Procurement Management System
Procurement Management System is a vital business process, wherein it mainly focuses on acquiring and receiving items from the vendors/suppliers. It creates an impact on the overall costs, inventory, and assets of the company. It means that you do not submit it to a vendor. We help you develop your purchasing capabilities for the items from your suppliers to your inventory. We help you create purchase requisitions with just a few clicks.
We improve your purchase and inventory performance with the procurement management system. Select from different replenishment methods for each product depending on your manufacturing and delivery strategies. Our procurement management system easily imports suppliers' price lists to make smarter purchase decisions based on promotions, quantities, and conditions. Keep track of a product's availability from your supplier’s stock and check your order status for you to base your sales price on your supplier's prices.
Best Practices in the Procure-to-Pay Process
The following five best practices can help organizations improve the efficiency and effectiveness of their procure-to-pay process:
Implement procure-to-pay process
Keep the process transparent
Improve supplier agreement
Streamline contract management
Transparent Purchase Requisition
Accessible, complete and transparent purchase requests.
Customize every aspect of your Purchase Orders from data fields to approval workflows
Fewer Human Errors
Reduces the risk of purchasing issues from inappropriate data input
Simplifies activities related to purchase requisition, canvassing, purchase order, and goods receipt.
Procurement Management System includes:
All requested items are managed through a purchase requisition. It can be set up in the system which are vendors that will be used for the requesting items. Most of the transactions are recorded in submodules and are reconciled with the purchase orders in real-time. Transactions that can be done directly in purchase requisition include warehouses that are posted to select the delivery location of the item requested. The main objective of this module is for the enterprise not to order material in excess of requirement and as such could be helped by our Supply Chain Management Module. The Purchase Requisition form allows the Purchasing department to input the item the quantity and estimated unit cost of the item to be procured until the designated approver approves the Purchase Requisition in which he/ she may see the department and designated warehouse and the person who requested it.
The purpose of Requisition includes the following:
Increase speed. Requisitions can be processed and transmitted electronically across the company; saving many days in routing through company mail. It also does not require you to send a runner or staff around to collect signatures. Requisitions used to take hours or days before can now be routed in minutes and faxed to the vendor from the Purchasing server, cutting down processing time tremendously.
Accuracy of funds. Requisitions route to the person(s) designated as the approver(s) for any fund(s) that are on a requisition. This allows departments to review the use of their funds before the order is created.
Ability to track the requisition at all points in the process. Departments can access the requisition at all times and see who has the order and what approvals or actions it is waiting on.
Canvassing primarily features the Request for Quotation (RFQ). RFQ allows you to issue a request to your vendor for a quote on a specific item or service. The Quotation is the official response from your vendor. The system will also propose the most favorable quote based on your entries from the Quotations (Lowest Bidder).
An RFQ typically involves more than the price per item. Information like payment terms, quality level per item or contract length are possible to be requested during the bidding process. An RFQ can have an approval process or release procedure if your company requires approvals before you send RFQ to vendors for bidding.
Purchase Order is a sub-module that captures all transactions with vendors and manages payment plans. Delivery dates and payment terms will be set and when transactions are posted in the purchase order, then requisition will be updated with the items in real-time. Transactions in purchase order include payment terms, delivery date, VAT, currency, and warehouse. The purchase order provides a comprehensive and fully integrated purchasing system. It allows a combination of multiple receipts on a single invoice. The shippable backorder report helps identity orders that can be completed based on recent inventory receipts. It produces produce purchase orders for both products and services. It automatically creates an inventory system or you may manually set it up.
The purpose of Purchase Order Module includes the following:
Match Goods delivered against what was ordered. The team or individual that receives goods into stock when shipments arrive may well not be the same person that placed the order. If you’re only placing orders on the phone and not using Purchase Orders, then nobody really knows what you asked for.
See purchasing history with suppliers. Using Purchase Orders gives you a trail of invaluable information about your purchasing and cost cycles. Next time you have a meeting with a supplier to negotiate a discount or place a purchase order for the next season’s goods, you can go armed with the knowledge of exactly what you bought last year, what lines sold well, what you paid for them and how fast the supplier managed to deliver to you.
Receiving Report is a sub-module that captures all transactions with vendors and manages invoices. Item serials will be set and when items are received and transactions are posted in receiving the report, then requisition will be updated with the items in real-time. Transactions in purchase order include purchase order, invoice, supplier delivery receipt, and item serial. It is the physical inbound movement of goods or materials into the warehouse. It is a goods movement that is used to post goods received from external vendors or from in-plant production. All receiving reports result in an increase of stock in the warehouse.
Procure-to-Pay Process Flow
Coordinated and integrated action taken to fulfill a requirement for goods or services in a timely manner at a reasonable price. It involves a number of sequential stages, ranging from need identification to invoice approval and vendor payment. Steps in a procure-to-pay cycle need to be executed in a strict order.