Learn About Supply Chain Management Process

Supply Chain Management (SCM) in the public sector plays a critical role in ensuring that goods and services are delivered efficiently, cost-effectively, and in compliance with applicable laws. For LGU Iligan City, SCM covers a range of interconnected processes that involve procurement planning, requisitioning, purchasing, inspection, inventory, and distribution.

What is Supply Chain Management?

Supply Chain Management is the coordination and management of activities involved in sourcing, procurement, transformation, and logistics. In the LGU context, it ensures that all supplies, materials, and equipment are acquired and distributed in a transparent, timely, and accountable manner.


Key Stages in the SCM Process

1. Procurement Planning

Departments identify and consolidate their needs through an Annual Procurement Plan (APP). This process sets the foundation for timely acquisition aligned with budget appropriations and priority programs.

2. Purchase Request (PR)

End-users prepare a detailed Purchase Request, indicating item specifications, quantities, and justifications. This initiates the actual procurement process and ensures accountability at the department level.

3. Request for Quotation (RFQ) or Bidding

Depending on the procurement method (e.g., Shopping, Small Value Procurement, Public Bidding), the system generates RFQs or invitations to bid. Prospective suppliers submit quotations or bids for evaluation.

4. Purchase Order (PO) or Contract Issuance

Upon supplier selection, a Purchase Order or Contract is issued, formalizing the agreement. This document includes terms of delivery, specifications, pricing, and payment details.

5. Delivery and Inspection

Delivered items are inspected by the Inspection Team. An Acknowledgment and Inspection Report (AIR) is generated to verify compliance with specifications before acceptance.

6. Inventory and Issuance

Accepted items are recorded into the system’s inventory. Departments can request supplies using a Requisition and Issue Slip (RIS). Inventory ledgers are updated for real-time tracking and audit.

7. Adjustment and Disposal

For obsolete, damaged, or excess items, adjustments and disposals are processed in accordance with COA guidelines. These are logged and documented through Adjustment Slips and proper disposal reports.

System Automation Benefits
Policy Compliance

All SCM activities adhere to relevant government procurement laws such as R.A. 9184 (Government Procurement Reform Act), COA Circulars, and LGU-specific ordinances. The system is designed to align with these standards and provide audit trails for every transaction.

Learn More

For more detailed guidelines, you may refer to the GPPB Online Portal, or consult with the LGU Iligan City’s Bids and Awards Committee (BAC) and General Services Office (GSO).