Bahria University Islamabad

Name: Umaid Ali

ID: 01-211092-060
Email: umaid666@hotmail.com
Mobile: 0300 5535100
Semester: 7
th

Section: C
Date of submission:



Supervisor: Mr. Nadir Hayat Khan
Position: Manager Procurement
Phone: 0333-5500034
Email: nadir.hayat@ufonegsm.net


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Contents
Executive Summary ...................................................................................................................................... 3
Company Overview ...................................................................................................................................... 4
Head Office ........................................................................................................................................... 4
Vision .................................................................................................................................................... 4
Objectives ............................................................................................................................................. 5
Departments at Ufone ........................................................................................................................... 5
Chain of command ................................................................................................................................ 6
Span of Control ..................................................................................................................................... 6
Products................................................................................................................................................. 6
Position and description of duties ................................................................................................................ 7
Project Details ....................................................................................................................................... 7
Organizational/Departmental/Branch Analysis .......................................................................................... 11
Internal Potency .................................................................................................................................. 11
Internal deficiencies ............................................................................................................................ 12
External circumstances ....................................................................................................................... 13
External threats ................................................................................................................................... 14
Main Problem ...................................................................................................................................... 14
Recommendations ...................................................................................................................................... 16
Learning objectives ..................................................................................................................................... 18
What was accomplished through this affiliation? ............................................................................... 18
Facets of my responsibilities ............................................................................................................... 18
Implementation of course knowledge ................................................................................................. 19
How was this internship destined to impact your career? ................................................................... 19
Any other comments you would deem appropriate and relevant. ....................................................... 20
Annexure ..................................................................................................................................................... 21
Hierarchy at Procurement Department ............................................................................................... 22
The Process ......................................................................................................................................... 23
References ................................................................................................................................................... 25

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Executive Summary

To start I would like to thank Ufone for giving me the opportunity to come and be a part of the
company and experience the corporate world through their lenses.
Ufone has started a summer internship program in which they intended to employee around 150
interns which would be in different departments and gain corporate experience with relevance to
their respective fields, and I am glad I was a part of this program.
I interned at the CPA department (contracts and procurement administration) sub department
being IT procurement which is located in Razia Shareef plaza, Blue Area, Islamabad. The
duration of my internship was six weeks which was from 2
nd
July 2012 till 15
th
August 2012.
The basic project assigned to me was organization of tendering, when Ufone floats a tender a
complete file is maintained along with the soft copies, my task was to organize those files bring
them in a proper format by attaching file separators and labeling them so it is easy to identify that
where a certain document would be and in case of need one doesnt have to search the whole
file. Moreover I was also required to identify and attach all the missing documents so each and
every file was complete with respect to all relevant documents which would make it easy for the
managers to obtain a certain document instead of the entire department scanning their computers
and making fuss more over this whole data had to be uploaded on Ufone share point as well so
anyone interested to get the procurement information could extract it. Uploads to share point
constituted of holistic information about the tenders floated including all the relevant details one
would need. Along the way I was also assigned some other tasks which included uploading the
documents on U portal, Making comparative statements (CS), Making a Purchase Order,
scanning and maintaining previous six months POs, giving calls to venders and try persuading
them to send in their bids before the due date so process can speed up, clearing and handing over
the cheques to venders and various other procurement processes of Ufone on SAP.

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Company Overview

The company commenced its operations under the brand name of Ufone f r om
I s l amabad on J anuar y 29 2001. Uf one expanded i t s cover age and has added
new cities and highways to its coverage network. After the privatization of PTCL, Ufone is now
owned by Etisalat. During the year, as a consequence of PTCLs privatization, 26% of its shares
were acquired by Emirat es Telecommunication Corporation (Etisalat). Bei ng par t
of PTCL, t he management of Uf one has al s o been handed over t o Etisalat.
During the years, Ufone continued on the path to success. The Company further expanded its
coverage and has added new cities and highways. Ufone has network coverage in more
than 5885 locations and across all major highways of the country. Dur i ng t he year Uf one
adopt ed t he pol i cy of s i mpl i f i ed t ar i f f s wi t h no hi dden charges, which resulted
in positive impacts on the usage trends of subscribers as well as total subscriber base, which has
increased to 19.4 million. Ufone currently caters for International Roaming to more than
230 live operators in more than1 3 0 c o u n t r i e s a n d i n t r o d u c e d
I n t e r n a t i o n a l r o a m i n g f a c i l i t y f o r P r e p a i d subscribers in Saudi
Arabia, United Kingdom, United Arab Emirat es, Singapore, Portugal, Thailand, Cyprus,
Bangladesh, Uzbekistan, Tunisia, Sri Lanka, Belgium a n d Ku wa i t wi t h l o we s t
r a t e s , f e a t u r i n g n o s e c u r i t y d e p o s i t a n d a c t i v a t i o n charges. GPRS
Roaming facility is avail able with more than 115 Live Operators across 85 countries
The company has al s o been awar ded a new Li cens e f or pr ovi di ng
cel l ul ar services in Azad Jammu & Kashmir and Northern Areas.
Head Office

The head office of the ufone is located in 13-B, F-7 Markaz Islamabad, Pakistan.
Vision
To be the leading telecommunication service provider in Pakistan by offering
innovate communication solutions for our customers while exceeding shareholder value &
employee expectation.


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Objectives

Ufone is a dynamic organization with a powerful culture that allows people to make
the most of their skills, personality and career. I developed such knowledge and skills
which directed to my career .Customer Service Uf one i s pr oud t o have an ef f i ci ent
and f r i endl y cus t omer s er vi ce t hr ough 21 company-owned Sales & Customer
Service Centers and nearly 250 franchisees across the country. The outlets are able to
service the customers with innovative solutions, and are empowered with Web based franchise
management systems. Uf one i s poi s ed t o f ace t he ever i ncr eas i ng chal l enges of
t he mar ket and i s conf i dent i t wi l l at t r act new cus t omer s . I t has t he
abi l i t y t o r et ai n i t s exi s t i ng customer base with a high level of customer
satisfaction via optimum network service and a 24 hour call center facility.


Departments at Ufone

The following are the departments operating at Ufone:

Human Resource Management

Marketing Department

Commercial Department

Sales Department

Finance Department

Payroll Department

Information Technology Department
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Engineering Department

Contracts and Procurement Administration

Auditing Department

Customer Care

Chain of command
At Ufone though managers delegate due to their superior position but in crucial times
they forget about their posts and work as team.

Span of Control
At Ufone three subordinates are working under every manager and those subordinates
have two employees each working under them.

Products
Ufone offers both prepaid and postpaid services along with various packages according to the
demands and needs of the customer.











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Position and description of duties

The project which was assigned to me was organization of tendering. The department I got in for
internship was Contracts and Procurement Administration, Islamabad Blue Area and by the end
of six weeks I was clear why ufone needs a procurement department. Procurement department is
basically responsible for providing things which are needed by ufone they can be day to day
items like stationary or heavy projects like shifting and renovation of office building, ufone has
divided the procurement department in three major chunks, marketing, General Admin and IT.
All the respective portions deal in their respective areas like General Admin would procure
everything which is not under the heading of marketing or IT, this would include stationery,
plants, kitchen and bathroom accessories, etc. whereas marketing portion will only entertain
marketing portion like giveaways, banners, etc while IT procurement will only look after the IT
part like laptops, printers, RFID cards, security cameras, etc.
Project Details
Initially I was assigned the project of organization of tendering as explained above, each and
every document has to be filed for the record, now previously major chunk of the data was in
soft form and majority of the documents were missing in the files so it was my responsibility to
hunt them down and file them up in a proper manner, so I filed file separators details of which is
given below:









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Heading Documents underneath
Contract/PO Contract
PO
NC/Waivers NC
Waiver(email)

TOC/Bid bond
TOC(Technical)
TOC(Commercial)
Bid Bond
TEC TEC
CEC CEC
PR PR



Floated Tender
Instruction to Bidders
Terms and conditions of the contract
Technical RFP document
Price Template floated
Tender floating approval
Tender extension approval
Budget approval email
Technical Technical proposals of all bidders
Commercial Financial proposals of all bidders
Final negotiated proposals of all venders


At the end
Delivery certificate
PAC
SAC
GR
Performance bond
Cheque details
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This project was completed on 15 August 2012 and now all these sorted files lie with sir Nadir. I
learned a lot from this project and now at the end I know all about tendering, though document
extraction was a huge task and I had giant hurdles like TOCs werent there in many files which
needed to be printed first and then signed which took a lot of efforts and similarly the PAC and
SAC certificates were also difficult to obtain and a lot more had to be obtained but at the end of
the day it all paid off when at the last day it was all done.
Moreover I was given tasks in between as well like I was said to upload RFP, NC, TEC, CEC
and PO on the U portal, though I didnt had a deadline but still I wanted to get it done soon but it
took me 3 days of constant efforts as it was not that simple as it sounds, upload portion was easy
but finding the relevant documents was quite some work as many missing documents had to be
scanned or traced down which consumed time. Then due to further orders I also had to attach the
financial portion of the project on the portal, which meant finding and uploading all the quotes of
all venders so a folder was created by the name Financial and all the quotes were attached in it.
Moreover along with my project I also scanned and arranged the entire POs for IT department
now which lie with sir Shahzad Rafiq. I also made calls to the venders to remind them to send
their quotes, though this seems a small task but I learnt a lot from this due to the fact that
deadline was after 5days but I had to convince them with a mild tone but authoritative words to
send their quotes early.
I helped out sir Fakhar as well with organizing his complete cases which included PO, PR and
Cheque.
Moreover I worked a lot on Sap which included all the procurement processes, like document
extraction, document attachment, making a PO, etc.
Moreover I also experienced the biding process as sir Junaid took me along for the bid of secure
printing solution where I got a chance to fill the documents as well. I also got a chance to make
Comparative statement (CS) which cleared out which vender would be selected.

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In my six weeks of interning I learnt a lot about Procurement department itself and its
importance for Ufone, The knowledge I have gained was partially from my work but a major
chunk comprises of discussions with employees which include:
Fakhar Malik Senior Executive Procurement
Junaid Jamil Executive Procurement
Shazad Rafiq AM IT Procurement
Nadir Hayat Manager Procurement
I owe the above mentioned people a lot for their serious efforts with me and explaining me all
the functions of the ufone procurement department.



















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Organizational/Departmental/Branch Analysis

Internal Potency
Ufone has network coverage in more than 750 cities, towns and across all major highways of the
country; moreover it provides International Roaming facility with more than 150 international
operators across 79 countries. Ufone is proud to have an efficient and friendly customer service
through 21company-owned Sales & Customer Service Centers and nearly 250 franchisees across
the country. They have always believed in a solid commitment to growth, security and reliability.
Therefore, Ufone has always balanced its expansion efforts and quality of service with a total
current investment of $400 Million. Utunes was launched on 4th Dec 2007 which attracted many
people towards Ufone. Along with it, it is offering the service of Multi-media Messaging Service
(MMS). As mobile users in the country have reached over 78 million at a very rapid pace, Ufone
has maintained itself as the 2nd largest cellular operator in Pakistan with a subscriber base of
around 16.5 million and a market share of nearly 25%. It has seen a subscriber growth rate of
over 200% in the last year, and since the start of 2005 it added nearly 5 million subscribers onto
its network. A remarkable achievement indeed, especially considering the fact those two new
international players also entered into the market in 2005. While keeping its tradition of being
the trend setter in the industry, Ufone changed the image of mobile phones from a luxury only
affordable by the elite, to a necessity affordable by the common man. Also they increased their
focus on the youth segment (which comprises 50% of the population), with the Prepay brand.
Ufone has the ability to retain its existing customer base with a high level of customer
satisfaction via optimum network service and a 24 hour call center facility. It has the post paid
service that is normally to attract the Business class people. As a result, most of the business and
elite class people use post paid and other services offered. Ufone has a subscriber base of 18.97
million as of October 2008. It was the first cellular Company in Pakistan that introduced the
service of GPRS and hence took the competitive advantage. They have offered some exciting
and energetic SMS packages that make SMS almost free. They are offering Rs. 25, Rs.50,
Rs.100, Rs. 150 SMS packages which its subscribers really love. Moreover, it has some very
exciting and low call packages like 5 ka 15, u-one, ucircle, Ufone ghanta, life package
and prepay Public Demand etc which attracted lots of customers towards it and also many
other cellular company users are also switching to it. Moreover, Ufone post paid is also offering
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black berry set that is useful and tempting for the Business class. It currently caters for
international roaming to more than 195 live operators across 119 countries and introduced
International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United
Arab Emirates, Singapore, Portugal and Kuwait with lowest rates, featuring no security deposit
and activation charges. GPRS Roaming facility is available with more than 75 Live Operators
across 59 countries.

Internal deficiencies
Ufone does not have the proper lists of its customers. It has the list but this list is not authentic
which is increasing the unauthorized use of its sim specially pre pay. They have to take serious
steps to properly list its customers to ensure that there is no misuse. It has many franchises in the
whole country but as its customers are increasing day by day so its present franchises are not
enough to fulfill the needs of its customers. It also faces problems and its network get jammed on
special occasions like Eid, Christmas, New Year etc. moreover, Ufone has the problem of voice
quality. Though its coverage area is vast and it covers more than 750 towns and cities in Pakistan
but the voice quality is not as good as it should be. Ufone though has some unique and distinct
services but it has not yet given many innovative services as compared to other cellular
companies. It was the first to introduce the SMS packages but their packages are not flexible
enough and its charges are only on monthly bases while it should be on both monthly and daily
basis. Also, Call rates from Ufone to Ufone are very cheap but to other networks its rates are
expensive. Its coverage on Southern part of Pakistan is quite good but in northern areas is a bit
poor. In Ufone web support is not available. Its customers service staff needs training because at
many franchises their employees have been complained about behaving rudely. If they have to
progress and grow in market it has to improve its advertising campaign as it is noticed that their
advertisements are not good and eye catching. Along with it, being the part of PTCL it has to
face many problems like strike by employees etc.

When Ufone came into the scene in Pakistan cellular market, Mobilink was already prevailing in
the market and it was all Mobilink monopoly that time. Though with the passage of time Ufone
took many customers but still Mobilink has large number of users because it was first to
Pakistans cellular market and this is the competitive disadvantage to Ufone.
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Moreover, it is plagued with some internal problems like when it is privatized to Etisalaat, being
the part of the PTCL many employees were not happy with the pay scale that they were offering.

External circumstances
Ufone could develop some new and innovative services to attract customers and some of the
suggestions will help them to increase their revenues. It should introduce International SMS
packages like local SMS. Already Ufone is offering lowest International SMS rates but if they
introduce some package like this it will get lots and lots of success. Moreover, They should also
introduce some International call packages to Middle Eastern countries because there are lots of
Pakistanis who are living in those countries so people will definitely be tempted towards such
package. Also, In Ufone ghanta package, time of the package should be extended to two more
hours so that more & more people will use this service and as result will help to generate more
revenues. They should develop some new franchises in remote areas so that people will get more
and more benefit from it and will help to increase their customers. Pakistan Youth is almost 50%
of the population so Ufone can take advantage of this demographic situation and should
introduce more and more services and packages that attracts youth towards it. Also, they should
extend its network coverage area to Northern part of the country as well because in that part not
too many companies are offering services and if Ufone offers its service there then it will
definitely attract people and number of customers will shoot. It should also introduce some
packages for internet users on mobile because if it does so, then many people will switch from
other networks towards it. Along with it, If Ufone enhances its voice quality then definitely it
would be preferred more by customers.

Also, they should import technological equipments from China because they are giving the best
technology at very low rates so it will not only help Ufone to be ahead technologically, but also
will help Ufone to decrease its cost. Ufone can surprise its competitors by introducing Ufone
kiosk. These will be ATM like machines that will give 24-hour service to Ufone subscribers to
load the balance just like they take money from an ATM.

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External threats
Ufone is a cellular company and there is cut throat competition in the prevailing industry. There
are six other companies also working in Pakistan so Ufone would have to face some growing
competitive pressures. Also, Pakistan is facing some serious economic problems nowadays
which would directly affect Ufone as the current recession in the market is not good for any kind
of business including telecommunication. Along with it, in Balochistan and FATA, where Ufone
already has a network coverage, is in danger because of the critical situation and operations
being held there. Therefore, Investment of Ufone is in danger. Ufone penetrated in market from
2005 to 2006 quite rapidly but since then it is experiencing a bit slower growth due to market
saturation and moreover by the arrival of China Mobile Company (Zong) in cellular industry of
Pakistan Ufone and other companies now have to face the severe competition, as Zong has
introducing some various attractive packages of both SMS and calls to attract customers so now
Ufone has to develop strategies to remain in the market. The key threat to Ufone is adverse
Government policies of Taxation on telecommunication industry that will ultimately affect the
revenues furthermore being the subsidiary company of PTCL, Ufone will also be affected by
Telenor who is giving a higher rumenration to its employees as compared to U fone so many of
its skillful and competent employees are going there. Some Pressure groups are protesting on the
Towers that are installed in residential areas, their opinion is that it is not good for health to have
such towers near their homes that emit radiations. Ufone has to revise the list of subscribers who
are legal and authorized Because now the Government has warned to take strict action if any
company would not keep such record.

Main Problem
As per the identification of problems the first thing I would like to highlight is the staff appraisal
issues which do not have a legitimate system, due to which at times deserving are denied of
credit. Its always the one who is in front not because of his work but the one who is good in
keeping social relations while the one excellent at work goes unnoticed just because he
prioritizes work first and somewhat ignores the social relations. This kind of appraisal system
hinders further efforts from the employees side as if one knows no matter what he does but still
it would go unnoticed in the eyes of senior management one wouldnt try.
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The second major problem I witnessed, though this was my project as well and at the end this
was eliminated was lack of records now a PO (purchase order) is a document which is often
needed and a proper record has to be maintained but what I saw was a completely opposite
situation, Pos were lying below the desks of every employee not filed nor scanned due to which
every day a new problem was born more intense than the previous one. This was actually
disappointing since documents have to be in a proper shape and order since they are needed
regularly and come in handy during the audits.






















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Recommendations

During my internship period I noticed few things which in my opinion if taken into consideration
can improve the performance of the department,
First thing which I would like to mention here is that negotiation with venders is a procurements
task due to which ufone has the department, so it should be left alone, now what happens is that
end user when raises a PR, they also give a call to the venders and negotiate the price which
means elimination of procurement. This results in a lot of shattered motivation and long talks,
since the price quoted by a vender is already final so what would an procurement official do and
his performance depends on the savings he make which motivates him to try and save the most
out of the allocated budget.
Moreover it also irritates the venders when different people call for a same purpose and an
important issue is that price is always kept secret as per the international standards also because
no vender would want his price leaked to his competitors because in this case price is the only
tool which can give you a competitive advantage and if leaked this can mean lost business, but in
ufone price is not only kept with the procurement department but end user also has the complete
information. Now below mentioned are some advantages if this recommendation is
implemented:
Best Price (as a procurement executive one would posses more negotiation skills and
experience)
Vender trust (as he would know that his quotes do not travel in the whole office but is
kept with only the procurement executive he talks to)
Convenient (as venders would not be bothered again and again and negotiations can be
held in a pleasant atmosphere)
No Kickbacks (since only a single employee would be responsible this would reduce the
risk of frauds and personal interest and even if something happens, it would be easy to
trace what went wrong)
Motivation (as mentioned above as well that performance of the procurement staff
depends on the savings which results in motivation)
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Department performance ( as what employees do individually reflects on the whole
department so if individual performance increases it would boost up the department
performance)
Further more in my opinion ufone should also consider the competitors policies and the way how
they operate before making a policy for themselves because loop holes can be there and by
referring to the competitors which can be traced and solved. There are some things which
company does not want to disclose like what if a vender goes to mobilink and tells them that he
also has business with ufone and currently at this price, now this is something ufone would want
to keep with themselves, and by looking how competitors tackle this issue can generate a more
effective solution.
In my opinion negotiation is an art, though majority employees are good at it but still I think that
further polishing would be beneficial, employees should be sent on workshops about negotiation
and presentation skills which would update them and increase their confidence level which will
have a positive impact on the department.
Moreover though this problem lies with all the companies but I would like to quote it, in my six
weeks I have noticed that at ufone one has to bring himself in the lime light, if one does not stand
and yell about his achievements he goes unnoticed which is partially wrong because I agree that
a manager cant have an eye on everyones day to day operations and though it is the
responsibility of an employee to aware his superiors about his achievements but still he
shouldnt be unnoticed, if an employee does not stand and yell but achieves a lot he shouldnt go
unnoticed though convinced to present.
The last thing I would like to recommend is that currently end user does not have any knowledge
about IT which in my opinion is wrong; since they raise the PR they should have the basic
knowledge of what they are ordering. They can be sent to workshops or trainings so they at least
have a clue of what are they ordering and are aware of pros, cons and alternatives.



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Learning objectives
What was accomplished through this affiliation?
The following were the accomplishments of this internship:
Ability to communicate the unique marketing mixes and selling propositions for specific
product offerings.
Ability to construct written sales plans and a professional interactive oral sales
presentation.
Ability to analyze marketing problems and provide solutions based on a critical
examination of marketing information.
Ability to apply knowledge and skills to real-world experiences in an internship. Note:
Specific outcomes will vary by assigned internship experience.

Ability to use business tools.
Ability to communicate effectively.
Ability to apply knowledge of business concepts and functions in an integrated manner.
Ability to work effectively in teams and/or groups.
Ability to manage people, processes, and resources within a diverse organization.
Ability to apply knowledge of key leadership concepts in an integrated manner.

Facets of my responsibilities
After 4 weeks of my internship I got hold on many things and thats where 2 new interns came
in, sir Nadir called me in his office and said Umaid now I want you to be an intelligent guy and
manage the new interns, you have worked a lot now its your time to relax and pass on the orders
and get work done from them though at first it felt good moving on the reputation ladder but
soon I was clear that doing work is easy but actually extracting it is much more difficult, that day
I understood why a company pays more to an employee who is sitting on a chair whole day
passing orders.
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The other one I would like to mention at this point is when I was required to give calls to venders
for their bids, that was an experience of a lifetime, even though the due date was after five days
but since I had to convince them to send in their bids early so the project can be started early
because it was an important one and we were short on time. It was really hard to persuade the
venders since it would put them in trouble taking all the hassle and submitting the bid early now
of course I couldnt harshly command them so all what I was required of was to talk in an
authoritative tone yet being respectful and persuasive.
Implementation of course knowledge
There were many events in which the courses I had studied came handy, though when I was
studying them, they didnt sound important but later on I realized the importance. To start the
course of oral communication and English two really helped me oral communication helped me
enhance my communication skills which are extremely important in corporate world as if you
cant effectively tell what you have done till then you dont get points where as in eglish we were
thought how to compose formal letters and emails along with the does and donts which really
helped since on an average ten to fifteen mails have to sent on regular basis so one cant just sit
there and take twenty minutes to compose a mail, it has to be done quickly so one should be
good at writing skills which I picked up from English course. Moreover I studied conflict
management in which there was a chapter on negotiation and since procurement is all about
negotiations so it helped me a lot.

How was this internship destined to impact your career?
This internship really helped me understand the corporate world and especially procurement
procedures, highlight being tendering and invoicing. Presently companies want a trained
employee which they can polish further but they tend to avoid the training sessions so if in
future I ever get a chance to work in a procurement department I wont need much training
which would give me a superior position and a competitive advantage over the other candidates.
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Any other comments you would deem appropriate and relevant.

At last I would like to thank Bahria for making internship compulsory in order to attain a degree
since I believe that if it wasnt imposed I would never have wanted to enter into practical life
which seems harsh and tough. Whereas now I regret the previous summer holidays and wish that
time could swing back and I could intern. This internship have impacted me in many ways but
most important being a glimpse of practical life and now seeing that glimpse I wish I could be in
the whole picture soon, I just cant wait to step in my practical life.














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Annexure

The following is the document list attached:
Bahria Intern evaluation form
Ufone Intern evaluation form
Transcript
Internship Letter
















Page | 22


Hierarchy at Procurement Department
CEO


Deputy CEO


VP Procurement


HOD


Manager procurement


Assistant Manager (AM)


Senior Executive


Executive

Interns
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The Process

The process starts where procurement department receives an approved Purchase Requisition
(PR) from the end user (a term used for the person or group who raises the PR), PR refers to the
items which are required by some other department, like if X needs a pencil so he would raise a
PR, get it approved and send it to procurement and since he raised the PR he would be the end
user in this case.
When the PR is received procurement checks the budget of the project, if it is below 5Million
RFQ is floated and if above it RFP is floated. RFQ stands for request for quotation which is only
floated to the registered venders and is not advertised publically and venders are required to send
their bids in response whereas RFP stands for request for proposal in which tender is floated
publically and any interested vendor can submit their bid along with all the respective
documents.
This RFP or RFQ goes for approval in which time is also specified.
After approval Venders are informed that they need to send their quotes. At least 3 quotes are
needed so a good comparison can be made but it depends at times more than 3 and at times even
less can work.
After quotes are received a comparison sheet is made (CS) and then it is analyzed.
Lowest quote becomes a bench mark and negotiation starts and after negotiation with all venders
which can extend to many quotes the lowest is selected (of course other factors are also
considered and at times second or third lowest quotes are considered but price though is one
major issue).
After the selection a Purchase Order (PO) is created which is sent for acknowledgement to the
venders.
When Acknowledged PO arrives this means now vender exactly knows what is required with
respective details and quantities.
After this step the end user team leads and is responsible.
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Procurement department then again comes to life when a project is completed and the invoicing
portion has to be started.
Invoice is verified by the end user and as a next step approval from the VP is required.
After approval Goods Received Note (GR) is made and the invoice is submitted in the finance
department.
Finance department then gives the cheque to the procurement department, after which venders
are called by the procurement department and cheques are handed over and the case is closed.















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References

http://www.ufone.com
http://www.scribd.com