# Procurement - Standard Operating Procedure (SOP)

#### <span lang="EN-GB" style="font-family: 'Arial',sans-serif;">Purpose</span>

<span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: #202124; background: white;">The purpose of the operating procedure is to provide detailed instructions on how to carry out a task so that any team member can carry out the task correctly every time. The operating procedure also assists in ensuring that all new employees receive the same training. The operating procedure eliminates the guesswork from day-to-day operations and assists employees understand the processes, policies and procedures associated with their jobs. Ultimately, the purpose of the Operating procedure, and adherence to the procedures allows for a logical and continued link between different processes within the organization resulting in reduced errors, time savings on daily processing, greater capturing accuracy, more accurate and easily accessible analytics, adherence to compliance and governance.</span>

#### <span><span lang="EN-GB" style="font-family: 'Arial',sans-serif;">Scope</span></span>

<span lang="EN-GB" style="font-family: 'Arial',sans-serif;"> </span>

<span lang="EN-GB" style="font-family: 'Arial',sans-serif;"><span style="mso-spacerun: yes;"> </span>This procedure will apply to:</span>

<span lang="EN-GB" style="font-family: 'Arial',sans-serif;"><span style="mso-spacerun: yes;"> </span>Job Costing (Project) management processes</span>

<span lang="EN-GB" style="font-family: 'Arial',sans-serif;"><span style="mso-spacerun: yes;"> </span>The full Procurement cycle and processes</span>

<span lang="EN-GB" style="font-family: 'Arial',sans-serif;"><span style="mso-spacerun: yes;"> </span></span>

3. **<u><span lang="EN-GB" style="font-family: 'Arial',sans-serif;">Objectives</span></u>**

<span lang="EN-GB" style="font-family: 'Arial',sans-serif;"> </span>

<span lang="EN-GB" style="font-size: 12.0pt; line-height: 150%; font-family: 'Courier New'; mso-fareast-font-family: 'Courier New'; mso-ansi-language: EN-GB;"><span style="mso-list: Ignore;">o<span style="font: 7.0pt 'Times New Roman';"> </span></span></span><span lang="EN-GB" style="font-size: 12.0pt; line-height: 150%; font-family: 'Arial',sans-serif; mso-ansi-language: EN-GB;">Eliminate manual processes being performed outside of the ERP</span>

<span lang="EN-GB" style="font-size: 12.0pt; line-height: 150%; font-family: 'Courier New'; mso-fareast-font-family: 'Courier New'; mso-ansi-language: EN-GB;"><span style="mso-list: Ignore;">o<span style="font: 7.0pt 'Times New Roman';"> </span></span></span><span lang="EN-GB" style="font-size: 12.0pt; line-height: 150%; font-family: 'Arial',sans-serif; mso-ansi-language: EN-GB;">To maintain the quality of data and transaction processing</span>

<span lang="EN-GB" style="font-size: 12.0pt; line-height: 150%; font-family: 'Courier New'; mso-fareast-font-family: 'Courier New'; mso-ansi-language: EN-GB;"><span style="mso-list: Ignore;">o<span style="font: 7.0pt 'Times New Roman';"> </span></span></span><span lang="EN-GB" style="font-size: 12.0pt; line-height: 150%; font-family: 'Arial',sans-serif; mso-ansi-language: EN-GB;">To serve as a training document for training users on the processes </span>

<span lang="EN-GB" style="font-size: 12.0pt; line-height: 150%; font-family: 'Courier New'; mso-fareast-font-family: 'Courier New'; mso-ansi-language: EN-GB;"><span style="mso-list: Ignore;">o<span style="font: 7.0pt 'Times New Roman';"> </span></span></span><span lang="EN-GB" style="font-size: 12.0pt; line-height: 150%; font-family: 'Arial',sans-serif; mso-ansi-language: EN-GB;">To facilitate consistent conformance to quality system requirements</span>

<span lang="EN-GB" style="font-size: 12.0pt; line-height: 150%; font-family: 'Courier New'; mso-fareast-font-family: 'Courier New'; mso-ansi-language: EN-GB;"><span style="mso-list: Ignore;">o<span style="font: 7.0pt 'Times New Roman';"> </span></span></span><span lang="EN-GB" style="font-size: 12.0pt; line-height: 150%; font-family: 'Arial',sans-serif; mso-ansi-language: EN-GB;">To provide guidelines and a bases for accurate and timely data collections/ reporting</span>

<span lang="EN-GB" style="font-size: 12.0pt; line-height: 150%; font-family: 'Courier New'; mso-fareast-font-family: 'Courier New'; mso-ansi-language: EN-GB;"><span style="mso-list: Ignore;">o<span style="font: 7.0pt 'Times New Roman';"> </span></span></span><span lang="EN-GB" style="font-size: 12.0pt; line-height: 150%; font-family: 'Arial',sans-serif; mso-ansi-language: EN-GB;">Ensure compliance of the process as well achieving governance </span>

<span lang="EN-GB" style="font-family: 'Arial',sans-serif;"> </span>

<span lang="EN-GB" style="font-family: 'Arial',sans-serif;"> </span>

4. **<u><span lang="EN-GB" style="font-family: 'Arial',sans-serif;">Procedure</span></u>**

**<u><span lang="EN-GB" style="font-family: 'Arial',sans-serif;"><span style="text-decoration: none;"> </span></span></u>**

**<span lang="EN-GB" style="font-family: 'Arial',sans-serif;">5.1 Procurement Process Flow Chart</span>**

<span lang="EN-GB" style="font-family: 'Arial',sans-serif; mso-no-proof: yes;">![](https://hugeerp10.co.za/hsofmanual/uploads/images/gallery/2023-08/embedded-image-qmvmejrb.png)  
</span>

**<u><span lang="EN-GB" style="font-family: 'Arial',sans-serif;"><span style="text-decoration: none;"> </span></span></u>**

<span lang="EN-GB" style="font-family: 'Arial',sans-serif; mso-no-proof: yes;">![](https://hugeerp10.co.za/hsofmanual/uploads/images/gallery/2023-08/embedded-image-egqawjcl.png)  
</span>

**<span lang="EN-GB" style="font-family: 'Arial',sans-serif;"><span style="mso-tab-count: 1;"> </span></span>**

**<span lang="EN-GB" style="font-family: 'Arial',sans-serif;"><span style="mso-spacerun: yes;"> </span>5.2 Process Steps </span>**

**<span lang="EN-GB" style="font-family: 'Arial',sans-serif;"><span style="mso-spacerun: yes;"> </span></span>**

<table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" id="bkmrk-1-receive-enquiry-2-" style="width: 266.0pt; margin-left: 38.15pt; border-collapse: collapse; mso-yfti-tbllook: 1184; mso-padding-alt: 0cm 5.4pt 0cm 5.4pt;" width="355"><tbody><tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes; height: 15.0pt;"><td nowrap="nowrap" style="width: 22.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="29"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">1</span>

</td><td nowrap="nowrap" style="width: 244.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="325"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">Receive Enquiry</span>

</td></tr><tr style="mso-yfti-irow: 1; height: 15.0pt;"><td nowrap="nowrap" style="width: 22.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="29"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">2</span>

</td><td nowrap="nowrap" style="width: 244.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="325"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">Source Supplier</span>

</td></tr><tr style="mso-yfti-irow: 2; height: 15.0pt;"><td nowrap="nowrap" style="width: 22.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="29"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">3</span>

</td><td nowrap="nowrap" style="width: 244.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="325"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">Request for Supplier Quote (RFQ)</span>

</td></tr><tr style="mso-yfti-irow: 3; height: 15.0pt;"><td nowrap="nowrap" style="width: 22.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="29"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">4</span>

</td><td nowrap="nowrap" style="width: 244.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="325"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">Award/ Approve Quote</span>

</td></tr><tr style="mso-yfti-irow: 4; height: 15.0pt;"><td nowrap="nowrap" style="width: 22.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="29"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">5</span>

</td><td nowrap="nowrap" style="width: 244.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="325"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">Capture Purchase Order</span>

</td></tr><tr style="mso-yfti-irow: 5; height: 15.0pt;"><td nowrap="nowrap" style="width: 22.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="29"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">6</span>

</td><td nowrap="nowrap" style="width: 244.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="325"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">Attach Supplier Quote</span>

</td></tr><tr style="mso-yfti-irow: 6; height: 15.0pt;"><td nowrap="nowrap" style="width: 22.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="29"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">7</span>

</td><td nowrap="nowrap" style="width: 244.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="325"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">Request PO Authorization</span>

</td></tr><tr style="mso-yfti-irow: 7; height: 15.0pt;"><td nowrap="nowrap" style="width: 22.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="29"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">8</span>

</td><td nowrap="nowrap" style="width: 244.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="325"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">PO Authorization</span>

</td></tr><tr style="mso-yfti-irow: 8; height: 15.0pt;"><td nowrap="nowrap" style="width: 22.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="29"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">9</span>

</td><td nowrap="nowrap" style="width: 244.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="325"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">Attach Authorization</span>

</td></tr><tr style="mso-yfti-irow: 9; height: 15.0pt;"><td nowrap="nowrap" style="width: 22.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="29"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">10</span>

</td><td nowrap="nowrap" style="width: 244.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="325"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">Order</span>

</td></tr><tr style="mso-yfti-irow: 10; height: 15.0pt;"><td nowrap="nowrap" style="width: 22.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="29"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">11</span>

</td><td nowrap="nowrap" style="width: 244.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="325"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">Receive Stock / Part Receive Stock</span>

</td></tr><tr style="mso-yfti-irow: 11; height: 15.0pt;"><td nowrap="nowrap" style="width: 22.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="29"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">12</span>

</td><td nowrap="nowrap" style="width: 244.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="325"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">Complete Receive Stock to GRV/ Delivery Note</span>

</td></tr><tr style="mso-yfti-irow: 12; height: 15.0pt;"><td nowrap="nowrap" style="width: 22.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="29"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">13</span>

</td><td nowrap="nowrap" style="width: 244.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="325"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">Attach Supplier Invoice/ Delivery Note</span>

</td></tr><tr style="mso-yfti-irow: 13; mso-yfti-lastrow: yes; height: 15.0pt;"><td nowrap="nowrap" style="width: 22.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="29"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">14</span>

</td><td nowrap="nowrap" style="width: 244.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" valign="bottom" width="325"><span lang="EN-GB" style="font-family: 'Arial',sans-serif; color: black;">Process Goods Received Voucher (GRV)</span>

</td></tr></tbody></table>

**<span lang="EN-GB" style="font-family: 'Arial',sans-serif;"><span style="mso-spacerun: yes;"> </span></span>**

<span lang="EN-GB" style="font-family: 'Arial',sans-serif;"> </span>

<span lang="EN-GB" style="font-family: 'Arial',sans-serif;"> </span>

<span lang="EN-GB" style="font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; mso-fareast-theme-font: minor-fareast;"></span>