Purchasing management process
In ERP software, the purchasing management module can control costs from the time of budgeting based on the business's operating plan by month, quarter, year and details within the next 5 years to determine goals. activities and monitor that goal regularly and continuously to make assessments and adjustments if necessary. Ensure the business always operates according to the goals set by the company's leadership.
- Full management information
- Real-time cost management
- Manage suppliers and payment costs to suppliers
- Report on evaluation and analysis of costs by month, quarter, year and by implementation items
The step-by-step process applied in our purchasing software includes:
Step 1: Creating purchase requests: To create these requests, it is necessary to rely on information such as:
- Current inventory of supplies and goods.
- Need for materials, goods, machinery, tools, etc. related to production activities.
- Need for supplies and goods for administrative and personnel sectors.
- The need to use externally purchased services.
Step 2: Approve the purchase request. Depending on each business, the approval levels will be different. In the example above, there are 3 levels of approval, first the department manager approves level 1, then moves to the Finance department to check the budget and goals. company's activities for level 2 approval, and finally the Director will give final approval. After being approved, the purchase request will be transferred to the relevant departments for procurement.
Step 3: Search and evaluate suppliers to select a list of qualified suppliers, usually at least 3 suppliers are needed, in some special cases there is only 1 supplier due to the characteristics of the type of goods. /service provided. This step is to create a list of qualified suppliers.
Step 4: Request suppliers to quote for each item. After qualified suppliers are selected into the quote request list, the system will automatically email the selected supplier.
Step 5: Create a price comparison table between suppliers and choose the appropriate supplier. After the supplier sends the quote to the business, it will be entered into the system or the system automatically records the quote information. From there, we will suggest the supplier with the best price, but in some cases, we will choose another more suitable supplier if the price does not differ too much.
Step 6: Prepare purchase order (PO) for selected supplier.
Step 7: PO approval by levels as in the example above is through 3 levels of approval, level 1 is the purchasing department manager, level 2 is the finance department and the last level is the Director for approval. After the PO is approved, the system will automatically send the PO to the supplier.
Step 8: Receive warehoused goods and enter purchase invoices. Check the quality of goods and services, accept the goods and services received. Attach documents related to standards to the system.
Step 9: Make payment requests to suppliers.
Step 10: Approve payment requests to suppliers.
From the above information, the system can keep track of which budget item the purchase cost corresponds to and whether it is within the approved budget or not. How much % of the budget is being implemented, and which activities have been disbursed and which activities have not been implemented. From there, business leaders make reasonable adjustments to ensure the business's strategic goals. In addition, for tasks that need to be done to PIC, the system will email and automatically remind PIC until the assigned work is completed. In addition, the system can integrate electronic digital signatures to ensure valid documents according to current legal regulations. Documents and records can be attached to the system according to arising business information, making it easy to track and search for records quickly, ensuring data accuracy.
If you are in need of purchasing software with the above management needs, please contact us for the best advice. We provide ERP solutions from Infor and Epicor, one of the top 5 best ERP software providers in the world.
