Procurement Management Software

           

                                           
                                               

The Procurement business function of an organization has changed significantly over the years. While initially it was considered as an ancillary activity almost hidden away from the more important and visible business processes like sales, marketing, and production/operations, it has gained more importance over the years and is considered a strategic business function today.

The practices and procedures that organizations follow have changed significantly too. Gone are the days of having little or no information about suppliers and their practices. Today’s procurement professionals work closely with their suppliers and maintain excellent relationships with them. More and more procurement professionals are using software tools to manage their organizational procurement.

How has software affected procurement?

Bottlenecks are common components of procurement processes and one of the most important reasons for this is a lack of automation for mundane activities. For example, the production business function needs a certain quantity of raw materials. They raise a requisition and this goes on to the supervisor for approval. However, chances are that the supervisor is already swamped with many such requests, causing a bottleneck.

With this software, though, orders can be automated. If it is found that a business function needs a quantity of raw materials regularly, the order can be automated with minimal approval so as to speed it up. Likewise, limits could be configured. Some organizations have a practice of leaving procurement at the discretion of the functional head. There could be a limit on the amount that the head can spend at this discretion and anything more than that would need approval.

Procurement Management Software also affords increased visibility for organizations. As the different business functions and employees involved in procurement can use the same software to manage their activities, they would not face the problem of incompatibility. 

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