Procurement Features and Functions
Procurement is generally divided into MRP-driven (sometimes referred to as direct materials procurement) and requisition-driven (sometimes referred to as indirect or MRO procurement, although some long-lead-time, first-run direct materials are ordered via requisitions. This division reflects substantial differences in the two methods of procurement. Management of catalogs supports requisition-driven procurement and the sourcing processes that precede MRP-driven procurement.
|
Catalog Management
Catalog management tools need to import data from the supply base, which is generally stored in a vast variety of formats and using a variety of different semantics. The tools should help in the onerous task of cleansing and normalizing the catalog data. Normalization is more important in companies and departments where parametric searching of the catalog is required. Pre-populated and pre-normalized catalogs of products across one or more industry may also be included. Catalog syndication is required for larger organizations or distribution/e-marketplaces where you need to create multiple different views and subsets of a master catalog.
|
MRP-driven Procurement
MRP-driven procurement is often handled by the ERP system. Lacking an ERP system, SRM systems may provide this functionality which consists of managing the POs or work orders generated by MRP systems.
|
Reverse Auctions
Reverse auctions provide an alternative to the RFx process for getting multiple suppliers to bid on providing a specific commodity.
|
Requisition-Driven Procurement
Requisition-driven procurement systems allow users to buy from catalogs, automatically route requisitions for approval, provide tracking of approval status, generate and send purchase orders, control maverick spending, integrate with RFx and contract management systems, and tie into settlement and reconciliation.
|
Procurement Reporting
A variety of reports are required to effectively manage the procurement process.
|
Prices, Discounts, Cost Management
Prices and discounts management provides functions to monitor and analyze purchase price variance, which is key to controlling costs.
|
|
Supplier Relationship Management (SRM) Features and Functions
|