Procurement Process – Request for Quotation to Purchase Order

Overview

This tutorial demonstrates the complete procurement workflow for medical devices: from identifying stock needs, requesting quotations from suppliers, comparing prices, to creating purchase orders. This workflow ensures proper vendor evaluation and cost control.

Step 1: Create Material Request (Stock Replenishment)

Scenario Setup

Your hospital has been using medical devices and needs to replenish stock for:

• Pulse Oximeters (running low)
• ECG Electrodes (high consumption item)
• New requirement: Digital Stethoscope

Create Material Request

1. From your Medical Device Management workspace, search for Material Request
2. Click New
3. Set these details:

Material Request Header:

• Material Request Type: Purchase
• Company: [Your Company]
• Required By: [Next week’s date]

Items Table: Add these items:

Row 1: Pulse Oximeter Replenishment

• Item Code: POX-001
• Qty: 50
• UOM: Nos
• Schedule Date: [Next week]

Row 2: ECG Electrodes Replenishment

• Item Code: ECG-ELEC-001
• Qty: 100
• UOM: Pack
• Schedule Date: [Next week]

Row 3: New Item Request

• Item Code: Click Create New and add:
  • Item Code: STETH-001
  • Item Name: Digital Stethoscope - Model DS100
  • Item Group: Diagnostic Equipment
  • Stock UOM: Nos
  • Is Stock Item: ✓
  • Valuation Rate: 320.00
• Qty: 25
• Schedule Date: [Next week]
• Description: New procurement requirement for cardiology department

4. Save and Submit the Material Request

Step 2: Create Request for Quotation (RFQ)

Generate RFQ from Material Request

1. In your submitted Material Request, click Create → Request for Quotation
2. ERPNext will create an RFQ with all items pre-filled

Configure RFQ Details

RFQ Header:

• RFQ Title: Medical Device Procurement - Q3 2025
• Company: [Your Company]
• Transaction Date: Today’s date
• Required By: [Material Request date]

Supplier Selection: In the Suppliers table, add multiple suppliers for competitive bidding:

Row 1:

• Supplier: MedTech Solutions Ltd
• Send Email: ✓

Row 2:

• Supplier: European Medical Devices AG
• Send Email: ✓

Row 3:

• Supplier: BioMed Components Ltd
• Send Email: ✓

Review Items Table

The items should auto-populate from Material Request:

• POX-001: 50 Nos
• ECG-ELEC-001: 100 Pack
• STETH-001: 25 Nos

Save and Submit RFQ

1. Save the RFQ
2. Submit the RFQ
3. Click Send Emails to Suppliers (this would normally email RFQ to vendors)

Step 3: Create Supplier Quotations

Now simulate receiving quotations from your suppliers:

Supplier Quotation 1: MedTech Solutions Ltd

1. Search for Supplier Quotation
2. Click New
3. Or from the RFQ, click Create → Supplier Quotation

Quotation Header:

• Supplier: MedTech Solutions Ltd
• Quotation Date: Today’s date
• Valid Till: [1 month from today]
• Company: [Your Company]

Items with Competitive Pricing:

Item 1:

• Item Code: POX-001
• Qty: 50
• Rate: £145.00 (competitive pricing)
• Amount: £7,250.00

Item 2:

• Item Code: ECG-ELEC-001
• Qty: 100
• Rate: £8.25 (slight discount for bulk)
• Amount: £825.00

Item 3:

• Item Code: STETH-001
• Qty: 25
• Rate: £315.00 (competitive)
• Amount: £7,875.00

Total Quote: £15,950.00

Save and Submit

Supplier Quotation 2: European Medical Devices AG

Create second quotation:

Quotation Header:

• Supplier: European Medical Devices AG
• Currency: EUR (if different)
• Quotation Date: Today’s date

Items with Different Pricing Strategy:

Item 1:

• Item Code: POX-001
• Qty: 50
• Rate: £152.00 (higher quality model)
• Amount: £7,600.00

Item 2:

• Item Code: ECG-ELEC-001
• Qty: 100
• Rate: £8.75 (premium electrodes)
• Amount: £875.00

Item 3:

• Item Code: STETH-001
• Qty: 25
• Rate: £295.00 (best price on stethoscopes)
• Amount: £7,375.00

Total Quote: £15,850.00

Save and Submit

Supplier Quotation 3: BioMed Components Ltd

Create third quotation:

Quotation Header:

• Supplier: BioMed Components Ltd
• Quotation Date: Today’s date

Items with Mixed Pricing:

Item 1:

• Item Code: POX-001
• Qty: 50
• Rate: £148.50
• Amount: £7,425.00

Item 2:

• Item Code: ECG-ELEC-001
• Qty: 100
• Rate: £7.95 (best price for electrodes)
• Amount: £795.00

Item 3:

• Item Code: STETH-001
• Qty: 25
• Rate: £325.00 (highest price)
• Amount: £8,125.00

Total Quote: £16,345.00

Save and Submit

Step 4: Compare Quotations

Use Quotation Comparison Tool

1. Go to Buying → Quotation Comparison
2. Click New
3. RFQ: Select your RFQ
4. Supplier Quotations: Select all 3 quotations
5. Click Get Data

Analysis Results

ERPNext will show a comparison table:

Step 5: Create Purchase Orders

Scenario: Choose Split Order Strategy

Create separate purchase orders for best pricing:

Purchase Order 1: MedTech Solutions

1. From Supplier Quotation (MedTech), click Create → Purchase Order
2. Remove items except POX-001 (50 units at £145.00)

PO Header:

• Supplier: MedTech Solutions Ltd
• Company: [Your Company]
• Currency: GBP
• Required By: [From Material Request date]
• TC Name: Standard purchase terms

Items:

• POX-001: 50 Nos at £145.00 = £7,250.00

Taxes and Charges:

• Add VAT 20%: £1,450.00
• Total: £8,700.00

Terms and Conditions:

1. Delivery within 14 days of PO confirmation
2. All items must have valid CE marking
3. Calibration certificates required for pulse oximeters
4. 24-month warranty standard
5. Payment terms: 30 days net

Save and Submit

Purchase Order 2: BioMed Components

1. Create new Purchase Order
2. Supplier: BioMed Components Ltd

Items:

• ECG-ELEC-001: 100 Packs at £7.95 = £795.00

Taxes: VAT 20% = £159.00
Total: £954.00

Save and Submit

Purchase Order 3: European Medical Devices

1. Create new Purchase Order
2. Supplier: European Medical Devices AG

Items:

• STETH-001: 25 Nos at £295.00 = £7,375.00

Taxes: VAT 20% = £1,475.00 Total: £8,850.00

Save and Submit

Step 6: Purchase Order Management

Monitor PO Status

1. Go to Purchase Order List
2. View all 2 orders with status “To Receive and Bill” (we only did 2)

Update Delivery Schedules

For each PO, you can:

• Amend delivery dates if needed
• Track supplier confirmations
• Monitor for on-time delivery