1. Purpose: The Purchase Order Procedure outlines the process for creating, reviewing, approving, and managing purchase orders within the context of a Bangladesh-based e-commerce company. This procedure aims to ensure efficient and transparent procurement of goods and services, maintain accurate records, and facilitate smooth supplier interactions.
  2. Scope: This procedure applies to all employees involved in the purchase order process within the e-commerce company, including purchasing personnel, department heads, and finance personnel.
  3. Definitions:
  • Purchase Order (PO): A formal document issued by the company to a supplier, indicating the types, quantities, and agreed-upon prices for products or services to be delivered.
  • Requisition: A request submitted by a department or employee to initiate the purchase process.
  • Purchase Requester: The person or department requesting goods or services.
  1. Purchase Order Process:

Step 1: Purchase Requisition

  • The purchase process begins with the Purchase Requester submitting a Purchase Requisition to the Purchasing Department. This requisition should include details such as item description, quantity, estimated cost, preferred supplier (if any), and any other relevant information.

Step 2: Review and Verification

  • The Purchasing Department reviews the Purchase Requisition to ensure completeness, accuracy, and compliance with company policies and budgets.
  • If necessary, the Purchasing Department may contact the Purchase Requester to clarify or obtain additional information.

Step 3: Supplier Selection

  • The Purchasing Department evaluates potential suppliers based on various criteria, including price, quality, delivery times, and previous performance.
  • In cases where there are preferred suppliers, the Purchasing Department may reach out to them first to request quotations or negotiate terms.

Step 4: Purchase Order Creation

  • Once a supplier is selected, the Purchasing Department generates the Purchase Order. This document includes specific details about the products or services, quantities, agreed-upon prices, payment terms, delivery date, and any other relevant terms and conditions.
  • The Purchase Order is sent to the supplier through electronic means or physical copies, depending on the agreed-upon communication method.

Step 5: Purchase Order Approval

  • The Purchase Order is then routed for approval, typically to the department head or a designated authority.
  • The approver reviews the Purchase Order to ensure it aligns with the department’s needs, budget, and compliance requirements.
  • Upon approval, the Purchase Order is considered authorized and valid.

Step 6: Order Fulfillment and Receipt

  • The supplier processes the Purchase Order and delivers the goods or services as per the agreed-upon terms.
  • The receiving department inspects the delivered goods and verifies that they match the details mentioned in the Purchase Order.
  • Any discrepancies or damages are reported to the Purchasing Department for resolution.

Step 7: Invoice Processing and Payment

  • Upon satisfactory receipt of the goods or services, the supplier submits an invoice to the Finance Department.
  • The Finance Department verifies the invoice against the Purchase Order and ensures accuracy before proceeding with payment processing.
  • Payments are made within the agreed-upon payment terms.

Step 8: Record Keeping and Reconciliation

  • All Purchase Orders, invoices, and related documentation are maintained in an organized and secure manner.
  • Regular reconciliation is performed between Purchase Orders, invoices, and payments to ensure accuracy and identify any discrepancies.
  1. Compliance and Monitoring:
  • The Purchasing Department and Finance Department are responsible for monitoring compliance with this Purchase Order Procedure.
  • Regular audits and reviews are conducted to identify any process improvement opportunities or compliance issues.
  1. Training:
  • All relevant employees involved in the purchase order process should receive appropriate training to understand and adhere to this procedure.

Note: This procedure is a general guideline and may need to be customized based on the specific requirements and processes of each individual e-commerce company in Bangladesh. It’s important to keep it up-to-date and align it with the company’s policies and regulations.