Stores SOP of Purchase Order in the apparels
Stores SOP of Purchase Order in the apparels
Comprehensive Guide to Stores SOP for Purchase Orders in Apparel Manufacturing
Welcome to my detailed overview of the Stores Standard Operating Procedure (SOP) for Purchase Orders within the apparel industry. This SOP is essential for ensuring efficient procurement, cost control, and timely production in garment manufacturing.
Purpose of the SOP:
Order Confirmation & Profitability Assurance: To verify purchase orders before confirmation, ensuring profitability and smooth order execution.
Costing Accuracy: To facilitate Standard Minute Value (SMV)-based garment costing, enabling precise cost analysis.
Capacity & Resource Planning: To assess feasibility related to capacity, manpower, and machinery, supporting effective production planning.
Scope of the SOP:
This procedure establishes standardized practices for raising, recording, and authorizing purchase orders (POs). It encompasses the complete workflow, from placing the order to engaging with suppliers, promoting clarity and responsibility throughout the process.
Responsible Personnel:
Stores In-Charge: Oversees purchase order processes and inventory updates.
Merchandiser Manager: Coordinates order approvals and supplier communication.
Purchasing In-Charge: Manages procurement activities and supplier relations.
Accounts Department: Handles payments and financial documentation.
Step-by-Step Procedure:
Order Documentation: Copies of purchase orders (work orders) are sent to suppliers and also copied to the Stores department.
Order Tracking & Follow-Up: The Stores team monitors incoming goods against POs, updating relevant departments about receipt status.
Alignment with Production Plan: Stores ensure that purchase requisitions align with the Bill of Materials (BOM) and production schedules to prevent delays.
Factory Purchasing Procedures:
a) Purchases by Merchandisers:
Purchase orders are raised via the software system based on the approved BOM.
Orders are approved by authorized personnel before being sent to suppliers.
The system automatically copies POs to the Stores department.
b) General Items Sourced by Purchasing Department:
The company defines minimum stock levels for essential items.
The inventory management software tracks stock and alerts the storekeeper when levels are low.
Storekeepers generate purchase requests upon receiving alerts, which are approved by authorized persons.
Authorized requests are seamlessly transformed into purchase orders through automated system processes..
c) Special Item Purchases:
Manual requisitions are made by department heads for special items.
Requisitions undergo approval, then are entered into the system.
After approval, the system autonomously transforms requisitions into official purchase orders..
Benefits of the SOP:
Error Reduction: Minimizes mistakes in ordering, tracking, and payments.
Timely Procurement: Ensures materials are ordered and received on schedule, preventing production delays.
Enhanced Workflow: Streamlines communication between departments, suppliers, and stores for efficient procurement.
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Tags: #ApparelManufacturing #SOP #FabricTrimCard #QualityControl #GarmentProduction
#MerchandisingProcess #BOM #TrimsAndFabrics
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