Understanding the need for products
The process begins when the buyer recognizes the need for a particular product or service that the seller can supply. The buyer specifies the item, the quantity needed, and the desired delivery date.
For example, a manufacturing company may need a huge amount of raw materials during the holidays to meet increased demand for its products. The buyer must define the exact types and quantities of materials needed and the lead time to ensure that they have the right raw materials to meet their production goals.
Based on the defined requirements, the buyer creates a purchase order that includes all relevant data, such as product description, quantity, price, delivery date, and additional terms and conditions. The purchase order is sent as a formal request to the supplier of the specified products or services.
To avoid irregularities or delays in the purchasing process, the buyer must ensure that the purchase order details are accurate and complete for the supplier.
For example, the buyer can specify the specific types and quantities ivory coast phone number data of raw materials required, the agreed unit costs, and the delivery date.
The seller reviews the purchase order
Once the purchase order is sent to the supplier, the supplier will carefully examine it to ensure that it corresponds to its inventory and its capacity to satisfy the buyer's request.
For example, the seller must ensure that he has the desired items in stock and can supply them on the agreed date. Overlooking inventory checks will lead to problems in the delivery of the product; as a buyer, you should check the availability of the product beforehand.
The seller reviews the purchase order and approves it.
After review, the seller will approve the purchase order if it meets the buyer's specifications. Approval of the purchase order shows the seller's promise to supply the specific product mentioned in the order without delay.
Fulfillment of purchase orders
With the approved purchase order, the seller completes the order by supplying the customer with the specified products or services. This stage involves the delivery of the products or the provision of the agreed services.
Invoice paid
During this final phase, the buyer is responsible for paying the invoice according to the seller's payment terms. Payment is approved for the products or services received, as indicated on the invoice.