A manufacturing company’s procurement department has a team of 7 people. All the procurement work is jointly done by this team. In order to bring efficiency, purchase manager decides to separate the team into two. One team (team of 4) will focus on raw material purchases and other group (team of 2) will focus on expense or employee purchases.
Raw material purchases are primarily sourced from three suppliers (Supplier A, Supplier B and Supplier C). All the Raw materials are purchased from supplier A and supplier B where packaging materials are procured solely from supplier C.
Expense purchase or employee purchases require the employee’s supervisor approval. The supervisor approval is set to single level only.
Only approved request will come to purchase department. In order to bring more control in purchasing department, especially expense or employee purchases. One of the buyer (junior) has approval limit upto USD 10,000 where senior buyer has approval limit (upto USD 50,000). Expense purchase that require more than USD 50,000 has to be approved by purchase manager.
Pls. describe how best we can map above requirements using Oracle Purchasing (R12).