Vendor performance should be tracked and evaluated. Documents and procedures Purchase requisition triggers the ordering process. Blanket orders are an agreement to purchase certain items at a designated price for a set period of time. Opportunities for IT EDI for transmitting POs to vendors Procurement cards - used for fueling fleet vehicles, cuts fraud greatly Receive and store goods Receiving dept responsible for accepting vendor deliveries Inventory stores is responsible for storage of goods Key decisions and information needs The existence of a valid PO indicates a delivery should be accepted. Goods received are damaged.
Goods fail inspection for quality.
Purchase of services differs from that of goods - supervisors of areas receiving services must be held accountable and charged in the accounts they will be responsible for.