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purchasing process map
11
Purchasing process map
Taager
Supply Chain Team
Recommendations made by category team Sample brought by sourcing buyers Product approved by category manager New SKU is created as expired on the website First buy qty is decided by the commercial team and brought by the sourcing team
Product delivered to the WH and website status changed to available only when the product is reflected on the WMS.
New SKU (1st Buy)
Suggestion
First buy Qty to be discussed with the demand planner to assess expected demand and avoid NotOuts or fast removal from website
Suggestion
Account managers should have more control on those new SKUs
for example:
locking those SKUs on HVMs to test their بعفعقثبسشيdemandشيييييشسيلبشمنسيتييشسيلنتبابنتملبممنلالبىبلالبينتم
New supplier
New Supplier
sourcing team to proceed with the first buy and list the SKU-ID in the SKUs Data Sheet
Suggestion
Both teams should have one sheet for the SKU data (Example Below).
That will ensure data accuracy.
This sheet should be filled for each SKU ID as shown below.
The Supplier data part is up to the Purchasing teams.
Suggestion
SKU-ID CONTAINS:
https://docs.google.com/spreadsheets/d/1kaKj40Dh19mVeWffAuLXQdNr4_cmWwHTn0vUCg8EXS8/edit#gid=0
existing supplier
Existing supplier
The sourcing team assign the 1st buy to the procurement team by sending an e-mail. The SKU owner is changed in the SKU data sheet to procurement instead of sourcing.
New sku replenishment :
New SKU (Replenishment)
Replenishment PRs are released by the Planning team on a daily basis. It is then assigned to one of the teams according to the SKU owner as shown next.
Sourcing
PR assigned by planning has 4 days SLA to either :
Fail to fulifill
Fulfill and close PR
Partially fulfill
Planning team to cancel PR or assign it to procurement
Planning team will cancel the remaining qty or assign it to the procurement team.
PR Closing: Suggestion
When PO is released for one of the purchasing teams, this team will close it when fulfilled partially or totally.
In case the PO is partially fulfilled (more than 50% of the PR Qty is purchased), the planning team would either approve cancelling the PR and neglect the remainig Qty or issue a new PR to the other team (SKU would have a comment (Supply Risk or Sourcing Risk))
In case this team failed to fulfill, the PR will be assigned to the other team as a (Supply Risk or Sourcing Risk))
Suggestion
Supply planning team should act on the partially fulfilled POs within 24 Hrs from the purchasing notification, and then the reply would be either by cancelling the remaining Qty or assignig it to the other team.
Procurement
PR assigned by planning has 4 days SLA to either :
Fail to fulfill
Fulfill and close PR
Partially fulfill
Planning team to cancel PR or assign it to Sourcing.
Planning team will cancel the remaining qty or assign it to the procurement team.
Suggestion
Suggestion
*DOH should no longer be presented in the PR and should be replaced by priority level (1:3) as 1 is top priority
*Note that the DOH will still be sent to all stakeholders on daily basis
Daily PR to include the following data:
SKUs Handover :
New SKUs are handed-over to the procurement team after 45 days from the first buy.
Hand Over
The handover process includes all the supplier data and all SKU IDs.
Existing SKUs replenishment:
Commercial team forecasted numbers are sent to the SC Planners in the Commercial/Sales plan (Sent every 2 days)
Then the demand planner validates those numbers and sends them to the supply planners to create the PR.
Existing SKU
(Replenishment)
PRs are sent one day ahead so theسسشسيشس purchasing teams can work on validating and checking the availability of the SKUs on the same day so that they can release the PO the next day.
Suggestion
Commercial team should send the commercial plan on weekly basis and the adjusted numbers with justifications so that the supply chain planning team would be able to release accurate PRs
Suggestion
PO follow up sheets (Procurement and Sourcing sheets) to be combined in one PO follow up sheet
Suggestion
https://docs.google.com/spreadsheets/d/1EoGoa5-PXibXYgFhjRybx7I3epIzGxUZ8poTGwJpAvY/edit#gid=0
The cutoff point (Last considered update date for the PR Creation) will be at 03;00 PM.
PR creation
PR creation
PR is created on a daily basis and is sent to the responsible team based on the product ID provided by the purchasing teams.
When creating the PR, we put into consideration the following aspects:
1-WMS 2-DOH 3-NotOuts
4-Actual Avg Demand
5-Forecasted Demand (Commercial & Demand perspective)
6-Open POs 7-Consignment
8-Re-Order point
9-SKU Lead Time
PR vs PO
- PR code is the plain text of the PR date XXXX
- PO code is the (plain text of the PO date)-(supplier code) XXXX-YY
PR vs PO
- PR contains the required Qtys defined by the planning team
- PO contains the Qtys to purchase and the supplier data
ReOrder points & Tiering:
Re-Order point
PR is issued at 70% of the proposed days. An availability check action is taken in this period between the proposed days and the re-order point.
Re-Order point check:
Re-Order point check
The 70% reorder point rule should be reviewed by the supply chain panning team and both the strategic planning team and performance team to ensure efficiency
Tier vs Daily orders
Tier 1 200+
Tier 2 140-200
Tier 3 80-140
Tier 4 20-80
Tier 5 0-20
Tiering
Qty ordered:
Lead times smaller than 30% of the proposed days
ordered qty equals the missing proposed day
Qty Ordered
Lead times bigger than 30% of the proposed days
ordered qty equals the missing proposed day+ Lead Time
Special Cases For Re-order Points:
- Consignment Items
- SKUs that are manufactured
- SKUs with High Lead Time
- Importation
Special cases
Lead Time should be stated for any SKUs that will need an exception for their re-order point so that we can include it in the PR Cycle.
PO SLAs:
PR assigned by planning has 4 days SLA to either
Fail to fulifill
Fulfill and close PR
Partially fulfill
PO SLA and Assigning
Planning team to cancel PR or assign it to the other team
Planning team to cancel the remaining qty or assign it to the other team
Suggestion
SLA for each team is 48 Hrs from the PR date to determine SKU status in order for the the planning team to be able to assign it to the other team (SLA 24 Hrs to assign or cancel PR) and to bring down daily NotOuts
Other Important Info
NotOuts:
Not outs
NotOuts are reviewed by the SC planning team on daily basis and included in the PR as top priority
Spikes :
spikes
Spikes are monitored by the planning team and the commercial planners. Urgent PRs are sent to the purchasing teams to cover those SKUs and fulfill orders.
Daily Demand Actions:
On daily basis, actions are taken on SKUs to ensure safe landing and reduce NotOuts
DOH are a vital element in taking those actions:
Demand actions
Suggestion
The commercial team should follow a PR-PO cycle when releasing an urgent PR to cover a spiking SKU or NotOut.
This supply chain team would help provide the tools and the data needed to implement this cycle.