Stores SOP of Purchase Order in the apparels

Here we can learn the purpose of Stores SOP of Purchase Order in the apparels. 

Purpose: 

• To confirm the orders with securing the profitability and smooth execution prior to confirm the order.
• To have SMV based garment costing.
• For feasibility study in capacity, Manpower and Machinery.

Scope:         

• To define a set procedure for rising of purchase orders, recording and authorizing practices.  

Responsible:

• Stores In–Charge, Merchandiser Manager, Purchasing In-Charge, Accounts department.

Procedure:  

1. Copy of Purchase orders (Work orders ) sent to suppliers and Stores

All the purchase orders (Work orders) sent to the suppliers, to be copied to the stores by the merchandising and purchasing department. Stores will follow and update the concerned department and parties on goods receiving against the  PO’s .  Stores follow up the requirement sheet (BOM) and PO’s against  the production plan to make sure the goods are in house on time as required and not to have any delay, with effect on the production department.

Factory purchasing procedure Should  be as  mentioned below,

a)     Purchases for the items source by Merchandisers

• Purchase orders raised by merchandiser through the software system
• Purchase orders should rise as per the approved BOM.
• Purchase order raised by the merchandiser will be approved by the authorized person for sourcing.
• Merchandiser will send the PO’s to suppliers.
• Purchase orders sent to suppliers will be copied to stores automatically by software system.

b)    Purchases for the general items sourced  by purchasing department

• Company has to define the minimum order levels for the general items
• Software system will automatically track the minimum stock levels and provide the alert to the store keeper.
• After receiving the minimum stock level alert by the system, the store keeper will raise a request note for purchase of the item.
• Request notes will be forwarded to authorized persons for approval for each supplier.
• After approval of requisition it will automatically be converted to a purchase order by the system. 

c)  Other purchases (Special Items) 

• Requisition(Manual)  to be made through the department head of the concerned department
• Requisition(Manual) will be submitted and approved by the concern person
• Approved requisition will be submitted to the store keeper to prepare the requisition in the system.
• System requisition will be submitted to the concerned person for final approval.
• After approval of requisition, it will automatically be converted to a purchase order by the system.

Benefits:

• Would minimize many mistakes and delays in material handling / Purchasing and / making Payments.