Definition
The purchasing of direct materials scenario covers the process of material purchase from vendors on a contractual basis for a fixed period of time or an amount of product. It can also be used for purchasing direct works. For repetitive manufacturing, materials are usually purchased under long-run contracts. Purchasing direct materials is started by generating plan-based purchase orders and ends with receiving them in the warehouse for subsequent use in production or sales. The received goods are tracked and stored in the warehouse.
Legend
- a process group the process belongs to - a typical business process - a typical E2E business process scenario - a typical E2E business process cluster
Purchase direct materials flowchart
Business processes list
- Assess inventory requirements for procurement
- Generate plan-based purchase orders
- Define delivery terms
- Specify terms for purchase orders and submit for approval
- Confirm purchase order and send to vendor
- Follow-up purchase order progress
- P2M Inbound logistics
- Process vendor invoices by purchase orders
- R2R Vendor invoice offset (Based on purchase order)