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Policies and Procedures Summary - Essay Example

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It is apparent that organizations normally have different categories pertaining to purchasing policies. Categories of purchasing policies are the different laws…
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Policies and Procedures Summary
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Policies and Procedures Summary

Download file to see previous pages... The policy of operational issues is essential for the control of harmful wastes, which helps in the conservation of the environment and the community. The management policy establishes the criteria for making requisitions, payment methods and the departments concerned in the transactions (OBrien, 2009). The purchasing policy enables a company to have an organized system that determines the supplier requirements, objectives and product quality (OBrien, 2009). The other significant purchasing policy category is the supplier’s duty for substandard supplies, which spells out the procedures to be taken in case of wrong shipment or contents.
The basic procedural areas of procurement comprise of the purchasing cycle, correct application of purchasing forms and the development of authorized agreements. The purchasing cycle procedure describes the details of the procurement that employees must observe when contacting suppliers (Monczka, 2009). Procurement involves documentation and this requires the use of the correct forms for every purchase made. The forms offer the correct description of supplies needed and the quantity. This should include the vital information that the suppliers need to know about the requisition and the prices tagged for each commodity. The other procedural area is the establishment of legal intentions between the supplier and the buyer (Monczka, 2009). The legality of the transaction eliminates breach of agreement and fraud that might arise during the shipment period. The payment mode is another procedural area that must be addressed when dealing with procurement. This is because it signals the termination of a transaction and helps to establish a positive working between the parties.
The e-supply chain (e-SCM) is an optimization of business practices and rate in every aspect of an organization. This is because it uses the internet and web-technology to manage the supply of commodities. The e-supply ...Download file to see next pagesRead More
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