Procurement guides for manufacturers.
How indents, approvals, quotes, POs, GRNs and invoices should work in an Indian plant, written for the people who run them. Looking for one term? Try the glossary.
- Read the guideGuide · 9 min read
What is MRO procurement? A guide for Indian manufacturers
MRO is the spares, consumables and tools that keep a plant running but never end up in the product. Here is what makes it hard to buy well, and how purchase teams in Indian plants organise it.
- Read the guideGuide · 8 min read
Indent vs purchase requisition vs purchase order: what's the difference?
Three documents, often confused, carry a requirement from the shop floor to a vendor. Here is what each one is for, who raises it and what it must contain.
- Read the guideGuide · 9 min read
What is a GRN (goods receipt note) and how does it work?
The GRN is the store's record that goods actually arrived, in what quantity and in what condition. It is also the document finance relies on before paying a vendor or claiming GST credit.
- Read the guideGuide · 8 min read
How to design a purchase approval matrix
An approval matrix decides who signs off which purchase. Designed well, routine spend moves in hours and large or risky spend gets the right eyes. Designed badly, it becomes a queue.
- Read the guideGuide · 9 min read
What is three-way matching? PO, GRN and invoice explained
Three-way matching checks that you pay only for what you ordered and what actually arrived. It is a routine accounts step, and the one that keeps both payment and GST credit on firm ground.
- Read the guideGuide · 10 min read
How to reduce machine downtime caused by waiting for spare parts
Most breakdown hours aren't spent repairing the machine. They're spent finding, approving, buying and fetching the part. This guide covers the procurement side of downtime, step by step.
- Read the guideGuide · 8 min read
How to compare vendor quotes: L1, L2, L3 and the real lowest cost
L1 is the lowest quote, not always the lowest cost. Here's how purchase teams can compare quotes like for like and pick the one that costs least once the item is in the store.
- Read the guideGuide · 8 min read
Vendor consolidation in manufacturing: how to cut a 100+ MRO vendor list
Most plants didn't choose to have a hundred MRO vendors. They collected them one urgent order at a time. This guide covers what the long tail costs, the ways to shrink it, and how to avoid swapping one risk for another.
- Read the guideGuide · 10 min read
GST tax invoice checklist: what to check before you book a purchase invoice
A supplier's invoice decides whether you can claim input tax credit. Here's what a valid GST tax invoice must contain, the checks to run before posting it, and the errors that cost buyers their credit.
- Read the guideGuide · 8 min read
The MSME 45-day payment rule: what Section 43B(h) means for buyers
Since FY 2023-24, paying a micro or small supplier late can cost you a tax deduction as well as interest. Here's how the rule works and what purchase, stores and accounts need to change.