UNIVERSITY OF BATANGAS - LIPA CAMPUS

COLLEGE OF ENGINEERING AND ARCHITECTURE

INDUSTRIAL ENGINEERING
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SUPPLY CHAIN
MANAGEMENT

ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected]

 PURCHASING

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DEFINING QUALITY

At the end of this session, the students must be able to:

1. Define purchasing and role in supply chain

2. Illustrate purchasing process
3. Generate purchase order and supplier acknowledgement
form
4. Create supplier appraisal through a scorecard

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PURCHASING

THE ROLE OF PURCHASING

The purchasing department is responsible for ensuring that the
organization maintains the correct level of inventory to build and sell
products.
RESPONSIBILITIES OF PURCHASING
▪ Selecting & negotiating with suppliers
▪ Administering long-term contracts
▪ Monitoring supplier performance
▪ Placing orders to suppliers
▪ Developing a responsive supplier base
▪ Maintaining good supplier relations Undeniably the Best!
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PURCHASING

Material costs may represent at least 50–60 percent of

the cost of goods sold, purchasing significantly affects
profitability.

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OBJECTIVES OF PURCHASING

▪ Procurement of required quantity and quality of materials at the most

economical price
▪ Procuring the material well in advance to meet the needs of the production
department, to save production losses from lack of materials
▪ Buying an optimum quantity, neither too much nor too less, not affecting
capital or holding up production
▪ Improvement of the product with reference to quality by means of
selection of adequate material
▪ To keep top management aware of costs involved in the company’s
procurement and any market change that would affect the company’s profit
growth potential
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SUPPLY CHAIN
CHALLENGES and
SOLUTIONS

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QUALITY CUSTOMER SERVICE

▪ The supply chain management is centralized on the needs of the

customers. It is about giving the right quantity and the right quality of the
product for the right amount of money. All this, in perfect timing and
setting.
▪ Solution: It might seem simply, but on the contrary, it isn’t. Customers have
different preferences and we have to always adjust to the customer’s
needs. Being able to provide customers unique solutions make a difference
entirely. Companies that actually excel in this field are the ones that make
an effort to learn and invest in new technologies.

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COSTING

▪ Globally speaking, the costs of raw materials, energy and labor have
increased due to economical constraints. In order for operations to
continue production and provide customers with good quality items at
affordable rates, adjustments have to be made to keep operations running.

▪ Solution: The best solution to this issue would be improving your cost
control by executing your plans efficiently through constant monitoring.
Through efforts in providing warehouse efficiency you would be able to do
so.

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RISK MANAGEMENT

▪ Due to the constant change in the market, coming from a variety of sources
such as consumer demands, political agendas and global sourcing, would
cause major issues to the operations.

▪ Solution: Always be prepared with a risk management plan, on how your

company will be able to overcome disruptions during the course of
operations. By hiring a logistics software development company you would
be able to manage these issues effectively with less effort on your end.
After all, logistics management is vital to the entire operation.

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SUPPLIER RELATIONSHIP

▪ By creating a mutually sound and harmonious relationship with your

partners or suppliers, you will be able to provide your customers with
products of high standards in a timely manner. This also allows you to
create opportunities for improvement in terms of performance.

▪ Solution: By building a strong working relationship with your supplier, you

would be able to work efficiently and come up with a better output in a
short period of time.

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QUALIFIED PERSONNEL

▪ Over the years, it has become a challenge to find talent interested and
passionate about this line of work. Personnel hired in this field must have
an understanding about the duties and responsibilities needed.

▪ Solution: Since locating dedicated personnel to work for this field has
become increasing hard to find, their market value will start to rise. Hiring
and promoting through in-house staff would be the most affordable
solution at this point.

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UNFORESEEN DELAY

▪ Procurement of materials and products may be easy, but the delivery may
not always be 100% on time, especially with time differences and a variety
of shipping time frames. When items are sourced from different countries,
delays like this are very common.

▪ Solution: Always have buffer stocks. Through an efficient warehouse

management system you are able to know when you need to have certain
materials delivered as well as create a time cushion in terms of delivery to
make sure everything runs smoothly.

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FAST CHANGING MARKET

▪ With technological advancements changing our markets everyday, it is

quite difficult to stay in pace and adapt to the variety of innovations in the
market. But because the goal is to stay efficient in these changing times,
companies would have to be more flexible.

▪ Solution: Change is inevitable. The way we adapt to change is definitely

something we need to manage by using logistics management software.
We are able to move with the flow and improve our output as a whole.

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FAST CHANGING MARKET

▪ With technological advancements changing our markets everyday, it is

quite difficult to stay in pace and adapt to the variety of innovations in the
market. But because the goal is to stay efficient in these changing times,
companies would have to be more flexible.

▪ Solution: Change is inevitable. The way we adapt to change is definitely

something we need to manage by using logistics management software.
We are able to move with the flow and improve our output as a whole.

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ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected]
COMPARISON OF
PURCHASING VS
SOURCING

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PURCHASING

▪ The activity of buying supplies for a company (meaning in WORKPLACE)

▪ The activity of buying goods and services from a company (meaning in
Commerce)

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SOURCING

The process of vetting, selecting, and managing suppliers who can provide the
inputs an organization needs for day-to-day running. Sourcing is tasked with
carrying out research, creating and executing strategy, defining quality and
quantity metrics, and choosing suppliers that meet these criteria.

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PURCHASING COST

The costs of buying the materials or services. They include the cost
of placing orders, handling accounts payable, and indirect labor for
tasks like data entry and communication between different
departments or stakeholders.

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PROCUREMENT COST

The procurement cost is the subtotal of different costs involved in

the entire procurement process.

BASE COST
This is the price of the product or service that you're purchasing.
It's the unit cost multiplied by the quantity.
For example, if a product costs $5 per unit and you're buying 1,000
units, your base cost would be $5,000. You should always strive to
reduce the base costs by negotiating with suppliers and buying in
bulk to get discounts.
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PROCUREMENT COST

CONTRACT COSTS

These are the costs associated with the agreements and contracts
you have with your suppliers. They include the cost of drafting,
reviewing, and negotiating these contracts. The longer the
negotiation process, the higher the contract costs since you also
have to pay a legal team

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PROCUREMENT COST

PURCHASING COSTS

The costs of buying the materials or services. They include the cost
of placing orders, handling accounts payable, and indirect labor for
tasks like data entry and communication between different
departments or stakeholders.

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PROCUREMENT COST

FREIGHT COSTS

These costs crop up when shipping the goods from the supplier to your
warehouse or place of business. These costs can add up, especially if
you're importing goods from overseas, so it's important to find ways to
reduce them.

You can do this by working with suppliers who are located close to you
or by consolidating orders to get discounts on shipping. You can develop
strong relationships with cargo carriers to ensure they give you the best
possible rates.
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PROCUREMENT COST

INVENTORY COSTS

If you're keeping inventory on hand, you'll incur costs for storing

and managing it. They include the cost of renting storage space,
insurance, and inventory shrinkage (the loss of products due to
theft, damage, or expiration). You might also incur inventory
brokerage costs if you outsource inventory management to a third
party.

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PROCUREMENT COST

CUSTOMS AND TAXES COSTS

You'll have to pay customs duties and taxes if you're importing

goods from another country. These costs can vary depending on
the country of origin, the type of product, and the quantity
imported.

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PROCUREMENT COST

CUSTOMS AND TAXES COSTS

You'll have to pay customs duties and taxes if you're importing

goods from another country. These costs can vary depending on
the country of origin, the type of product, and the quantity
imported.

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CENTRALIZED VS
DECENTRALIZED
PURCHASING

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CENTRALIZED PURCHASING

1. Centralized Purchasing refers to purchasing of all the requirements

under the central point of the organization.
2. Centralized procurement means that purchasing is managed at the
headquarters level, while decentralized procurement means that
purchasing happens in various business units and locations.
3. In centralized purchasing, there is a dedicated procurement
department that handles all purchase orders, which is very
standardized and regulated to meet compliance standards2.
Centralized purchasing is suitable for organizations with only one plant
or several plants nearby, while decentralized purchasing is applicable
where there are several plants situated at different locations and
different raw materials are used in the production process for
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CENTRALIZED PURCHASING

▪ Business Dictionary defines centralized procurement as a purchasing system in

which all the departments of a company with a wide geographical distribution
can make purchases through a common purchasing organization
▪ In simple words, centralized procurement is a purchase of all required goods
and services by a single department for all the branches of the entire company
Generally, a purchasing manager heads the department
▪ Centralized procurement is beneficial in finding the best deals with local
vendors for the corresponding location of the company department It not only
aids in avoiding duplicity of orders, but also promotes advantages arising from
the high volume bulk discounts, lower transportation and inventory
management costs Centralized purchasing is an indispensable solution for
those who feel difficulties in managing long running transitions and mending
fences
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CENTRALIZED PURCHASING

▪ Combining the requirements of Plants and buying in bulk leads to substantial

reduction in purchase cost
▪ There is only one department dealing with limited items, a high order of
purchase skill can be expected
▪ Inter Plant transfer of materials in an emergency is possible
▪ Surplus Materials in one Plant can be utilized in meeting the requirements of
another
▪ The Centralized Purchase Department at Headquarters may lay down common
policies, procedures and systems for all the plants
▪ A periodic reporting system may be established between the plants and the
Centralized Purchase Department at Headquarters
▪ Organizations having Multi plant operations would benefit by adopting a
judicious blend of decentralized setup with centralized control
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CENTRALIZED PURCHASING BENEFITS

OVERHEAD EXPENSE REDUCTION

First and probably the most important feature of centralized purchasing is

the reduction in overhead costs for the enterprise Separate facilities
require not only individual lease agreements, but also separate utility
deposits, insurance policies, security features, office equipment, network,
etc

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CENTRALIZED PURCHASING BENEFITS

BETTER RELATIONSHIPS WITHIN THE ORGANIZATION

Interpersonal communication in recent years has been consistently placed

high as an important requirement for conducting successful job
performance in the organizations. Communication is what makes a team
strong In a centralized office, where employees and managers have the
opportunity to interact in person, atmosphere is much more pleasant, than
in departments where colleagues communicate via telephone or email
Company meetings, conferences and training seminars that are held in a
group setting increase employee productivity and rally team.

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CENTRALIZED PURCHASING BENEFITS

ADVANCED CONTROL
Management teams may operate more efficiently and cost effectively in a
centralized office Managers who are often absent or spread out among
various departments are typically less effective due to the absence of
regular contact with employees

TEAM COHESION
Employees who work together as a collective group get to know one
another’s work styles and approaches as their own That’s why such teams
are typically better able to collaborate on projects as a group A centralized
office also increases its ability to be consistent across all channels, with
employees all working under the same set of guidelines with regard to
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CENTRALIZED PURCHASING BENEFITS

SAVED MONEY
Centralized purchasing has many cost saving features Purchasing managers can
buy in bulk at reduced costs, can better manage inventory and assess company
needs Moreover, in centralized procurement there is no need to employ
individual managers for individual locations It’s obvious that addition of duplicate
staff positions implies additional costs Fortunately, in centralized purchasing you
don’t have to bother about that

MORE BENEFITS
Among the other key advantages of centralized procurement, we can define
avoidance of duplication, saved time, knowledge resource sharing, reduced
transportation costs, increased specialization, better relationships with the
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CENTRALIZED PURCHASING DISADVANTAGES

▪ Complex management of the company in case organization

becomes too large
▪ Difficulties with timely replacement of defective materials
▪ High probability of delays often requisitions for goods have to be
sent from distant areas
▪ Difficulties with purchasing materials from local suppliers in case of
an emergency
▪ Centralized purchasing is not suitable, if branches are located at
different geographical locations
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CENTRALIZED PURCHASING TASKS

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DECENTRALIZED PURCHASING

1. Decentralized Purchasing refers to purchasing of requirements of each

production center in an organization.
2. In decentralized purchasing, multiple departments, branches, or
employees can procure items they see as a need, which can be
beneficial to end users, but lacks consistency.
3. Decentralized purchasing is just the reverse of centralized purchasing
This is suitable for organizations running more than one plant Under
this type, each plant has its purchasing agents In other words, every
department makes its purchases This also calls localized purchasing
Also, Decentralized purchasing is quite flexible and can quickly adjust
following the requirements of a particular plant.
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DECENTRALIZED PURCHASING ADVANTAGES

▪ Materials can purchase by each department locally as and

when required
▪ Timely availability of materials
▪ Materials are purchasing in the right quantity of the right
quality for each department easily
▪ No heavy investment requires initially
▪ Less cost of internal transport
▪ Lower chance of obsolescence
▪ Purchase orders can place quickly, and
▪ The replacement of defective materials takes little time
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DECENTRALIZED PURCHASING DISADVANTAGES

▪ Organization losses the benefit of a bulk purchase

▪ Poor layout of space
▪ More finance requires
▪ Duplicate purchase of materials
▪ Specialized knowledge may be lacking in purchasing staff
▪ There is a chance of over and under purchasing of materials
▪ Fewer chances of effective control of materials
▪ Less technical skill obtains
▪ More clerical work, and
▪ Lack of proper co operation and co ordination among various
departments
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TYPES OF SOURCING

SINGLE SOURCING is when MULTI-SOURCING is when

companies source their companies source from
inputs from just one multiple different
supplier – each component, companies. For inputs,
raw materials, and other there are two or more
parts are bought exclusively different companies that
from only one firm.
supply the inputs.

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PURCHASING PROCESS

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PURCHASE REQUISITION FORM

A purchase requisition form is a form made by the user department

or maybe storeroom-personnel that notifies the purchasing
department of those items it wants to order, the quantity, and also
timeframe. It can even have the authorization to go ahead with the
purchase.

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PURCHASE REQUISITION FORM

• Heading–
• Name of the company
• Delivery- occur.
• Table–
• Purpose–.
• Budgeted Expenditure–
• Signatures–

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REQUEST FOR QUOTATION
Request for quotation or quote (RFQ) is a document that details a buyer’s requirements
and asks vendors to respond
STEPS for RFQ
1. Preparation and requirements
▪ Invitation to bid with introduction and summary
▪ Your RFQ timeline including Q&A and submission deadline
▪ Business overview with a description of your company, details on the project and any other
relevant background information
▪ Prequalification or minimum requirements to ensure the vendor is eligible to respond
▪ General terms and conditions, including whether or not terms are negotiable
▪ Pricing template or table, broken down by item and cost element
▪ Selection and evaluation criteria as well as your RFQ scoring guidelines
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STEPS FOR RFQ

2. Issuing and management

Now, it’s time to send the RFQ to your vendors. For most RFQs, it’s best to
select no more than eight vendors. By limiting the number of respondents, you
can ensure that you arrive at a speedy conclusion to your request for quotation
while still encouraging healthy competition.

Be sure to allow enough time for the supplier to work through the RFQ with
their team, at least a couple of weeks. Hopefully, you’ve provided enough
information that follow-up questions will be minimal. But, when questions do
arise, share the answers with all participants.

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STEPS FOR RFQ

3. Scoring and selection

The biggest benefit of the RFQ is that scoring and selection should be fast and
straightforward. The preparation you put in at the beginning will now pay off.
With your pricing template or table, you can easily compare vendors side by
side.

If working with a selection committee or additional stakeholders, compose a

summary with the key information. The memo should include an overview of
how many bids you received, the number of bids that were qualified and why
others were disqualified.

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STEPS FOR RFQ

4. Closing and contracting

Send an award letter to your selected vendor. Remember, the response
provided by the vendor is a quote, not a formal agreement. Negotiate with
your vendor to finalize the details. Then, assuming all goes well, you will
receive the vendor’s acceptance.

Because of your excellent preparation, the contracting process should be

simple. Create your contract with the details, terms and conditions, payment
information and deliverables that were outlined in the initial RFQ
documentation. After the contract is executed, notify the other vendors of your
selection using a proposal rejection letter.
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STEPS FOR RFQ

5. Review and evaluation

After the contract is signed, it’s a good idea to set a reminder to check back in.
While the deal is still fresh in your mind, make notes and set your first vendor
evaluation meeting. Ongoing vendor experience management is a key part of
developing effective, long-term relationships.

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PURCHASE ORDER STEPS

▪ Buyer lists the required items.

▪ Buyer decides on which vendor to buy from. This is specific to each product.
▪ Buyer prepares purchase orders and sends them to the vendor. This could be
on paper or sent electronically. They make use of templates for convenience.
▪ The vendor goes through the PO details, and if it is workable, a confirmation
is sent to the buyer.
▪ The confirmation indicates a purchase contract between both parties.
▪ At this stage, the seller prepares the order, assigning the required workforce.
▪ Product delivery is the next step. For easy identification and tracking, the PO
number is mentioned on the packing slips

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PURCHASE ORDER FORM

▪ A purchase order is a common business form used to list the products and
services being purchased, along with the price for each item.
▪ A purchase order form includes identifying information such as a purchase
order number, the contact information for the business placing the order, the
name of the vendor, and the shipping address.
▪ It also includes information about the shipping method, the delivery date, as
well as information about what is being purchased. It also totals the amount
due for the order.

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PURCHASE ORDER FORM

• PO number – controlled by Purchasing (in

series format). It is used for tracking.
• PO date – date the purchase is issued
• Purchase From – details of the supplier or
seller
• Ship To – details of the company and
where to ship specific item
• Shipping mode – mode of transportation
• Payment terms – based on the contract
agreement
• Date required – specific date of delivery
• Item description/ qty/unit price/amount –
detailed breakdown of the request
• Approved By – approval on organization
who is doing the purchasing
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PURCHASE ORDER FORM
STANDARD PO - This kind of order though
commonly used is primarily applicable to one-off
purchase order
- is suitable when the buyer is clear about the
products’ price, quantity, payment terms, and
delivery schedule.

PLANNED PO - specific long-term contracts that

require a steady supply of goods; however, the
scheduled delivery date is unknown. Other order
details like product types, price, payment term, and
quantity are clearly defined.

CONTRACT PO - the buyer and the vendor lay

BLANKET PO - Covers multiple orders within a down the terms of the contract, agree upon it,
single request. It is a strategy to avail bulk and then sign it. Both the parties are legally
purchase discounts. But these POs may not bound to the terms. Such POs are common for
state the original, discounted price or the purchase agreements to be executed in the
time of purchase. future. Undeniably the Best!
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PAYMENT TERMS

Payment Term Meaning

• PIA Payment in advance
• Net 7 Payment seven days after invoice date
• Net 10 Payment ten days after invoice date
• Net 30 Payment thirty days after invoice date
• Net 60 Payment sixty days after invoice date
• Net 90 Payment ninety days after invoice date
• EOM End of month
• 21 MFI 21st of the month following invoice date

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ORDER ACKNOWLEDGEMENT FORM

▪ A document that confirms/accepts the order sent by

Purchasing of an organization to the Supplier;
▪ Common reference of Purchasing and supplier is the
Purchase Order number.

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ORDER ACKNOWLEDGEMENT FORM
• Order Number – indicates
the PO number from
customer
• Requested by : Name of
requestor /customer
contact person
• Address : Customer
address / shipping Address
• Date – acknowledgement
Date
• Table – contents or
breakdown of order
• Terms & condition :
Vendor/supplier terms
• Signature – person who
confirmed the order
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INVOICE

• An invoice is a
document or bill sent
by a provider of goods
and services to their
customer. Invoices
itemize the transaction
and include payment
amounts and terms.

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INVOICE

• An invoice is a
document or bill sent
by a provider of goods
and services to their
customer. Invoices
itemize the transaction
and include payment
amounts and terms.

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SUPPLIER APPRAISAL
`
▪ A supplier appraisal is a process that evaluates the performance of
suppliers based on certain criteria. This evaluation helps organizations to
determine whether their suppliers are meeting their expectations in terms
of quality, delivery, and cost-effectiveness.

▪ During a supplier appraisal, an organization assesses various aspects of its

suppliers’ operations such as product or service quality, delivery
timeframes, responsiveness to queries and complaints, financial stability
and overall business practices. By conducting regular appraisals,
procurement professionals can identify areas for improvement and work
with suppliers to address any concerns which may impact the supply chain.

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IMPORTANCE OF SUPPLIER APPRAISAL

1) To ensure consistent quality and timely delivery from your suppliers. By

conducting supplier appraisals, you can evaluate the performance of your
suppliers and identify any areas that need improvement. This helps to
maintain a good relationship with the supplier while also ensuring that
they meet your business needs.
2) they help to minimize risks. When you have regular assessments of your
suppliers’ performance, you can identify potential issues before they
become major problems. This includes identifying any potential supply
chain disruptions or delays in delivery.
3) It helps to improve overall product quality. By assessing a supplier’s
production process, materials used, and their communication processes,
businesses can ensure that products delivered by their suppliers meet
their customers’ expectations consistently.
Undeniably the Best!
ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected]
IMPORTANCE OF SUPPLIER APPRAISAL

4) Regular supplier appraisals encourage open communication

between businesses and their suppliers. These assessments provide an
opportunity for both parties to discuss performance goals and how any
issues can be addressed collaboratively. As such, it ensures good
relationships are maintained thereby strengthening procurement
operations within organizations

Undeniably the Best!

ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected]
VENDOR ASSESSMENT

Vendor assessment is an evaluation and approval process that businesses

can use to determine if prospective vendors and suppliers can meet their
organizational standards and obligations once under contract The end goal
is to secure a low risk, best in class vendor and supplier portfolio
Vendors and suppliers both furnish services or goods, but there is a
distinction The term Vendor applies to business to business (B2B) and
business to consumer (B2C) sales relationships, while Supplier applies only
to B2B relationships

Undeniably the Best!

ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected]
10C MODEL OF SUPPLIER EVALUATION (BY DR. RAY CARTER)

Undeniably the Best!

ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected]
CARTER’S 10C MODEL

COMPETENCY Ask vendors to provide evidence of proven quality with other

customers, and review their training and development procedures, qualification
records, essential personnel background and abilities, and recruitment methods
CAPACITY Look into prospective partners’ current and forecasted orders and
customers, along with how that impacts the ability to meet your current and
projected requirements Ask for operational statistics around quality or service
level challenges, which should be readily available if the supplier is ISO 9000
accredited To learn more about this accreditation read “The Ultimate Guide to
ISO 9000”.

Undeniably the Best!

ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected]
CARTER’S 10C MODEL

COMMITMENT TO QUALITY Review the policies and procedures the

company uses on an ongoing basis to monitor and manage quality and
adherence to industry standards, such as ISO 9000 and HIPAA
CONSISTENCY OF PERFORMANCE Ensure that your future partner will be
able to deliver consistently high levels of quality and service throughout
the life of the contract For example, look for a vendor that assigns an
account manager as a single point of contact dedicated to quality control
and oversight this indicates the vendor’s commitment to high performance

Undeniably the Best!

ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected]
CARTER’S 10C MODEL

COST REVIEW whether the product or service can be delivered at a reasonable

price and keep your vendor or supplier in business
CASH AND FINANCE Of course, you want to work with a financially stable entity
Request the most recent fixed and current asset lists, profit and loss (P&
statements, and credit rating documentation
COMMUNICATION Ensure that your vendor or supplier will set up and manage
(or conform to your existing) communications channels, whether in person with
your account manager and other key personnel, via virtual meetings, or with
collaboration software

Undeniably the Best!

ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected]
CARTER’S 10C MODEL

CONTROL OF INTERNAL PROCESSES Ask for evidence of how the company

manages inventory, quality control operations procurement, marketing,
distribution and health, and safety
CLEAR (CORPORATE SOCIAL RESPONSIBILITY) Vendor and supplier services and
products should conform to legal and environmental standards and requirements
CULTURE Determine if you and your potential partner share values and working
philosophies before you enter into a contract A similar outlook makes for
smoother work relationships and helps you establish long term partnerships

Undeniably the Best!

ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected]
CLASSWORK
1. Each group shall create the following as outputs.
A. Purchase Requisition Form
- any tools such as caliper/microscope/digital weighing
scale/jack pallet/plastic pallet/Trolley or
- any consumables such as cotton gloves, rags, etc.
that is used in manufacturing.

B. Purchase Order Slip (related to number 1)

*Check with existing suppliers, Get at least 3 quotations
from different suppliers, make a decision on where to place the
order.
*Create a supplier evaluation criteria to show why you
choose a certain supplier/vendor.
C. Acknowledgement Form based on number 2
Undeniably the Best!
ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected]
CLASSWORK
`
1. Each group shall create the following as outputs.
A. Purchase Requisition Form
- any tools such as caliper/microscope/digital weighing
scale/jack pallet/plastic pallet/Trolley or
- any consumables such as cotton gloves, rags, etc.
that is used in manufacturing.

B. Purchase Order Slip (related to number 1)

*Check with existing suppliers, Get at least 3 quotations
from different suppliers, make a decision on where to place the
order.
*Create a supplier evaluation criteria to show why you
choose a certain supplier/vendor.
C. Acknowledgement Form based on number 2
Undeniably the Best!
ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected]
CLASSWORK

Undeniably the Best!

ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected]
HOMEWORK

Establish vendor scorecard based on the supplier/vendors you

have issued PO based from your last activity.

Undeniably the Best!

ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected]
UNIVERSITY OF BATANGAS

LIPA CAMPUS
Undeniably the Best!
COLLEGE OF ENGINEERING AND ARCHITECTURE

INDUSTRIAL ENGINEERING DEPARTMENT

Thank You!
ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected]