Why do companies need a procurement management system?
Posted May 27, 2020 • 3 min read
For manufacturing and other types of enterprises, such as wholesale, warehousing, retail, computers and accessories, the types of equipment that need to be managed are relatively complicated. In the traditional management mode, most of the data collection is done by purchasing goods and equipment. The special staff is responsible for data collection, sorting and recording. The purchaser is either on the purchase or on the way to purchase. The efficiency of this model is often low and error-prone, which is not conducive to managers to consult and analyze data.
In traditional procurement, the procurement team needs to call and send and receive emails to perform the procurement work. While receiving emails from the demand personnel of various factory workshops and reporting the procurement needs by phone, on the other hand, it conducts supplier screening, price comparison, and selects the right supply. If you call the supplier, place an order with the supplier. After the order is placed, you have to cope with the purchase order's order tracking, arrival time, reconciliation, etc., and rely on labor.
Disadvantages of traditional procurement
All procurement information is recorded by employees. In the case of multiple procurement personnel, this way of procurement information is not centralized, inefficient, and error-prone. It is not convenient for enterprise managers to consult and analyze and manage procurement information and make timely adjustments; procurement information may involve In many departments, the procurement information of each department is scattered, the information is not centralized, and the procurement flexibility is not enough; the procurement data is scattered in each system, and the statistics need to be manually exported and organized, which is both troublesome and not conducive to leadership inquiry and decision-making.
How does procurement management solve the above problems?
Employees can enter supplier information online anytime, anywhere through the purchase management system, and can submit purchase requisitions. Managers can review the purchase requisitions of various departments and give guidance.
Purchasing data is associated with purchase orders, and the purchase orders can be fully reviewed, and all data can be aggregated and processed in a centralized manner.
Automatically count the amount due to be paid, to avoid errors in employee statistics, all payment records will be recorded by the system.
The role of enterprise purchasing management system
Improve the work efficiency of procurement personnel, play a role in supervision and control of procurement management, and promote enterprises to reduce costs and increase efficiency, reduce compliance risks. Enterprises can make sold orders based on procurement data, thereby increasing inventory turnover. Automatically generate purchase and purchase order reports, accurately record data such as payments and rebates, can track the purchase history in real time, and provide price basis for future purchases.
Purchasing managers still need to consider a series of issues such as procurement time, quantity, process, supplier quality, employee needs, etc. If you want to successfully complete the procurement work, the procurement system personnel must also work hard to improve their professional skills and develop Vision, constantly improve strategic insight and management capabilities.
Enterprises should also actively promote the transformation of enterprise procurement management to digitalization, improve work efficiency and save time, money, and labor costs through digital and process-based procurement management.