Procurement Management is a process in which the purchase activities of various goods, materials, and services required for an organization from multiple vendors or providers are monitored. If the company is very small, the process of manual procurement may work sometime, but as the organization grows, the manual operations become very tedious. The time-consuming approval process, manual document preservation, lack of a proper approval management hierarchy, etc. are some of the challenges that an organization does face when the business starts growing.
The Effective vendor relationship helps in the long term purchase operations as the communication processes are highly automated and become easier with the help of the right solution. The dispute rate, unnecessary expenditure, scattered documentation, and the delay in the procurement process, get significantly reduced using the procurement Management System.
What is the Procurement Management System?
To understand what Procurement Management System is and how it exactly works, we need to understand the process of Procurement Management in order to increase the process performance with the help of a Procurement Management System.
Procure-to-pay or P2P process is a process of requisitioning, purchasing, receiving, paying for, and accounting for goods and services. Using the strategic approaches a company can acquire raw goods and services either for manufacturing, daily operations, or resale from their preferred vendors within the deadline. The right procurement process improves the P2P operations leading to effective purchasing.
The procurement operation varies company to company but in general, the process remains as below:
The employees depending upon their requirements raise the Purchase requisitions to the authorities and the authorities depending upon the budget assigned, approve requisitions and convert into the Purchase order. The designated vendors raise the invoice against the purchase order with information details and share the invoice to the Account Payable Department for the Payouts. During this process, the management of vendors and related contracts needs proper handling for compliance checks and better accountability.
Best Options Available:
A lot for applications that are available in the markets, but choosing the right solution for the procurement processes, helps the organization in reducing unnecessary spending, time of valuable resources, and the P2P cycle. The enterprise resource planning also comes with the best procurement functionalities, so that the entire business flows remains intact to the organization management. The Oracle NetSuite Cloud ERP helps the organizations in managing the vendors and their relationships quite effectively along with the source to pay processes and controls the expenses.
The NetSuite ERP helps the companies in automating the approval routing (Native, Standard & Customized), track vendor performance & complete insights about the procurement cycle.
If you want to streamline the entire procurement process of your organization and need a better consultation in order to reduce to the expenses and time delay along with the increase in business productivity, feel free to reach us at:
Website: http://saturotech.com/
Email ID: sales@saturotech.com
Contact No: +91 844-844-8939 (& Press 3)