1. Identify the need
Purchasing should start with a real requirement: stock replenishment, a customer job, a manufacturing material or an operational item.
Capture enough context that someone reviewing the order later can understand why it was placed.
2. Select the supplier and expected terms
Choose the supplier and confirm the products, quantities, expected prices and delivery expectations before issuing the order.
For recurring items, historical purchasing information can help staff identify unusual price changes or duplicated orders.
3. Create and approve the purchase order
The purchase order becomes the business's controlled instruction to buy. Use a consistent numbering and approval process appropriate to the size of the business.
Small businesses may use a simple manager approval while larger operations may need thresholds or role-based approval.
4. Receive against what was ordered
When goods arrive, compare the delivery with the purchase order. Record actual quantities received and note shortages or differences.
Receiving should update the relevant stock or material records rather than leaving the physical delivery disconnected from the system.
5. Resolve differences
Price, quantity and item differences should be investigated rather than silently adjusted. This helps prevent repeated supplier or internal errors.
Keep supporting documents associated with the purchasing trail where practical.
6. Review purchasing patterns
Over time, the purchase history can show which suppliers are used most, which items are frequently reordered and where buying decisions may need attention.
A structured process therefore supports both daily control and better management decisions.