Purchasing Management Features and Functions
Purchasing management encompasses a group of applications that controls purchasing of raw materials needed to build products and that manages inventory stocks. It also involves creating purchase orders/contracts, supplier tracking, goods receipt and payment, and regulatory compliance analysis and reporting.
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On-line Requirements
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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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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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Supply Chain Management Features and Functions
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