Procurement Basics

Supply Chain Management and Procurement October 25, 2025
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Introduction

This course provides the essential, practical knowledge required to execute daily procurement activities efficiently and in compliance with organizational policies. It concentrates on the mechanics of the purchase-to-pay (P2P) process, focusing on key documents, system utilization, and transactional accuracy. Participants will gain proficiency in managing requisitions, issuing purchase orders, and the critical three-way match process for invoice validation. This is a hands-on, procedural training designed to ensure that purchasing staff can perform their transactional duties accurately, minimizing errors and facilitating prompt payment to suppliers.

Objectives

Upon completion of this course, participants will be able to:

  • Accurately manage the Purchase-to-Pay (P2P) cycle within an ERP or purchasing system.
  • Identify and generate key procurement documents (requisitions, POs, receipts).
  • Execute the **three-way match** process to ensure payment accuracy.
  • Write clear and precise specifications and statements of work (SOW).
  • Understand the importance of contract management in the transactional process.
  • Effectively handle exceptions, discrepancies, and returns in the receipt process.
  • Maintain accurate supplier records and master data in the procurement system.
  • Understand the compliance requirements related to segregation of duties in P2P.

Target Audience

  • Junior Buyers and Purchasing Administrators
  • Accounts Payable (AP) Specialists
  • Receiving Clerks and Warehouse Staff
  • Users of Procurement/ERP Software (e.g., SAP, Oracle)
  • Finance Staff responsible for transactional control
  • New Employees in Compliance and Internal Audit

Methodology

  • Hands-on simulation using an ERP system interface for the three-way match process.
  • Group activity: identifying and resolving discrepancies in a set of P2P documents.
  • Individual exercise: drafting a clear Purchase Order amendment request.
  • Case studies on the cost impact of transactional errors (e.g., incorrect invoicing).
  • Checklist development for ensuring complete supplier master data.

Personal Impact

  • Improved accuracy and efficiency in day-to-day purchasing tasks.
  • Confidence in navigating and utilizing procurement technology (ERP systems).
  • Clear understanding of compliance roles and segregation of duties.
  • Reduced transactional errors, facilitating timely payment to suppliers.
  • Enhanced foundational knowledge for career progression in supply chain.

Organizational Impact

  • Reduced risk of fraudulent payments through accurate three-way matching.
  • Faster cycle time from purchase requisition to payment (P2P efficiency).
  • Improved financial control and audit readiness for procurement spend.
  • Better supplier relations due to consistent and timely payments.
  • Standardization of purchasing documentation and process across the organization.

Course Outline

Unit 1: The Purchase-to-Pay (P2P) Process

P2P Cycle Mechanics
  • Detailed walkthrough of the Purchase-to-Pay workflow
  • The role of automated P2P systems and ERP modules
  • Defining key transactional roles and segregation of duties (SoD)
Key Documents and Their Purpose
  • Creating and approving the **Purchase Requisition (PR)**
  • Issuing and amending the legally binding **Purchase Order (PO)**
  • Understanding the Goods Receipt Note (GRN) and Invoice

Unit 2: Managing Specifications and Supplier Data

Requirements Definition
  • Writing effective product and service specifications (technical vs. functional)
  • Developing a clear **Statement of Work (SOW)** for services
  • The impact of poor specifications on quality and cost
Master Data Management
  • Creating and maintaining accurate supplier master records (e.g., banking details)
  • Handling supplier data changes and internal controls for updates
  • The importance of standardized item and material master data

Unit 3: Order Management and Expediting

Order Placement and Tracking
  • Techniques for effective order placement and confirmation
  • Monitoring and expediting orders to ensure on-time delivery
  • Managing partial shipments, backorders, and lead time tracking
Performance Monitoring
  • Tracking key transactional metrics (e.g., PO cycle time, on-time delivery)
  • Initial steps in resolving minor supplier delivery issues

Unit 4: Receiving and Invoice Processing

The Receiving Process
  • Procedures for physical inspection and recording goods receipt (GRN)
  • Handling damaged goods, over-shipments, and under-shipments
  • The importance of timely and accurate goods receipt recording
Invoice Verification (Three-Way Match)
  • Matching the PO, Goods Receipt Note, and Supplier Invoice
  • Resolving invoice discrepancies and routing for approval
  • The role of Accounts Payable in the final payment run

Unit 5: Compliance and Records

Transactional Compliance
  • Adherence to internal delegation of authority limits
  • Maintaining an audit trail for all P2P transactions
  • Basics of record retention policies for procurement documents

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