Steps in Generic Purchasing Style
First of all, the originator of the purchase requisition must fill in the necessary data on the form and get all the approval signatures. The requisition is then forwarded to the purchasing department.
Spending levels are regulated by the finance department. If the purchase requisition amount exceeds the approval limit, which is set by the manager, another approval signature must be obtained to authorize the purchase order.
After verifying that all the necessary information and approvals have been entailed, a purchase order number is assigned and the purchase requisition becomes an active purchase order (PO).
Upon receipt of the PO, the vendor initiates the paperwork required to send the product and/ or provide the service. Once the product is sent or the service is provided, the supplier will send a bill to the A/P department.
If a service is acquired, the PO originator has the responsibility for regulating installation requirements.
A/P will initiate a request for bill payment after the bill is received from the supplier and its receipt, for a hard goods item is acknowledged by the receiving department.
Finally, upon receipt of the payment approval from the originator, A/P pays the bill and informs purchasing that the PO activity has been completed.
Outsourcing and Insourcing in Telecommunications
A huge amount of nowadays companies choose outsourcing as an option in order to optimize financial and labor resources. The key principle of outsourcing is “I do everything that I can do the best, and the rest I leave to those who would do it the best”. Thus, the non-productive positions are eliminated, and it helps to improve profitability. These techniques are the elements of the basis for the success and steady development of any company.
Insourcing is the notion that is quite opposite of outsourcing. It is a business practice in which the assignments (work) that may be outsourced, is accomplished in a company.
The role of insourcing and outsourcing in the sphere of telecommunications is of essential significance. Originally, TC companies are interested in creating regional departments, and it becomes difficult to regulate some particular sphere of its activity (transportation, accounting, support service, etc), so these companies retort to outsourcing.
If some services that are generally outsourced appear to be too expensive (or uncomfortable to use outsourced), TC company is recommended to hold the insourcing process. These services are often transportation (if there is a strong necessity in operability), web content creation, IT-sphere, etc.