Project Management Issue Purchase Order

The first process initiated to purchase product from a supplier is the creation and issue of a Purchase Order.

Identify Required Product

The Procurement Manager identifies the products to be purchased and the respective supplier from the Procurement Plan. They also identify the timeframes within which the products must be delivered and the level of quality that each product should adhere to.

Document Purchase Order

To request product from an external supplier, the Procurement Manager must complete a ‘Purchase Order’ project management template form. This form lists the specific product required, the components, delivery timeframes, delivery address and project cost centre to be charged for its purchase. A Purchase Order form may be completed for several products, but only for one supplier. It is important that the Purchase Order is completed well before the required delivery date to give the supplier the maximum notice period possible and therefore increase the likelihood of the delivery occurring on time.

Approve Purchase Order

The Purchase Order is then forwarded to the Project Manager for approval. The Project Manager will consider the following criteria prior to approving the form:

- Is the product listed as a required product within the Procurement Project Plan?
- Is the product defined in sufficient detail for the supplier to interpret the requirement?
- Is there likely to be sufficient time for the supplier to deliver the product and meet the timeframes outlined within the Procurement Plan?
- Does the project have a contractual relationship with the supplier?