Purchasing is a highly complex hierarchical procedure with targets that reach a long way past the conventional conviction that purchasing essential job is to acquire products and ventures because of inward needs. The general targets of buying can be requested in five critical zones: supply movement, manage the sourcing strategy capably and effectively, make supply base organization, make balanced destinations to inner partners, and create coordinated buying techniques that help hierarchical objectives and goals.
Below is a picture of the aerospace forgings and machine components, for both commercial and military aircrafts and helicopters.
As proven, purchasing technique will help company to gain productivity improvement and cost saving by optimizing to achieve their core business processes and goals.
Below is a diagram showing a purchasing cycle.
Step One: Assessing need and creating Request for Quotation
Procurement assess the identification of need that include what to procure, the amount to obtain, where to deliver, and what the quality gauges are required.” This need will be communicated through a document called Purchase Request.
End users are the person who involved in developing the formal document that the details in which off-aircraft maintenance tasks on the specified component shall restoring a structural component to a functional state and re-working and restoring methodology are regularly given in any fitting Component Maintenance Manual.
The purpose of the specification is to covey the buyer’s requirement using Component Maintenance Manual for sourcing potential suppliers and helps the buyers to assess offers by giving a premise to similarity.
There are a few basic approaches to search new suppliers by browse through official aerospace website which provide a list of local/regional distributors and aerospace trade shows for aircraft and component parts in order to find a reliable and competitively priced supplier to success for the organization.
The next step is to Request for Quotation (RFQ) includes details on the product or service required like quantities, certification requirement and sent out to preferred suppliers. The RFQ stage can be initiated through direct negotiation.
Step Two: Receiving and Assessing Vendor Quotes
When the quotation being received, the buyer would need to consider those criteria that meet the requirement for the product or services like specification, delivery status, quality (requesting a sample), cost and past performance before selecting suitable suppliers. For the aviation distributor of aircraft parts, the firm will have a few suppliers to supply this part items before conducting a price comparison. The buyer will do a price comparison for a few suppliers based on the pricing, shipping terms and last purchase pricing.
For the negotiation, the buyer would need to view the last purchase price before deicing to ask the supplier for a discount to meet the target price. After the stage of price comparison, the buyer would need the purchasing manager or general manager approval authorization to proceed for the purchase order. For the new supplier, the buyer would need to send the request for supplier to fill up the vendor evaluation form and another supporting document like quality management form.
Step Three: Purchase Order Issued to Vendor
Purchase orders are the document for official offer issued from the buyer to a seller by indicating the quantity of items, detailed descriptions of the items, the price, date of purchase and payment terms for the product or services. It is very important tools that purchase orders should use to guarantee spend remains inside spending plan. Without purchase orders following costs is increasingly troublesome, inclined to blunders an approving conveyance reports turn into an issue.
A purchaser should follow up on the delivery to meet the customer lead time by using the outstanding order report to the respective suppliers. If there is goods delay and not met the customer fulfillment, it will have impact the business turnover rate for the sales. It will be best for a company to get the spare parts delivered without surpassing the spending limit and also fulfill the customer needs.
Step Four: Purchase Order Items Received
The physical of the act for receiving the delivery of goods and storing them in the warehouse. The warehouse staff will need to generate the goods receipt note with packing list by checking the quantity of aerospace parts against the purchase order and invoices to ensure the delivery as agreed and send for inspection. To the extent of quantity accepted based on inspection process of business, the company will strictly require the warehouse staff to check and ensure the parts are come with good condition before taken into the inventory stock.
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