What is direct shopping? Detailed direct shopping process

Currently, the popular form of purchasing chosen by many businesses is direct shopping. In the article below, 1C Vietnam will introduce to businesses specific information about the concept and detailed and effective direct procurement process .

1. What is direct shopping?

Direct shopping is a form of buying goods and services directly from suppliers, without going through intermediaries or partners. The entire procurement process from finding suppliers, negotiating contracts, placing orders, receiving goods, and controlling goods or services is implemented by the business itself.

2. Benefits of direct shopping for businesses

Direct shopping brings many benefits to businesses including:

• Build relationships with suppliers: Direct shopping helps businesses build good relationships with suppliers. This helps businesses find reputable suppliers, saving time and effort.
• Price negotiation and agreement: Direct purchasing allows businesses to negotiate and negotiate prices, thereby being able to buy preferential prices when imported in large quantities.
• Product quality control: Purchasing products directly from suppliers helps businesses better control quality, ensuring products meet standards.

3. Direct procurement process of businesses

A business's direct procurement process is a series of steps taken to procure products or services from a specific supplier. This process may vary depending on the regulations of each business and type of business. Below is a basic process that many businesses often use when shopping in person:

3.1. Step 1: Determine shopping needs

The first step of the direct procurement process is to identify the needs of the business. This includes determining the specific product/service to be purchased, its quantity, quality and related technical requirements.

3.2. Step 2: Search for suppliers

After determining the need, businesses need to find suitable sources of supply. This step can be done through a variety of methods such as consulting current suppliers, searching online or participating in a supply network.

3.3. Step 3: Determine your budget

When making direct purchases, businesses need to set an expected budget based on needs and financial capacity. This includes weighing the cost of procurement and the quality of the product or service.

3.4. Step 4: Create a shopping offer

A procurement proposal is a formal document used to request the purchase of goods or services. This proposal must include the following information:

• Need: A detailed description of the goods or services to be purchased.
• Supply sources: List of potential suppliers.
• Budget: The amount of money expected to spend on a purchase or service.

Procurement proposals are often sent to departments with approval authority, such as management or the finance department. These departments will review the proposal and make a decision on whether to approve it or not.

3.5. Step 5: Compare and choose suppliers

To choose the right supplier, businesses need to compare offers from different suppliers based on the following factors:

• Price: Is an important factor to consider when choosing a supplier. Businesses need to ensure they choose a supplier with competitive prices but still meet their needs.
• Quality: Businesses need to evaluate the quality of products/services of suppliers based on criteria such as durability, features, aesthetics,...
• Delivery time: A factor of concern for businesses that need to use products/services immediately or in a short time.
• After-sales support: Is a factor that helps businesses solve problems that arise during customers' use of products/services.

After comparing the above factors, businesses need to choose the supplier that best suits their needs and budget.

3.6. Step 6: Make a purchase

To make an official order, businesses need to contact the selected supplier. In the order, businesses need to provide complete information about the product/service to be purchased, quantity, price, payment method and other terms. After confirming the order, the supplier and business will negotiate the delivery time as well as specific terms related to the contract.

3.7. Step 7: Receive goods and pay

Receiving goods and payment is an important step in the process of buying and selling goods. To ensure successful delivery and payment, businesses need to perform the following main tasks:

• Receive goods from suppliers and check order quality: Businesses need to check whether the goods are of the correct type, quantity, quality and delivery time according to the contract. If any problem occurs, the buyer needs to make a record of the incident and notify the supplier for resolution.
• Payment according to the terms agreed in the contract: Payment methods can be cash, bank transfer or card payment. Enterprises need to pay the full amount according to the signed contract.

3.8. Step 8: Monitor and evaluate

Regularly monitoring and evaluating products/services will help businesses detect problems early and improve product/service quality. This is the basis for businesses to improve customer satisfaction. This process includes two main steps:

• Track product or service performance: In this step, businesses will collect data and information about product or service performance, such as customer satisfaction, number of orders , refund rate,…
• Supplier evaluation: This is a step for businesses to evaluate whether the supplier has met its commitments on quality, delivery time, and customer support.

3.9. Step 9: Store information

Storing procurement process information is an important job to ensure the transparency and efficiency of this activity. All information related to the procurement process from procurement needs, quotations, contracts, acceptance minutes, contract liquidation,... all need to be carefully stored.

Stored information needs to be complete, accurate and easily accessible for future use or audit purposes. The storage time for procurement process information is usually a minimum of 3 years, depending on legal regulations.

4. Effective purchasing management with 1C:Company Management software

1C:Company Management software is a comprehensive business management solution, developed by 1C Vietnam company. The software provides the necessary features to automate business activities within the enterprise, including production, purchasing, finance and accounting, human resource management, customers,... In addition, the software The solution can be customized to fit the specific needs of each business.

1C:Company Management's purchasing management subsystem provides superior and outstanding features to help businesses effectively manage purchasing activities, including:

• Supplier management and quotes: Businesses can easily manage detailed information about suppliers, including name, address, contact information, business type, product and service categories offers, payment policy, delivery, transaction history. In addition, 1C:Company Management also provides a quote feature, helping businesses compare prices from many different suppliers to choose the best cost.
• Calculate the need for materials and goods: 1C:Company Management supports businesses to easily calculate the need for materials and goods to purchase based on data such as forecasting consumption demand, quantity of inventory, quantity of goods sold.
• Set up and manage purchase orders: Users can create, edit, delete purchase orders, track purchase order progress, thereby saving time, effort, and avoiding loss of goods and costs. .
• Purchase analysis: Businesses can analyze purchase data, including number of orders, number of items, purchase value, purchase cost to evaluate the effectiveness of purchasing activities and identify errors. problem needs improvement.
• Receiving payments and orders: With the purchasing management module of 1C:Company Management, businesses can receive payments and orders quickly and accurately. This is a favorable basis for the company to strictly manage sales and revenue and expenditure activities.
• Intuitive purchasing reporting system: Businesses can easily capture information and make effective business decisions through purchasing reports presented in the form of tables, diagrams,...

Thus, the direct procurement process needs to be built clearly and specifically to ensure openness, transparency and efficiency in business operations. In addition, businesses can use software to support automatic purchase management. For consulting support on effective purchasing management software suitable for the specifics of your business, please contact 1C Vietnam immediately!