Local Purchasing
Provide for economic lot sizing [1]
Lot For Lot                                                Lot for lot is defined as a lot-sizing technique which generates planned orders in quantities in each period[2]
Period Order Quantity                                       Period order quantity is defined as a lot-sizing technique under which the lot size is equal to the net requirements for a given number of periods.  This method is often used in conjunction with the ABC classification for the purchasing of raw materials. Blanket rules are determined for A's, B's, or C's. For example. A's order 4 weeks supply. B's order 10 weeks supply, C's order 6 month supply
Order Modifiers                                                 The order modifires are used to convert the order into practical quantities for ordering purposes. There are three modifiers most packages provide.                                                             * MinimumOrder Quantity                                  * Maximum Order Quantity                                *Multiple Order Quantity                                    The order quantity is rounded up to the nearest multible of the quantity entered into the system. This is required to plan order quantities which are practical when products are supplied in fixed pack sizes.
Processing Purchase Orders[3]
Requisition Management[4]
Selecting Suppliers[5]
Supplier Agreements[6]
Pricing[7]
Terms of Delivery[8]
Lot Based Deliveries[9]
Supplier certification Management[10]
Lot-based Ordering [11]
Blanket Orders[12]
Vendor scheduling [13]
Monitoring and Controlling Open Orders[14]
Receiving and Accepting Orders                        *Receipt Validation                                           * Receiving Inspection                                       * Movement of the Receipts                             *Record Keeping and Tracking                                              [15]
Approving Invoice for Payment [16]
Transportation Management 
[1]
Enas refaat:
An economic lot size is when the total cost to the company is at a minimum.  This can be calculated for any item, both manufactured or purchased by using "Economic Order Quantity"(EOQ) formula.  The concept is that there are two basic costs incurred with every order.  For a purchased item, when an order is placed and the receipt processed, a cost is incurred.  Therefore the smaller the order quantity, the more orders are placed, and the total cost increases.
[2]
Enas refaat:
That means that whatever quantity is required is the quantity orderd.
One must be very careful when using this method that it is fully appreciated that the time periods are normally one day in an ordering system.  If you have a requirement each day for a quantity of two, using this method without any other factors beig involved.  It will order two for each day as separate orders.  Common practice is that modifiers are used for "lot for lot"  whereby you group together differednt periods of time, or a factor for minimum, maximum, or multible quantity is aplied.
[3]
Enas refaat:
Many people are not aware of the real cost of placing and processing a purchase order.  The cost will vary by company depending upon such cost elements as:
- The system the company operates.
- The number of times per order
- If multible deliveries are permitted on one order
- The effectiveness of the operation
- If the items have tengthy incoming inspection proceudures
- How accounts payable operate
[4]
Enas refaat:
A requisition is a document  that details the item, quantity, and when it is required.  In addition it usually identifies the departement responsible for the cost of the material, delivery point and purchase autorization.  It may also indicate if a quotation is required for approval prior to the actual order being placed.
[5]
Enas refaat:
As a company starts moving into the concept of certified suppliers and partners, they need to select relaible suupliers with whom they believe they can build a good future working relationship. 
[6]
Enas refaat:
It means that we have come to some formal agreement with a supplier to perform some service. 
APICS defines a purchase order as a purchaser's authorization used to formalize a purchase transaction with a supplier.  A purchase order, when given to  a supplier, should contain statements of the name, part number, quantity,description, and price of the goods or service orderd, agreed-to terms as to payment, discounts, date of performance, and trasportation, and all other agreements pertinent to the purchase and its execution by the supplier. 
[7]
Enas refaat:
This is the price, which by placing the order, the buyer has accepted for  the duration of the order.  The price may have been negotiated or be a standard list price. Discounts are often given for volume purchases, annual spend aggrements or early payments of invoices.
[8]
Enas refaat:
This refers to payment terms and, for locally supplied items, can be the period in which the payment should be made.  For example, Cash on Delivery (COD) or 30 days from the statement.  This can also detail if the transportation cost from the suppliers plant to the customers premises is included in the purchase price or is to be paid by the purchaser.   
[9]
Enas refaat:
A lot-based delivery occures when an orderd quantity is delivered in one shipment.  This is the traditional method of purchasing / receiving where the supplier is delivering against a purchase oder, the goods are delivered to the receiving departemnt and into stock via incoming inspection. 
Tha quantity is checked as a "box count" in receiving and then a "full count" when the goods arrive at the store.
[10]
Enas refaat:
APICS defines a certified supplier as a status awarded to a supplier who consistentely meet predetermined quality, cost, delivery, financial and count objectives.  Incoming inspection may not be required
[11]
Enas refaat:
This is the concept of the buyer placing a purchase order for a quantity of an item.  It can be used for items that are required on a regular basis, but in many cases now, the lot-based orders are replaced by contracts.  Lot based orders are used for items that are needed for a specific requireemnts.  Often the buyer uses the quotation procedure with more than one supplier and then places an order stating the required delivery date.  With it being a one-off buy, typically the material will come into goods receiveing and then go through incoming inspection, before going into stock. 
[12]
Enas refaat:
A blanket purchase order is defined as a long-term commitment to a supplier for material against which short-term releases will be generated to satisfy requirements.  Often balnket orders cover only one item with predetermined delivery dates.
[13]
Enas refaat:
This approach to the supply of material has become very successful, specially for companies that have a regular demand for parts to support manufacturing. 
Tha planner receives the long-term MRP-generated material plan in the form of planned orders to cover the requirements of the master production schedule.  With the availability of a plan of this nature it is possiblr for the buyer to look ahead and negociate long term contracts.
 
[14]
Enas refaat:
Once the order is placed we need to ensure that the goods orderd are delivered on time.
Whe individual orders are placed it is quite common for a buyers assistant to verify, two weeks before the delivery date, that the order promise date will still be met.  This progressing can often wake the suppliers up regarding a delivery.  If they are manufacturing for you they should be able to check and see if the item is on target in thier own production area.
[15]
Enas refaat:
- Receipt Validation  Prior to the goods being unloaded into the receiveing area locate, the supplier's packing slip and determine whether you have an open purchase order for the goods being delivered, and they are in facr due.

- Receiving Inspection  In  most cases, after you have verified the receipt, you need to perform an incoming inspection.  This is usually done by Quality Control to ensure that the received parts conform to the company's  predetermined specifications.

- Movement of the receipts Before you move any goods you must be aware of any special material handling requiements. The GRN shoul include the purchase order number, part number, quantities and unit of measure, all of which should be entered into the company computer system.

- Receiving the receipt into stock  When the goods arrive at the relevant store it is the storekeepers prerogative to perform a count, to ensure that the quantity he books into stock is the quantity physically there.  Once the goods are physically placed into a storage rack the details need recordring to enable them to be found when needed.

- Record keeping and Tracking  Depending upon the system used, each step in the receiving process should be recorded into the system.  An important point is that it should be processed timeously, before that day's shift ends.
[16]
Enas refaat:
On receipt of the goods a copy of the Goods Received Note (GRN) is sent to the accounts departement.  With the release system the receipt has already been recorded against the release so the accounts departement can verify that the goods have been received.