Purchasing Management Features and Functions
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Profile of Suppliers
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Rating of Suppliers
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Requisitions and Quotations
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Purchase Orders (POs)
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Pricing
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Vendor Contracts and Agreements
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Management of POs
PO = purchase order
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Procurement Reporting and Online Reporting
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Repeat Procurement
Procurement is the process of acquiring the goods and services required by an organization to fulfill its objectives (manufacture products, maintain assets, etc). Depending on the type of resouces and their use, the frequency of procurement can vary from very low (as for capital goods) to very high (as for raw materials). This criterion refers to medium- or high-frequency procurement.
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Receipts for Procurement
Receipts for procurement refers to the criteria related to the reception of ordered goods from the supplier. Between the moment when goods arrive and the moment when they are physically stored in the warehouse, there are a few factors that need to be taken into consideration, such as the quantity of the good received (Does it correspond to the quantity ordered?); the quality of the goods (Were the goods damaged during transportation or handling? Did perishable goods expire before getting shipped?); and pricing (Did the price of the goods delivered change due to unexpected factors?).
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Online Requirements for Purchasing Management
Online tools and portals are increasingly used by organizations for supplier interactions. In order to make communication efficient for both parties, these tools should provide functionality such as information on all available suppliers; the possibility of creating purchase orders with advanced options (e.g., define frequency, define delivery method, define payment methods, etc); collaboration that will allow changes to be easily communicated to suppliers, etc.).
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Reporting and Interfacing Requirements for Purchasing Management
In order to track the efficiency of the purchasing department, organizations need to access statistics and reports on what has been ordered compared to what has been received; the quality of the services provided by each supplier; price comparisons between different suppliers, etc. These reports are useful not only for the purchasing department, but also for other departments that depend on goods received, such as production, sales, and accounting.
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ERP for Manufacturing (SMB) Features and Functions
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