Roodepoort
Ensure stock by placing orders across the various line items, constantly monitoring sales to ensure that new purchase orders are placed against current sales orders. To ensure that the pricing is negotiated and that company is always paying the best possible price. To monitor status reports with the freight forwarder and ensure that the rates are in line with industry standards. Once the material is received, photos would need to be taken, damages recorded and quantities checked to ensure what was ordered has been received. To notify supplier of damages and claim compensation if it is outside of the damage’s tolerance. To ensure that payments made match invoices received which are in line with the quantities unpacked.
Creating purchase orders
1) Create a purchase order with the quantities of various products which need to be ordered, based off previous year’s sales, lead times, expected growth and safety stock. Create re-order points and ensure ordering is checked regularly.
2) Check pricing against previous orders and negotiate the best possible price for the current order.
3) Check that both space and weight are full to ensure we are not shipping “Air”.
4) Terms and conditions noted on the purchase order and supplier to sign.
Placing the order
1) Bring the purchase order to Dale for sign off and place the order with the overseas supplier.
2) Ensure that lead times with the supplier are kept to.
3) Notify the shipping agent of the order and ensure constant communication so that leads times are adhered to and vessels are booked accordingly.
4) Check freight rates are in line with industry norms and all bookings reflect on the status reports.
Monitoring orders
1) Monitor orders on the status report and ensure that you are satisfied that the orders placed will be sufficient for the demand on the sales side. This monitoring process should happen across each line item twice a week.
2) Approximately 1 week before the order is due in the Vat and Duty is paid directly to SARS, double checking the Vat and Duty amounts are correct and documents handed to Petro to ensure they are loaded for payment.
Receiving orders
1) Once a shipment has been received, monitoring the unpack by taking photos of any damages and compiling a report with container numbers, damage quantities and photos for each shipment.
2) Ensure that the quantities received match the quantities ordered.
3) Ensure that the outstanding amount owed is correct based on the quantities received, also that the commercial invoices pricing matches the pricing on the pro forma invoice.
Costing material
1) Once order has been received, check invoice of shipping line and invoice of supplier to ensure the correct price has been charged. Ensure correct duty has been charged. Provide the directors with a costing for sign off, in order for stock to be posted to Pastel.
Reports
1) Records need to be maintained at all times and a file created for each shipment which contains, the signed off purchase order, the pro forma invoice from the supplier, the deposit amount paid, the balance amount paid, the damage report, the costing sheet, the SAD500 certificate and any additional notes that are relevant. The completed file is stored for safe keeping.
2) Occasionally the SARB will request documentation which will need to be sent to them. The documentation they require will be come from the completed file.
Repeating the process
The process would start again whereby you monitor that there is enough stock of the specific item on the water and due in, if not the new order will need to be placed. It is important as the buyer to recognise both a good steel price, shipping rate and rate of exchange to constantly try and achieve the best landed cost.
New items, if there is demand, improve profitability and you should therefore always be on the lookout. It is a difficult job to ensure company has sufficient stock quantities but is not too heavily stocked and therefore will take a lot of diligence, time and effort to ensure that the correct orders are placed at the correct time in order for the sales team to operate at their best.
