How to run a monthly China buying-plan meeting
Use a shared, dated plan showing demand, customer orders, usable stock, incoming supply and payment dates. Sales explains demand changes, procurement verifies supply, and finance tests cash availability. Close with approved purchases, holds and named actions. Cambridge China Bridge can help verify factory updates through its staff in China.
Prepare a shared plan before the meeting
Appoint a chair who can obtain purchasing decisions and a plan owner who maintains the agreed version. Sales submits customer orders, cancellations, promotions and forecast changes; procurement submits open purchase orders and factory updates; finance submits payment commitments and expected receipts. Set a common cut-off and flag later changes separately.
Use a shared product code, unit and planning calendar. Each product row should show demand, customer orders included in that demand, usable stock, incoming supply, proposed purchases and cash commitments. Keep a change log explaining what changed since the previous meeting, why it changed and who supplied the evidence.
Reconcile demand without counting orders twice
Sales owns the demand proposal, but all departments agree the working forecast. State whether it represents total expected sales or additional sales beyond booked orders. If orders are already included, use them to replace the corresponding forecast demand rather than adding them again. Match by product and required delivery period; investigate mismatches.
Separate booked orders from enquiries and hoped-for sales. Record the basis for promotions, customer concentration and unusual demand. When departments disagree, retain an agreed working assumption and an alternative case with a trigger for review. Use the forecast versus firm order guide for the distinction between planning demand and ordering.
Check when incoming stock becomes usable
Procurement reconciles each incoming batch against its purchase order, quantity, product revision and current status. Distinguish factory completion, dispatch, arrival and availability for sale. Ask the China team for dated evidence of progress and outstanding inspection or document issues. Show uncertain arrivals separately rather than treating them as confirmed stock.
Calculate the projected usable balance by carrying stock forward, adding usable receipts and deducting agreed demand. Exclude stock held for defects or already unavailable to this plan. Flag shortages and excess stock by product and period. Use the reorder-point guide for replenishment settings; this meeting decides which exceptions justify changing the buying plan.
Test purchases against cash dates
Finance maps existing commitments and proposed purchases to their expected payment dates, including deposits, balances, freight, import charges and delivery costs. Compare these with available cash and realistically timed customer receipts, allowing for other business commitments. Test delayed receipts and earlier supplier payments. A profitable order may still create an unfunded payment date.
Record the assumed import VAT treatment. UK VAT registration is required to use postponed VAT accounting; ask finance to confirm eligibility and the intended treatment before relying on it in the cash plan. Keep uncertain treatment flagged. Use the China order cash-flow calendar for the detailed payment schedule.
Decide exceptions and publish the agreed plan
Discuss exceptions requiring a choice: a shortage, excess stock, changed factory date, cash gap, unresolved quality issue or buying quantity above expected demand. For each, record the evidence, options, recommendation, latest decision date and consequences for customer promises and cash. Procurement checks factory feasibility, sales agrees customer actions and finance confirms funding.
Close each exception as approved, held, revised or escalated. Record the authorised quantity, spending commitment, release conditions, decision-maker and action owner. Publish the agreed plan and decision log together. Meeting approval should identify whether an order may actually be released; apply the order and payment approval controls. Reopen decisions between meetings when their recorded assumptions fail.
Frequently asked questions
Who should chair a monthly buying-plan meeting?
Choose someone who can obtain decisions across sales, procurement and finance. Name a separate plan owner if needed to maintain the forecast, actions and decision log.
Should customer orders be added to the forecast?
Only if the forecast excludes them. If it represents total expected sales, match orders to the relevant product and period and replace the corresponding forecast demand.
What if demand exceeds available purchasing cash?
Compare smaller releases, deferred purchases and changed customer promises. Show the stock and cash consequences, then record the authorised choice and any conditions before releasing an order.
Can an urgent purchase wait until the next meeting?
Use an exception decision when waiting would miss the purchasing deadline. Obtain the required approval, update the shared plan and record the effect on supply, cash and customer commitments.