| Document Name | Purpose of Document | When in the Purchasing Process is the Document Created? | Document Owner
(Who creates it?) | Document Recipients
(Who receives it?) |
| Supplier quotation | To have an identified supplier quote the part to see if they will be selected to have the part sourced to them to build. It is a formal statement stating that the supplier has legally consented to supply goods and services at the price and period specified. This document is created during a few different circumstances/stages. | It can be created during 4 different stages.
Stage 1-Upon design release to establish cost or support a target cost model
Stage 2-When demand is present in the system and there is no supplier identified
Stage 3-If the quote in the system is deamed old and needs to be refreshed based on an established cycle of when quote is still valid
Stage 4-When part has somehow been changed, possibly rolled revision and need to validate cost against revised drawing | Buyer creates and send off to supplier for completion | Once supplier completes the quote it is provided back to the buyer for input in to the system |
| Purchase Requisition Preparation | The purpose of this document is to describe the process for creating purchase requisitions based on the planned orders for standard external procurement that are generated by the stock requirements list. The demand is driven by the sales order. | This is the step before purchasing begins. The process begins with system generated planned orders from sales orders demand and ends with purchasing requistions to purchasing electronically. | Material Control Specialist | Buyer/Purchasing |
| Purchase Order | This is a commercial document that indicates types, quantities, and agreed prices for products and services. It is used to control the purchasing of products and services from external suppliers and confirms the order. | This is the first official offer issued | Buyer/Purchasing | Seller/Vendor |
| Purchase Order Invoice | Invoice is a document issued by a seller to a buyer indicating items sold, date of shipment, delivery, prices, and payment terms. The invoice is also specified with the period of time after which the buyer has to make payment to the seller for the goods and services they have purchased (Johnson, & Flynn, 2014). | This document is usually created after a quotation has been sent and when the sales process is moving closer to a confirmed deal. The invoice will include the seller’s bank details so that the buyer can arrange payments as required. | Supply Management | The consignee or Buyer receives a copy of the invoice. The carrier retains the original for records and billing purposes. |
| Purchase Order Bill of Lading | “A Bill of Lading is a document issued by a consignor or shipper,” for example, an order fulfillment center and signed by a carrier at the time of pickup, “ acknowledging that specified products have been received on board as cargo for delivery to a named consignee, or destination. It serves as a contract between the shipper or owners of the goods and the carrier for a number” (Investopedia, 2018). For example, it is evidence of a valid contract of carriage, and may incorporate the complete terms of the contract between the shipper such as a startup e-commerce order fulfillment service and the carrier which may include payment terms, rates, description of product classification, as well as other duties and obligations (Johnson, & Flynn, 2014). Next, a receipt is signed by the carrier confirming whether goods matching the contract description have been received in good condition. The information could include pallet or piece count, weight, product description and classification. Also, once signed by the consignee, it is a receipt of goods received providing final confirmation of the quantity and condition of the product received. A signature by the consignee is acknowledgement the goods are received as described on the BOL unless discrepancies are otherwise noted at the time the BOL is signed. Finally, the signed BOL may also often serve as a Proof of Delivery (POD) document as well as backup for the Freight Invoice (Alford, 2017). | A “bill of lading is a legal document between a shipper and a carrier” (Investopedia, 2018). This document is created and prepared and sign by both the shipper’s and carrier’s agents. This document is prepared at the time of or just before shipping of product. | Transportation Manager, Shipper | Consignee or customer receiving delivery from the shipper. |
| Purchase Order Acknowledgement | The purpose of this document is for the supplier to acknowledge the content to purchase a certain quantity of products from a specific supplier. It's primary purpose it so ensure that a supplier received the purchase order and has agreed upon receipt. | Once the purchase order is placed, the confirmation is manually entered into the erp system and can be sent to the supplier via email, fax or EDI. | Buyer/Procurement | Supplier |
| Delivery Note | The purpose of a Delivery Note is to acknowledge the receipt of a product by the buyer. A delivery note will accompany a shipment and be countersigned by the receiver upon receipt. Exchanging the product for a signature is usually the responsibility of the transportation company as the signature is acknowledgment buy the receiver that they have physically received the product from the transportation company, releasing them of responsability for the product. A Delivery Note's signature acknowledges the receipt of the product but may not always acknowledge quantity nor quality of the product. Different receiving procedure may not allow for an extensive count or quality check upon receipt, allowing this to be done after receipt but within a certain time period. Delivery Notes are different from Bills of Ladings in where as Delivery Notes can be broken up, having more than one Delivery Note under one Bill of Lading if the original shipment is going to more than one receiver ("Logistics Glossary", N.D.). | A Delivery Note is created when a product or shipment is ready for shipping. It acknoledges what is in the shipment including the quantity and the condition the shipment is in at the time of shipping. A Delivery Note is used during the transportation proccess acknoleging what was shipped, transported, and received. | Seller, Supplier, Shipper | Buyer, Receiving Department |
| Consignment Note | A Consignment Note is a document signed by the carrier acknowledging receipt of a product for transportation. It is proof of receipt by the carrier of the product for delivery. This document is directly tied to the carrier's responsibility of a shipment, signed by the carrier when loading a shipment, acknowledging reciept and condition of the shipment then countersigned by the receiver taking possession of the shipment, noting obvious damages or shortages upon receipt of the shipment ("Base Logistics", 2014). Base Logistics(2014 | A Consignment Note is created when the product or shipment is being transferred from the shipper to the carrier, usually when being loaded for transportation. It is acknowledgment of transfer responsibility for the shipment therefor can not be created and signed until physical transfer of the shipment is accomplished. | Seller, Supplier, Shipper | Transportation Company, Carrier |
| Goods received note | To acknowledge to the supplier that their material has arrived and the customer has taken ownership of the material. | It is created upon physical receipt and ownership of the material by the customer. | Customer/Customer's receiving and logistics | Reciept is sent to the supplier |
| Scorecard | This document is a strategic planning and management system which takes into account non-financial aspects of corporate performance, such as customer satisfaction and processes to create a complete picture of how the company is likely to perform in the future. | This document is created after all purchases have taken place within a certain period of time. | Management | Available for upper management to review. |
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ISCOM361Week4purchasingdocumentmatrix.xls
