Imported goods Purchase process in SAP ERP solution for Apparel and Footwear


Purchasing process could be done by following departments:

    • Logistic departments of manufacturing division: if buying in the domestic market.
    • Export divisions: if buying from overseas
    • Sales divisions: purchasing from clients’ assigned suppliers or for outsourcing orders
    • Purchasing orders are originated from:
    • material balancing needs
    • Manufacturing request by divisions

Imported Procurement process


Purchase requisition:

Staffs responsible for supplying materials of the manufacturing divisions will calculate the norm and necessary amount/number to dispatch purchase orders for preparation for client’s orders. The Import Division will receive purchase requisition from manufacturing and sales divisions. Export Division will also perform their own procurement based on their needs. On the other hands, the garment division’s logistic department will receive accessories and material purchase requisitions from the garment division’s planning department, and other manufacturing divisions.

Procurement information usually includes

·        Name of products

·        Technical specification

·        Amount/number

·        Products delivery timeline (there are certain procurement requests that do not require delivery timeline).

·        Reference price, desired price (if any)

Divisions/individuals responsible for procurement consider delivery timelines based on purchase requisitions, check suppliers’ capabilities– in case suppliers cannot satisfy the time requirement, inform the requesting divisions so that they can adjust the manufacturing schedule, or the sales division adjusts the delivery schedule.

For certain orders, in which clients appoint specific suppliers, the clients will provide the design, specific technical specifications, colors, etc. divisions in charge the order request will directly contact appointed suppliers for quotation and confirmation of the requested design, and place purchase orders. Purchase orders to international suppliers are usually made via email.

Departments and divisions exchange information each other to update orders’ status and process via email and by telephones through heads of departments and divisions.

Examine the inventory balance and create purchase requisitions: when receiving manufacturing orders, the planning division will analyze the norm, inventory balance, diminishing rate and determine the necessary purchasing amount and establish detailed purchase requisition, send to the logistic department who then will contact the Import division to place purchase orders.

Logistic staff of the manufacturing divisions will establish the purchase   requisition and send to managers of the manufacturing division. Then, managers of these manufacturing divisions will pass this information to the head of the Import Division who will assign a staff to carry out the procurement. This process is similarly applied when the Sales divisions place orders to the import division. Procurement information on yarn includes: type of yarn, count, and amount.

Collect Information: Supplier’s information is collected from various sources: internet, telephone directory, relationship, etc. This information is collected by business development agents and managed in their own databases. Quarterly, these agents will report their supplier lists including the following information:

·        Name

·        Address

·        Phone number

·        Products

However, prices of material and accessories are not updated and centralized. Every business development agent will update and manage prices of in-charged products/material in their own databases

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