Requirement Gathering Questionairre: Procurement

In the Requirement gathering sessions the consultants will be collecting lot of information for understanding the current system. 

Below are some of the Questions you as a consultant may ask. You can adjust and remove the questions according to the context of the engagement. 

Your feedback is highly appreciated.

Procurement Questions	Type	Response	Revisit Y/N
How are RFQs presently handled, with respect to creation, transmittal, and approval?	Process
Are statistics kept on any purchasing, vendors or receipt information? If yes, price? quality? delivery? what types?	Metric
Who are your buyers?  How many are there?  Where are they located?	Setup
Are your buyers assigned to certain vendors or items?  How?	Setup
Are buyers assigned by part, commodity, plant, randomly, other?	Setup
What is the approval process for each buyer?	Setup
What are the purchasing limits for each buyer?	Setup
Does the buyer merge requisitions together for a single order?	Process
Is a buyer required to purchase from a requested vendor?	Setup
Can a buyer modify a PO or requisition without a corresponding change request / authorization from the requisitioner?	Setup
How does a buyer communicate a modified PO or requisition if no change request/authorization from the requisitioner is needed?	Process
How many expediters are there?	Setup
Will you be checking for available funds when creating your requisitions or purchase orders?	Setup
Do you want to reserve funds for your requisitions or purchase orders?	Setup
How do you define your encumbrance types?	Setup
Do you want to prevent someone from reserving funds if you do not have enough funds available?	Setup
Do all your companies/entities reserve funds?	Setup
Do you post receipt information for encumbrance accounting?	Setup
Do you create budgets for all your accounts?	Setup
Do you match your AP invoice with the PO's?	Setup
Do you match PO's with receipts?	Process
Do you perform 2, 3, or 4 way matching in purchasing?	Process
How often do you post to the General Ledger?	Process, Setup
Do you post summary or detail information?	Process
Are contracts on projects going to be used?  If so, will they be associated with a line item on a requisition or purchase order?	Process
What types of purchase orders do you use? (for example, Standard, Blanket, Contract and so on)	Setup
How do you define each purchase order type?	Setup
Who has access to defining each type of purchase order?	Setup
How many purchase orders do you issue monthly?	Metric
What is the approval process for purchase orders?	Process
How do you decide who to buy from?	Process
Do you take advantage of discounts or price breaks?	Process
Is purchasing centralized or decentralized in your organization?	Setup
If purchasing is decentralized, how many plants or locations do purchasing?	Setup
How many different formats do you have for printed purchase orders?	Setup
Obtain a copy of each type of PO format	Setup
Do you modify existing purchase orders?.	Setup
Do you use unit of measure conversion for PO’s?  If so, which ones?	Setup
What percentage of purchased parts are intended for manufacturing use?	Metric
What percentage of purchased parts are intended for non-manufacturing use?	Metric
What is the current process of creating a new purchase order for manufacturing use? (direct material)	Process
Do you create purchase orders from on-line requisitions?	Process
Do you want to control modifications to your purchase orders?	Setup
Do you want to close purchase orders before they have been truly received & invoiced?	Setup
Do you want to attach text to your purchase order?  How much?	Process
Do you automatically or manually create purchase order numbers?	Setup
What do you do when you want to stop purchasing from a particular vendor?	Process
How do you handle subcontracting?	Process
Is commodity class coding being used?	Setup
Are foreign currency conversions used? If so, how are exchange rates updated?	Setup
Do you want to be able to override the item description by document?	Setup
Do you enter purchase orders for items that do not require "receipting"?	Setup,Process
Do you wish to prevent purchase orders being sent to Vendors that are on hold in Accounts Payable?	Process
Are there non-payment vendor sites, not defined in Accounts Payable, that need to be defined for Purchasing to order goods/services?	Process
Are the non-payment vendor sites, not defined in Accounts Payable, that need to be defined for Purchasing,  "RFQ Only" sites?	Process
Are there payment terms, not defined in Accounts Payable, that need to be defined for Purchasing to order goods/services?	Metric
Will tax names and rates, defined in Accounts Payable, have to be revised in any way?	Setup
Do you want to prevent receivers from seeing the quantity ordered or quantity remaining to receive (blind receiving)?	Setup
Are items received directly into inventory?	Process
How are items delivered to the requester?	Process
Do you inspect items at receiving?	Setup
What are the rules on item inspection?	Process
Do you use a receipt amount or dollar amount tolerance?	Setup
Do you accrue your receipts to the General Ledger?	Process
Do you receive substitute items?	Process
How are items received?	Process
Do you issue requisitions?	Process
Are requisitions  automated or manual?  Explain.	Setup
How are  requisitions issued?	Process
What is the approval process for requisitions?	Process
Can the requesters approve their own requisitions?	Setup
What are the criteria for approval of requisitions?  Money, commodity, plant, budget, other?	Setup
What is the approval process for rejected requisitions?	Process
Who creates requisitions?	Process
Are requisitions entered in a central location or will they come from multiple locations?	Process
Is ordering done by part number, vendor part number, part number revision level?  description?  other?	Setup
Are requisitions combined for purchase order creation?	Process
Are vendors and prices always entered on the requisition or are not required?	Setup
Do you automatically or manually generate requisition numbers?	Setup
Do you order some items frequently enough to justify using express requisitions?	Setup
Can any employees potentially submit a requisition and/or PO? If not, what type of employees can? What percent of your employee base does this include?	Process
What goods or services do you order regularly?	Process
Do you use request for bids/quotations?	Process
How do you request for bids from your vendors?	Process
How do you enter quotations and other information from your vendors?	Process
How do you decide which quotations are available to reference on your purchase orders?	Process
Are quotations collected for all items to be purchased?	Process
How many RFQ's do you issue per month?	Metric
Do you obtain quotations from phone, catalogs or by other means?	Process
Do you maintain quotation history? How long?	Process
Are request for quotes automated?	Setup
Do you use unit of measure conversion for RFQ’s?	Setup
Are your RFQ's associated with requisitions or PO's? How?	Process
Do you keep track of price breaks on volumes?	Process
Do you want to be notified when a quotation is about to expire?	Setup
Do you require RFQ's before you create a purchase order?	Process
Who typically invoices an RFQ?	Process
What paperwork is involved to submit a requisition?	Process
Do you have single or multiple bill to locations?	Setup
Do you have single or multiple ship to locations?	Setup
Who maintains the vendor files, PO or AP?	Process
Do you have a single consolidated vendor list?	Setup
Do you have vendors listed in your files multiple times?	Setup
How do you handle vendors with multiple addresses?	Setup
Do you have preferred vendors?  How do you identify them?	Setup
How do you handle vendor numbering?	Setup
Do you put employees as vendors?  If not, how do you pay employee expenses?	Setup
Do you have a standard naming convention for vendors when the name is like "John Smith"?  Is it "Smith John" or "John Smith"?	Setup
Do you have shared vendors between companies?  How many?	Setup
How many vendors do you have?	Metric
Does commodity coding help identify vendors?	Setup
Are products purchased by one legal entity on behalf of another legal entity?	Setup,Process
If purchasing is decentralized, how many  operating units are required to support purchasing security requirements.	Setup
Are the purchase orders created from requisitions generated in other businesses?	ProcessSetup
Will different  businesses be supplied with the same items ?	Setup
Do you have a single consolidated vendor list, for each set  of books?	Setup
Do you autorelease to suppliers based on MPS?	Process
How do you cost the new product?	Setup
Do you usually have to buy new tooling for new product introduction?	Setup
Do you allow enough  lead-time for the planners and buyers to get in the correct material for the first production run?	Metric
Do you have central planning and purchasing functions?	Process
Do you ship products between sites?	Process
Do you drop-ship from your remote sites to customers?	Process
Do you use an internal requisition system?	Process
Do you use sales orders to ship against warehouse purchase orders?	Process
What is the average lead-time from requisition to delivery?	Metric
How many replenishment orders do you request at peak periods?	Performance