Purchase process not merely is active procurement of raw materials, services,... for business but also as a sequence of steps that requires the accuracy, transparency and coordination between the departments. In particular, when the conversion trends of increasingly powerful, the application of technology solutions in the process become more and more urgent. LV-DX Dynamic Workflow is one of the optimization tools help enterprises standardize and automate the purchase process, thereby improving performance. Follow the following article to better understand the operation standardized process for purchasing of business with LV-DX Dynamic Workflow.
1. The purchase process is what?
Purchase process is a sequence of operations and steps taken to ensure businesses get the raw materials, goods, or services required from the supplier. This is an integral part of production operations and business of all businesses and play an important role in maintaining continuous operation and efficiency.
The standardized purchasing process to help business remove the vulnerabilities, enhance transparency, better control related activities. In particular, in the context of technology development, the application of the management software purchasing process becomes more necessary to help automate and optimize the steps in the process of purchasing, from which enhance performance, reduce risk.
2. Flow chart purchase process of the business standard
A flow chart purchase process standards are designed to ensure that all procurement activity of business takes place in an organized, efficient, and consistent.
- Step 1. Purchase request: The first, related parts determine the demand for purchase, including the specifications, quantity, specification and the time required. This request is then recorded and routed to the purchasing department to proceed to the next step.
- Step 2. Request a quote: Purchase parts, contact with the potential supplier to request a quote. This step is important to gather information about the prices and the conditions of purchase from many different suppliers.
- Step 3. Quotes from supplier (NCC): The supplier send detail quotation for parts a purchase, including price, delivery terms, payment terms. The quotes are synthesized and compared to choose the most suitable suppliers.
- Step 4. Approval: A quote from the supplier will be reviewed and approved by the stakeholders in the business. If not approved, the purchasing department may have to request a quote from other suppliers.
- Step 5. Contracts/purchase orders: After the quote is approved, business, signing contracts or orders with the selected vendor. The purchase contract includes detailed terms of price, quantity, quality, delivery time.
- Step 6. Recommendations and suggestions testing details: After completing all procedures ordering parts purchases establishment proposal and suggest check the goods sent to the relevant parts as inventory, accounting to track performance.
- Step 7. Cargo inspection:Goods after received will be checked for quantity, quality and other technical standards. If the goods do not meet the requirements, the business will pay back to the supplier.
- Step 8. Warehousing: Goods that meet the requirements will be warehousing and recorded in system inventory management of the business.
- Step 9. Payment: Business proceed with the payment to the supplier according to the terms agreed in the contract. The vouchers as receipt, written test thu, supplier invoices will be stored for reference.
- Step 10. End: purchase process of the business ends when all active procurement, inspection, warehousing and payment has been completed. The related documentation will be stored and businesses will evaluate the effectiveness of the process as well as the quality of our service provider.
3. The knot should be noted in the purchase process
In the purchase process, businesses often face a number of bottlenecks, affecting operational efficiency. The identification and handling of this knot is very important to ensure the process goes smoothly and efficiently.
- Issue approval delays: the approval process usually takes more time due to through multiple levels of management and approved manually.
- Ineffective communication between departments: information or communication tool promptly between departments can lead to delays and errors in the purchase process.
- Duration signing the contract lasts: process contract lasts, so wait level management, contracting, craft, waiting for time to delivery for partners.
- Payment delayed: the payment process is complex and not synchronized can lead to the payment delayed or occur errors, affect the relationship with suppliers.
- Management certification from complex and not in sync: the management of the stock from related purchases such as contracts, orders, invoices... often very complex and prone to errors if done manually.
4. Standardizing the process to remove holes with LV-DX Dynamic Workflow
4.1 Apply LV-DX Dynamic Workflow for the purchasing process
- Standardized purchasing process
Apply LV-DX Dynamic Workflow to help businesses convert numbers purchase process by automation workflow related departments. All the steps in the process from purchase request, proposal quotes, approval, contract, enter orders, check orders, to payment are all made on a single system. The steps in the process is decentralized closely follow the master process, the implementation, monitoring, notification,... besides, the system automatically switches to the next step in the process until the end.
- Automation affairs
Software automates creating purchase requests, send request a quote to the supplier, approval, order carry-over work for related parts. The work is set deadlines to ensure progress, the assistant prompts the support process is guaranteed throughout, r is the right time and the right people responsible.
- Approval requirements on the system
LV-DX Dynamic Workflow integration with software approval and signing of right in the process, help to shorten the time for approval, and ensure the legality of the documents. Managers can approve requests for purchases, the purchase contract right on the system, no need to print or send back to supplier.
- Track progress, assess visual
Software process management of Lac Viet provide the tools to control and evaluate the effectiveness deploy the purchase process. The report and the statistics table to visually help businesses track progress, evaluate the effectiveness of each step in the process, identify the problem or need improvement.
- Hosting bills, vouchers electronics
LV-DX Dynamic Workflow supports storage and management of electronic documents such as contracts, orders, invoices, receipts, weigh... The electronic storage help minimize the risk of loss and save storage space, easy access when needed. All documents are securely stored, can be quick search on the system.
4.2 efficient LV-DX Dynamic Workflow bring business
LV-DX Dynamic Workflow to help optimize the entire purchase process by automating the steps of effective work to help reduce errors and improve the quality of work. The automation in the buying process also helps businesses save significant time. The request, approval, transaction processing, etc. are made quickly and accurately on the system, minimize the waiting time. LV-DX Dynamic Workflow to help businesses save costs by reducing manual steps not needed, to avoid incurring related expenses due to errors from the human element.
Through optimized operation process a purchase with LV-DX Dynamic Workflow from which ensure that all goods and services you need always available when your business needs. This helps business to maintain continuous operation and avoid the shortage of goods.
Standardized process for purchasing of business with LV-DX Dynamic Workflow, so construction investment process standardized with the support of technology is step strategy to help businesses neckline with the trend of global development.
Contact now to get free demo the entire features of LV-DX Dynamic Workflow or get advice – solve every problem related from Vietnam.
The article above has provided the basic knowledge about purchase process the steps to perform the procedure effectively for business. With the strong development of digital technology, the digitization process not only helps to optimize the operation but also as step strategy to help businesses neckline with the trend of global development.
CONTACT INFORMATION:
- Lac Viet Informatics Joint Stock Company
- Hotline: 0901 555 063 | (+84.28) 3842 3333
- Email: info@lacviet.vn – Website: https://lacviet.vn
- Headquarters: 23 Nguyen Thi Huynh, P. 8, Q. Phu Nhuan, ho chi minh CITY. Ho Chi Minh
