Let us step through two examples, so that you can understand this concept more concretely. So, for the first one that we would actually look at, is the process of procurement. Procurement is nothing more than the step of getting the materials externally from the vendor. So, let's put that down on the top of the board here. So, we can refer to this procurement process, is basically, the goal of it is to acquire the needed materials very often. This is the raw materials needed to manufacture things. This is usually sourced externally from them vendor. So, typically how a business process would start requires a trigger as we've seen before. In this case here, this trigger happens when the warehouse recognizes there's a need to stock up, so then raw materials. So, let's illustrate this by drawing some pictures. So, I'm going to draw a picture here of a warehouse. There we go. So, we have a warehouse here. Let me just label this warehouse. In the very first step, the trigger here is that warehouse recognizes the need to buy materials to stock up. What will happen next is that this need is being written up in a document known as the portrays requisition document. Then that's being sent to the purchasing department of the company. All right. So, let's also put this down. Number two, document this need in a purchase requisition, and then send to the purchasing department. We can also draw a picture here on the left side of the board to denote this, so that it becomes easy for us to see. Here is a picture that represents the purchasing department. So, I'm drawing some very simple icons here, a shopping card which is used to typically help us recognize that this is the purchasing department. We can also draw some arrows here. Before that, let's put a label here, purchasing. So, the warehouse sends a document or a request containing what they need. We denote this as PR, meaning purchase requisition. So, this is done and the purchasing department will take a look at what is required in the document. Then, what they would do in this step up purchasing, is that they have to first of all identify. Identify the various vendors that they have dealt with before and has the ability to sell such a material to them. So, identify the right vendor and then create another document known as the purchasing order. Then this order is being sent to the vendor, so that a vendor knows that ''Oh, this company would like to buy something from me.'' Send to the vendor. We could also draw a picture here to illustrate this. Right here is a picture of a vendor, little house over here. It's like a little store. I hope these pictures are going to help you remember this better. So, let's again label this. This is the vendor in which they'll be purchasing the materials from. Then again let's denote this as this is another document that the purchasing department sends to the vendor. This is specific known as, the purchase order, PO for short. So, the vendor would look at this request and decides whether they could send or fulfill it. If the case is that they could fulfill it, they would send the right amount of materials and goods back to the buyer, which is our company here. So, the vendor upon seeing this request, vendor would ship the material to the warehouse because the warehouse is the one that's going to store the goods. Then we could set up also, put here in our picture, a warehouse is going to send the goods all the way back to the top over here. I'm going to draw a picture here of some goods. These are the goods. Then at the same time, once the good has been delivered, the vendor would also be sending an invoice to the company saying that, ''Look, I fulfilled my duty of shipping the goods to you so, please pay up.'' So, an invoice is being sent to the company's- and there's a specific place that receives such a thing, the document of the invoice, and that's the accounting department. So, that's being sent to the accounting department. I''ll just put it right here, and we can also have a picture here to show this. Typically a good way to show the accounting department is to have a picture of a calculator because they do all the calculations and the reports using the calculator. More or less is like that, they handle a lot of documents. So, let's also have little documents sign here. So, let's put a document here as well, this is the invoice, and this is being sent to the accounting department of the firm. We have noted that down in step number five, and then finally, the accounting department would say that, ''Okay good, you guys have done a job, we've counted the goods, everything is correct.'' The last step over here is that the accounting department will then pay. The accounting department would then send a payment. Sends the payment to the vendor. Once this is done, this entire process of procurement would be completed. So, we can also denote that in a picture over here. So, this is a dollar view here to show that the last step as being performed. Because we have all the steps listed out nicely with numbers, we can put it back here in this diagram. First of all, we start off with a warehouse recognizing as a need, and then a document, this need over here in a purchase requisition. Documents sends it to the purchasing department, purchasing department then goes on to issue a purchase order and sends it to the vendor, and the vendor would then fulfill this order, this purchasing order step four, and then upon finishing that, they will go about to send an invoice back to the accounting department. Accounting department then sends money back saying that, ''Thank you for this order, we are paying you back.'' All right. So, next let's also look at another business process to see how certain business process within a company plays out.
