Importance and standard of purchasing management process optimization

When we are in an era of supply chain competition, the price advantage is declining day by day, and the value competition situation is prominent. The business environment has long been greatly changed because of the supply chain competition mode. Nowadays, enterprises must pay more attention to the procurement link for their own sustainable development. For this reason, the influence of purchasing management in the organizational structure of Chinese enterprises is expanding day by day, and it is gradually becoming one of the important core competitiveness of enterprises. Of course, procurement management is not as easy as you think, because it involves a wide range of aspects, in which the process is an inextricable link, without the control of the process, how to get a satisfactory result? In this way, let’s first understand the importance and standards of procurement management process optimization.

How important it is to optimize the procurement management process and how many partners who have contacted the procurement usually say a few things. For example, the obvious advantages and benefits of reducing various costs, making capital flow faster and making new procurement decisions in response to the constantly defended market. It is undeniable that this is also the key point in the importance of procurement management process optimization. But we tend to ignore the most critical point, that is: to help enterprises innovate in the future. How can we talk about enterprise innovation? Finally, I will tell you the answer.

Let’s take a look first. How can we standardize the procurement management process? Advanced management ideas and excellent management software are essential. Too many entrepreneurs will think: is there such a set of software to comprehensively solve their own enterprise’s standardized procurement management process? Xiaobian tells you that a dish can’t satisfy everyone’s appetite, and so can a set of software that is no better. What should I do? In order to realize the standard of purchasing management process, we must establish on the actual basis of our own enterprise’s purchasing process, comb, design, formulate, practice and optimize. This is a long-term and continuous task, which can not be accomplished overnight.

Next, let’s look at the standards for enterprise procurement management process optimization, mainly involving inquiry, supplier selection and contract management. Inquiry is not simple, need to understand the qualification of suppliers, product quality and market reputation, are considered to be the standard of qualified suppliers. Next, select the best sellers from all the sellers, further select the most suitable ones for negotiation, evaluation, selection (price, etc.), estimation, and finally select suppliers. The next step is to sign a contract to define the compliance of the contract and the quality of products and services, as well as the risk and disposal methods.

Generally speaking, on the one hand, modern enterprises rely on their own experience in the industry, on the other hand, they rely more on advanced management ideas and the best industry solutions of management software as reference for optimization. For example, the SAP system favored by large and medium-sized enterprises can support the purchase management process through comprehensive integration, or it can be realized through the purchase management suite. Of course, there are also best practices in various industries. With such an advanced management system, you only need to adjust the choice of detailed software in the best solution according to your own reality to obtain the best solution. Whether it is procurement process optimization or the establishment of standards, it will become very simple.

Finally, how can we objectively evaluate the purchasing management level of domestic enterprises? Let’s listen to Cai Jin, vice president of China Federation of logistics and purchasing. “In the past few years, the problems in the procurement management of Chinese enterprises are very obvious. Influenced by the competition mode of enterprises, the basic positioning of procurement is in favor of the role of service, with low participation and cost orientation, while the procurement activity of state-owned enterprises is relatively low. ” With the innovation of technology and the development of digital economy, more and more enterprises take advantage of advanced enterprise management ideas and software to gradually realize the optimization management and procurement management of supply chain and upgrade the core competitiveness of enterprises. Speed up to say goodbye to the backward face of traditional procurement management.

For a more comprehensive understanding, consult the acloudear — SAP partner.

This article "Importance and standard of purchasing management process optimization" by AcloudEAR. We focus on business applications such as cloud ERP.

Scanning QR code for more information