Procurement Cycles at

Fakir Apparels Limited

An assignment for Management Trainee Program

SUBMITTED TO:
Mr. HASNAT
Human Resource Department
Fakir Apparels Limited
E-Mail: hasnat@fakirapparels.com

SUBMITTED BY:
S. M. SHORIF HASAN
MBA, University of Dhaka
E-Mail: shorif.career@gmail.com

Date of Submission: 26 April, 2015

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PROCUREMENT CYCLE
Procurement Department
Fakir Apparels Limited

Procurement is the acquisition of goods, services or works from an external source. It is

favourable that the goods, services or works are appropriate and that they are procured at the best
possible cost to meet the needs of the company in terms of quality and quantity, time, and
location.
This acqusition takes place in a process called procurement process. There are seven steps of
procurement process in Fakir Apparels Limited . These are following:

1
2
3
4
5
6
7

Here is brief description of these procurement steps.

Need Analysis: Procurement cycle starts with need analysis. At this stage what are needed to
procure is determined considering the existing and projected order, quantity, technical or
commercial description, quality, price and any requirements from master buyers. To conclude,
purchase projection is articulated at this time.
Sourcing / Vendor Enlistment: Second stage is sourcing that is from where we are going to
collect the materials. At this stage we make a list of all possible suppliers wheather they are local
or international. At this time we must conform to need analysis.
Issuance of Purchase / Work Order: On the third steps procurement department places order
to selected vendors considering mutual agreed conditions. The formal way to place order is to
issue purchase / work order in a prescribed format.
Issuance of Payment Method: After placing any order procurement department gets
Proforma Invoice (PI) from vendors with mentioning products details like quantity, price,
product description, delivery lead time and all others conditions of purchase. Then procurement

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PROCUREMENT CYCLE
Procurement Department
Fakir Apparels Limited

department makes arrangement to pay for the order in any payment method like Letter of Credit
(L/C), Telegraphic Transfer (TT), post-dated cheque (PDC) whichever is applicable.

Monitoring Material Receiving

Evaluation of PO/WO & Vendor Assessment

Follow Up Order

Procurement

Issuance of LC/TT/PDC

Need Analysis

Issuance of PO/WO

Sourcing/ Vendor Enlistment

Continuous Follow-Up with Vendors: Procurement department maintains follow-up with

vendors continuously to get the ordered materials on time . To follow-up jobs it uses phone calls,
e-mail or physical visits to vendors offices or factories if necessary.
Monitoring Material Receiving: At this stage procurements department monitors materials inout, quality , delivery services at the warehouse. Morever it tracks what are the conditions of
receiving material according with purchase order. If any deviations is found necessary steps is
taken to solve the problems.
Evaluation of Purchase / Work Order & Vendor Assessment: At the final stage it is time to
evaluate purchase decision whether it is effective or not. Morever vendor assessment is done at
this last stage. How is vendorss product quality , delivery lead time, compensation packages and
how vendor response to follow-up services are analysed to make a overall assesment of vendor.
These are the procurement process involves in Fakir Apparels Limited. It is formal outline of all
duties of procurement department. The objectives of procurement is to procure material at low
cost, quality, on time, maintaining shipments deadlines and financial condition.
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