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Comprehensive Guide

Procurement Management Guide

Master the complete procurement workflow from requisition to goods receipt in Laabam.One.

45 min
Procurement

Procurement Overview

Laabam.One's Procurement module provides a standardized workflow to manage your purchasing cycle efficiently, ensuring transparency, control, and cost savings.

  • ✅ Streamline purchase requisitions
  • ✅ Manage Request for Quotations (RFQ)
  • ✅ Compare vendor quotations
  • ✅ Create and track purchase orders
  • ✅ Record goods received notes (GRN)
  • ✅ Maintain vendor relationships
  • ✅ Control procurement spending
  • ✅ Ensure quality of received goods
  • ✅ Improve audit compliance
  • ✅ Optimize inventory levels

Procurement Workflow

5 minutes

The Standard Procurement Process

Understanding the procurement workflow helps streamline purchasing and maintain control over spending.

Standard Procurement Flow:

  1. Purchase Requisition: Employee requests items needed
  2. Approval: Manager/Department Head approves requisition
  3. Request for Quotation (RFQ): Send RFQ to potential vendors
  4. Vendor Quotations: Collect quotes from multiple vendors
  5. Quotation Comparison: Analyze and compare vendor offers
  6. Purchase Order: Create PO for selected vendor
  7. Order Tracking: Monitor delivery status
  8. Goods Received Note: Record receipt of goods
  9. Quality Check: Verify quality and quantity
  10. Invoice Processing: Match invoice with PO and GRN

Following the complete procurement workflow ensures proper controls, better pricing, and audit compliance.

Purchase Requisitions

10 minutes

Creating Purchase Requisitions

Purchase Requisitions are internal requests for items or services needed by employees or departments.

Steps to Create a Requisition:

  1. Navigate to Procurement → Requisitions → Purchase Requisitions
  2. Click + New Requisition
  3. Enter details: Title, Department, Required Date, Purpose
  4. Add items: Name, Quantity, Unit, Price, Budget Code
  5. Attach supporting documents or specifications
  6. Review total estimated value
  7. Click Submit for Approval

Requisition Approval Workflow:

  • • Department Head approval for standard requests
  • • Management approval for high-value items
  • • Automatic notification to procurement team
  • • Rejection feedback for incomplete requests

Tracking Requisitions:

  • • Monitor status: Draft, Pending, Approved, Rejected
  • • Link to RFQs or POs directly
  • • Generate fulfillment reports

Submit requisitions well in advance to allow time for approval and procurement processes.

Request for Quotations (RFQ)

10 minutes

Creating and Managing RFQs

Request for Quotation allows you to solicit competitive quotes from multiple vendors.

Steps to Create an RFQ:

  1. Navigate to Procurement → Sourcing → RFQs
  2. Click + New RFQ (or create from approved requisition)
  3. Set deadline and delivery requirement dates
  4. Add technical specifications and quality standards
  5. Select vendors (minimum 3 recommended)
  6. Review terms and conditions
  7. Send RFQ to selected vendors

RFQ Features:

  • • Direct email integration with vendors
  • • System tracking for all sent RFQs
  • • Automatic deadline reminders
  • • Response tracking dashboard

Always get quotes from at least 3 vendors for best pricing and terms comparison.

Vendor Quotations

8 minutes

Recording Vendor Quotations

Capture quotations received from vendors in response to your RFQs.

Entering a Vendor Quotation:

  1. Navigate to Procurement → Sourcing → Vendor Quotations
  2. Link to the corresponding RFQ
  3. Enter vendor reference and validity dates
  4. Input item pricing, taxes, and delivery charges
  5. Specify lead time and payment terms
  6. Upload vendor's original quotation document

Managing Quotations:

  • • Track status: Received, Under Review, Selected
  • • Monitor validity to avoid expired offers
  • • Maintain vendor communication history

Quotation Comparison

7 minutes

Comparing Vendor Quotations

Analyze and compare multiple vendor quotations side-by-side to make informed decisions.

Using Quotation Comparison:

  1. Navigate to Procurement → Sourcing → Quotation Comparison
  2. Select the target RFQ for comparison
  3. Analyze Unit Prices and total costs
  4. Compare Lead Times and Payment Terms
  5. Review Warranty and Vendor Performance
  6. Identify the winning vendor and generate report

Evaluation Criteria:

  • • Price: Total landed cost including charges
  • • Quality: Compliance with technical specs
  • • Delivery: Reliability of delivery timelines
  • • Terms: Favorable payment conditions
  • • Service: After-sales support and warranty

Don't always choose the lowest price. Consider total value including quality and reliability.

Purchase Orders

12 minutes

Creating and Managing Purchase Orders

Purchase Orders (PO) are formal documents sent to vendors to order goods or services.

Creating a Purchase Order:

  1. Navigate to Procurement → Orders → Purchase Orders
  2. Generate PO from selected vendor quotation
  3. Verify delivery and billing addresses
  4. Review line items, pricing, and taxes
  5. Add special delivery instructions
  6. Submit for approval and send to vendor

PO Status Tracking:

  • • Draft / Pending Approval
  • • Approved / Sent to Vendor
  • • Confirmed by Vendor
  • • Partially Received / Completed
  • • Cancelled or Closed

Always get written confirmation from the vendor on PO acceptance and expected delivery date.

Goods Received Notes (GRN)

10 minutes

Recording Goods Receipt

GRN is created when you receive goods from vendors, verifying quantity and quality.

Creating a GRN:

  1. Navigate to Procurement → Receiving → GRN
  2. Select the related Purchase Order
  3. Enter Delivery Note Number and vehicle details
  4. Verify Received Quantity vs. Accepted Quantity
  5. Perform quality inspection and record defects
  6. Upload inspection reports or photos of issues
  7. Submit GRN to update inventory levels

Handling Rejections:

  • • Record rejected quantity and reasons
  • • Create Purchase Return documents
  • • Notify vendor for replacement or credit note

Always perform quality inspection before accepting goods. Once GRN is submitted, inventory is updated.

Quick Actions

3 minutes

Using Procurement Quick Actions

Quick Actions provide shortcuts to frequently used procurement tasks.

Available Quick Actions:

  • • New Purchase Requisition
  • • New Request for Quotation
  • • New Purchase Order
  • • New Goods Received Note

Use Quick Actions from any page within the module for faster data entry.

Best Practices

  • ✅ Plan ahead to allow sufficient lead time
  • ✅ Get at least 3 competitive bids for best value
  • ✅ Provide clear specifications in all RFQs
  • ✅ Document all vendor communication and files
  • ✅ Always perform quality checks on receipt
  • ✅ Record GRNs immediately to keep inventory accurate
  • ✅ Evaluate vendor performance periodically
  • ✅ Monitor spending against budgets monthly

You've completed the Procurement Module guide!

You now have comprehensive knowledge of the complete procurement process in Laabam.One ERP.

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