Each faculty of the university tends to have

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these services, as their rates are very reasonable. Each faculty of the University tends to have different needs. For example, the needs of the Arts Faculty are quite different from Engineering. It takes time to train Purchase Order clerks in certain supply areas such as specialized laboratory glassware, hazardous chemicals, archeological tools or Antarctic exploration vessels. It is not possible to train everybody in every kind of supply. ABC University have acquired a new campus. The campus was previously owned by Degree Warehouse Institute. ABC University took over them largely to acquire their customer and supplier base. Eventually ABC University wants to integrate Degree Warehouse Institute’s processes with their own, but in the meantime they have to run separately, but allowing all customers access to products of both. A small but growing number of suppliers are providing web service interfaces for the receiving of orders and payment of invoices. They expect their customers to reciprocate by providing web-services for receiving invoices. Horst Heckelhumfp, the ABC University Business Manager believes the institution should take advantage of these kinds of services, but he is getting advice from his IT consultant that the cost of reprogramming their applications would be prohibitive. Some Goods Receipt clerks often just rubber-stamp the validity of goods delivered because they believe the employee will check the goods. On the other hand, employees, under time pressure sometimes delay checking goods in the belief any problems would have been picked up in the Goods Receipt department. Horst Heckelhumfp, is aware that there are problems with the Equipment, Materials and Service Acquisition processes at ABC University. He has sought the advice of a number of process improvement consultants. He has stipulated that any new solution must work in conjunction with the existing ES system. He is concerned that new software will not interoperate with the old ES. As new budgets commence at the beginning of the financial year, there is a need to get all invoices paid before the end of the financial year while funds still remain. Accounts payable are always in a rush at that time of year. On the other hand , Accounts Payable bill students early in the calendar year.
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Horst Heckelhumfp, is aware employees must receive items in a timely manner, but he suspects that bulk procurement might offset the cost of warehousing for a limited number of common items. However, with the current system it is hard to prove the case for warehousing. If an employee from the Purchasing department makes a purchase requisition, he should not be the clerk who makes out the purchase order. Auditors have found some cases of corruption in other organizations. However, policing this rule has been difficult. Since ABC University acquired Degree Warehouse Institute, they run separate Purchasing and Accounting departments. Purchase requisitions and Invoices still go to the respective campus departments. However, the two campuses have slightly different semesters, so sometimes one campus department is overworked while the other campus is idle.
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  • Fall '19
  • invoice, purchase requisition, Goods Receipt Department

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