Purchase Order Procurement Workflow

Purchase Order Procurement Workflow

Purchase Order Procurement Workflow

The Purchase Order Procurement Workflow is a critical process in BEC Arabia's operations, ensuring the timely and cost-effective acquisition of goods and services for our mega projects. This workflow aligns with our commitment to professionalism, efficiency, and compliance, and is designed to streamline procurement logistics, reduce errors, and improve project outcomes.

Workflow Details

1. Identify Needs: The project team identifies the need for specific goods or services and submits a purchase requisition.

2. Approve Requisition: The procurement department reviews the requisition for accuracy and completeness, and approves it.

3. Select Supplier: The procurement team selects a supplier based on BEC Arabia's supplier selection criteria.

4. Create Purchase Order: The procurement team creates a purchase order (PO) detailing the goods or services to be procured, the agreed price, and the delivery schedule.

5. Approve Purchase Order: The PO is reviewed and approved by the relevant authority within BEC Arabia.

6. Send Purchase Order: The approved PO is sent to the supplier.

7. Receive Goods or Services: The goods or services are received, inspected for quality, and matched against the PO.

8. Invoice Processing and Payment: The supplier's invoice is processed and payment is made.

Compliance and Regulations

This workflow is in compliance with KSA laws, BEC Arabia’s internal policies, and international construction standards. It ensures transparency, fairness, and competitiveness in procurement processes, as required by KSA regulations. It also aligns with BEC Arabia's commitment to ethical business practices and our internal controls for procurement.

Metrics and KPIs

Key Performance Indicators (KPIs) for this workflow include:

• Procurement Cycle Time: The time taken from the identification of a need to the receipt of goods or services.

• Cost Savings: The difference between the initial cost estimate and the final cost.

• Supplier Performance: The supplier's adherence to the terms of the PO, including quality, price, and delivery schedule.

• Invoice Accuracy: The percentage of invoices that match the PO without discrepancies.

Collaboration

This workflow involves collaboration between the project team, the procurement department, and the finance department. The project team identifies needs and submits requisitions, the procurement department handles supplier selection and PO creation, and the finance department processes payments. Clear communication and coordination between these departments is essential for the smooth operation of this workflow.

Additional Notes and Templates

• Always use BEC Arabia's standard PO template when creating a PO.

• Regularly review and update the supplier selection criteria to ensure it reflects current market conditions and BEC Arabia's needs.

• Ensure all procurement activities are documented and records are maintained for audit purposes.

• Continually look for opportunities to improve the efficiency and effectiveness of this workflow.