Discussion: Below, I am providing you a simplified look into the procurement process of Corporate Alpha. I want you to design a flowchart for this process illustrating all steps of the operation.
Please find attached flowcharting guidelines document and a PPT that has a lot of hits in order to help you build one.
Please make the best design that covers all the steps and is also based on the most logical sequence). You can use computer-aid programs (Word, Excell, Visio, etc.) to draw the final flowchart, or if you have fantastic drawing skills, do it by hand.
Once you were decided about the best design, briefly discuss if you see any bottleneck within the process flowchart or not.
Step-by-step simplified Procurement Process for ‘Corporate Alpha’:
01. Factory requires a tool, spare part, or equipment
02. Factory checks the inventory to see if needed items are available or not
03. If the items are available, factory use them and report the updated inventory status to the procurement department via inventory update forms.
04. If the items are not available, factory issues a ‘Part Request’ (PR) to procurement department including the technical aspects of the requested item/s
05. Procurement Manager checks the PR and assigns the job to procurement officers. If the item was available within the local market, PR would be assigned to Local Procurement Experts. If the item had to be purchased from the foreign market, PR would be assigned to Int’l Procurement Experts.
06. Procurement Experts send the quotation request (including required technical standards) to at least three suppliers.
07. Suppliers send two separate quotations to the company: a technical quotation and a commercial quotation
08. Procurement experts send the technical quote to the factory for technical approval. Procurement experts send the ‘sealed’ commercial quotation to the procurement manager.
09. Factory assess the technical quotations and inform the procurement department about the results. If the technical offer is rejected, then procurement manager rejects the commercial quotation without opening it.
10. Procurement department sends all sealed commercial quotations (technically approved) to trade commission consisting of top corporate executives.
11. The trade commission opens the commercial quotations and compares the offered prices.
12. The trade commission selects the best price and informs the procurement department about the winner of the bidding process
13. Procurement department sends the acceptance to approve for the quotation of the winner supplier
14. The procurement department and the supplier negotiate and agree on the terms of delivery and insurance
15. If everything is agreed to satisfy the requirements of the procurement department, Corporate Alpha places the order
16. If procurement department does not reach its desired conditions, procurement manager asks the Trade Commission to announce the second supplier-winner.
17. Once the order was placed, the factory will be informed by the procurement department about the delivery time
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