e-Procurement: Procurement Process for the Tech Savvy Organizations

Business enterprises both large and small deal with exchange of goods and services and the transaction is either in the same form or in cash. The process of buying of supplies and services, for use in the business process is termed as procurement.  With technology being integrated into every system, most business houses use automated tools for procurement. The tools like the enterprise resource planning and EDI aid procurement specialist with the buying process.

Technological innovations and growth of e-commerce have given rise to electronic procurement. Also referred to as e-procurement this process involves the use of electronic media for acquiring materials and supplies. However, irrespective of being a consumer or a retailer, for the home front or for the business organization, the first step in every procurement process is identification and recognition of the requirements.
The process involves generating a purchase requisition for the product either as an automated or a manual one followed by the request for quote (RFQ) or purchase order depending on the purchase status of the product, payment to the supplier as per terms and conditions and finally the delivery of goods or services. Today with number of purchase order software available in the market is equipped with its directory listing of genuine suppliers, making the procurement process easy.

Depending on the business and the organizations the procurement process may differ but is definitely aimed towards the benefit of both parties involved. The whole process of procurement however should be in compliance to the regulations. Further, the Internet has opened up a wider scope for researching and consulting for procurement services and efficient order management system. The automated procurement process integrates the suppliers, buyers and collaborating partners into a value network with the use of intelligent IT systems.

The electronic procurement method adopted by most organizations not only facilitates better post award management, way ahead of the traditional purchase order software, but also ensures an automated end-to-end workflow in the procurement process leading to improved organizational efficiency and significant reduction in overhead costs.
The advent of the cloud computing technology, leading enterprises of the industry sector have designed and developed cloud process based procurement process. This process is an all in-one package with every details from definitions of products, organizational hierarchy, managers and administrators, user language preference, existing and approved price list, supplier data base etc, available at ones finger tips. Such systems with features like article selection, product comparison and structured shopping carts facilitates a configurable post award management. Along with detailed delivery reports and order confirmation, the cloud based e-procurement process provides an end-to-end display of all the procurement transactions.

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Order Management Systems: Streamlining Business Intelligence

Every business irrespective of its size is profit oriented. The growth and success of any business is determined by its expansion, profit margins and revenue collected. During the initial stages of business, responding to customer needs and demands is easy as is the orders are also minimal.   However, as business expands the enterprises need to expert methods to ensure the correct procurement of products and services, track orders, sales and inventory so as to maintain better customer relationships.

The technologically enabled business world today makes use of a number of automated procurement and order management systems to maintain and manage the smooth functioning of the supply chain network. With the development of e-commerce, organizations have greater scope for business expansion and thus tend to make use of the cloud based business procurement process. Such automated purchasing process strengthens the value network of the organization by integrating the buyers and suppliers with the help of IT systems.

The cloud-based procurement systems goes way ahead of the traditional purchase order software and eases out post award management functions by automating the end-to-end workflow from order, delivery to invoicing.  Further, the use of order management systems enables the enterprises to track the progress of the product or service. Inefficiencies in the ERP system or order management process will lead to loss of revenue, hamper customer relationship and inability to integrate with eprocurement process.

The leading market player shave designed and developed order management systems, which would provide visibility and control over the supply chain activities. These systems can integrate well into the ERP and warehouse managing systems of the value networks. The cloud process based order management system has the ability to incorporate the entire logistics from order to delivery and supports a web based order placement from the customer’s ERP systems.

These cloud based order management system provide high degree of functionality through a connectivity platform that paves way for automatic allocation of transport, validation of inventory, routing details and destination, stock updates and sales orders. The system is also designed to provide real time data to supply chain organisation to ensure improved management of delivery processes. From the organizations point, these cloud process based order management software brings about a significant reduction in cost, helps to track and trace consignments. With its real-time reporting mechanism and 24/7 access, it records higher asset utilization, quicker implementation and streamlined business intelligence for a higher Return of Investment.  


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