Strategies for Smart Procurement Management
Companies and Industries are occupied with countless business operations every single day. Taking one job from their plate or remove a chunk of workload can accelerate their engines for more productivity. Not all the workflows are structured and hence end up consuming significant man-hours and efforts. Most of these repetitive tasks go unnoticed as the industries still use legacy systems or did not explore the optimum solutions available in the market.
One such business workflow that needs to be structured to save tremendous effort is procurement.
What is Procurement?
Procurement involves buying goods/ services by identifying vendors and mutually agreeing to the terms and conditions. It happens often via tendering or through the competitive bidding process.
It implies a buying decision taken by the company after purchase requests arise for goods/services.
Procurement Life-cycle or the stages of the procurement
There are several stages in the procurement process before buying a product or service.
Each stage goes through approval and the cycle continues. Hence it is extremely time-consuming and cumbersome since work is done manually which are prone to errors and miscommunications. Approval involves back and forth acknowledgments from multiple departments.
- Identify the needs/demands
- Budget allocation
- Identify the vendors/suppliers
- Get quotations
- Finalize the vendor
- Deal negotiation
- Release purchase order
- Release payments
- Delivery of shipments
Procurement Management Software: from store to door (end to end inventory management)
Our Procurement Management Software can simplify the process involved in procurement and can structure the workflow in-line with your existing ERP systems.
From identifying requirements to product delivery, nTirePMS is an e-procurement portal to automate the entire procurement process.
Vendor Management through self-registration
The vendor registration portal allows vendors or suppliers to self-register along with their product details. The vendors are verified and approved by the system to maintain an authentic list of vendors. The suppliers can also update their product lists and hence it stays accurate and as on date. This saves the time and effort for the companies when any new request arises or there is a demand for goods/services.
Option to compare suppliers like online shopping
After the Purchase request is raised in the ERP and approved, the data flows into the procurement system to identify the suppliers. From the registered vendors the system finds a suitable match for the products and their approximate costs and delivery timelines.
Say for example, the company needs 10 laptops with at least 8GB RAM & corei5 CPU. The system identifies the list of suppliers with their product pricing and expected period of delivery.
The Procurement Management System provides a facility to either directly go for a deal with the vendor or conduct an auction with the list of vendors.
Notifications will be sent to the vendors to submit their quotations online. Human intervention is very minimal and it also brings more transparency in the system.
Just-in-time procurement saves inventory cost
With Purchase Management Software industries can avoid overstocking or delayed refills and can optimize the inventory costs. Industries can get the best offers available in the market through online auctions and tenders initiated by the system. The system sends notifications for a faster approval process and updates the status in the vendor portal for purchase order acceptance and delivery.
Online portal for payment updates and deliveries
The Vendors can make modifications to their RFQs (Request for quotation) before the expiration date and the version history is maintained by the system to keep track of the changes made by the vendor. Companies can update the payment status of the vendors like released payments / pending etc. in the vendor portal. It is a relief to the vendors as they need not follow up with the company. This minimizes the call and follows up efforts involved by both the vendors and the companies.
Vendors can update the delivery schedules and can attach the RFID/ Barcodes of the products before they are out for delivery for faster reconciliation. Lot of human effort is saved in this process.
Alerts and notifications through SMS/email
Purchase Management Software sends notifications to supervisors and vendors whenever any action is required in the procurement cycle. This helps the system to function effortlessly without any follow-ups and delays. The invoice can be sent online to vendors through scheduled release after the goods/services reconciled. Supervisors can be alerted of the delivery schedules and can be notified of damaged goods or delays. The online portal also allows managers/ supervisors to collaborate with vendors if any clarification is required before or after the purchase order is released.
Procurement Management Software can transform your business by streamlining the procurement workflow
- Get connected to the best vendors available in the market instantly
- Know the product availability in real-time
- Better communication on purchase orders and deliveries
- Saves a significant amount of time and efforts of the team
- e Procurement Management Software brings transparency in the system
- Purchase order cycle time is reduced
- Increases productivity of the team
- Improved supplier relationships
- Easy integration with existing ERP systems