Company procurement management system and procurement process

How important is the company’s procurement management system to an enterprise? We just need to see the value of procurement management to the company. Its value can be simply summed up as: reducing costs, improving capital turnover, and helping enterprises to innovate and operate. In order to achieve these values, we must have certain management standards to standardize the work of the company’s purchasing personnel, clarify the rights and responsibilities, strengthen the effective management of purchasing, guarantee the quality of materials, improve efficiency and accuracy, so as to be closer to the three values we expect. As we all know, institutions are used to manage people, affairs and processes, to help organizations operate flexibly and efficiently, and more importantly to regulate and prevent risks. In this case, let’s talk about the purchase management system and purchase process.

In the opening part, we have understood the importance of the company’s procurement management system, of course, it is impossible to talk about the system design, system content and other boring content here. Therefore, we might as well start with the procurement process, intuitively understand the important links and elements of the process, so that we can easily understand the company’s procurement management system. Why to design and standardize like this? What is the significance behind it. See the picture below.

How about this picture? Does it make the purchasing process more intuitive? Do you think this is all about the purchasing process? In fact, it’s not right. Generally speaking, the company’s procurement process consists of two parts. The first part is the above process called enterprise material procurement process, and the other part is called bidding process. The enterprise material purchase process mainly includes: purchase demand – looking for suppliers – inquiry, price comparison, negotiation – purchase negotiation – signing contract – delivery acceptance – quality inspection – warehousing – plan reconciliation – financial settlement. Let’s look at the bidding process through the figure below.

In contrast, the bidding process and the enterprise material procurement process together constitute a complete procurement process. It’s not difficult to rely on the pictures alone, but you will find it very tedious when you really touch the procurement work. It’s not that easy. What should I do?

One of the standards of modern enterprise management is to simplify the complexity. In addition to process design, simplification and optimization, more ways can be solved by technical means, such as enterprise management software in the digital era. For example, our common SAP cloud ERP system or some supply chain or procurement management kits in SAP system can easily meet the control of procurement process and greatly reduce labor costs. Return to the principle of procurement management, timely, appropriate, appropriate price, appropriate amount, and appropriate quality of materials procurement back to become a standard to measure whether the management is smooth.

If SAP system is taken as an example, such processes can be supported one by one through e-procurement and expense analysis. Even so, it is necessary to simplify the procurement process according to the characteristics of the enterprise, ensure the compliance of the contract, and manage the whole procurement cycle through standards and automation. Finally, we will review the company’s procurement management system and procurement process. The procurement process is the main line, and the procurement management system and management software are the means. The ultimate goal is to realize the three major values of procurement and improve the core competitiveness of the enterprise.

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

This article "Company procurement management system and procurement process" by AcloudEAR. We focus on business applications such as cloud ERP.

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