When the Gartner group first coined the term Enterprise Resource Planning, better known as ERP; way back in the nineties it was foreseen as a simple extension of MRP, Materials Requirements Planning typically of a manufacturing enterprise.
How Custom ERP solution emerged as much more is a well-known story. A comprehensive system offering a tightly integrated enterprise solution catering to diverse industries and domains depends extensively on information technology to remain robust and dependable all through these years. Today the discussions about ERP cover niche technologies like the Cloud, far away from its small beginnings years ago.
A prudent ERP system brings about changes in the industry it touches with more than one way by offering more productive and efficient solutions, ensuring better user experiences with contemporary methods like enterprise mobility, integrated data collection & interpretation techniques. Innovative approaches like mobile ERP systems create lasting impressions on enterprises. Catering to all aspects of the enterprise requirements, an ERP system also nurtures a core requirement of the enterprise – Purchase Management.
Purchase Management [Purchase Module]
An integral part of the supply chain, purchases need to be planned and executed to optimize supply chain overheads, keep inventory down to the most economical levels and maintain the operational efficiencies as high as possible with increased visibility of supplies & demands predicted.
A well chalked out purchase management strategy ensures promising ROIs by including value-added services like vehicle tracking system amongst others.
A tightly integrated workflow derived by the purchase management module of an ERP system goes a long way in bringing sync between procurement and sales.
Purchase Management Workflow
Generating Business Acumen With Purchase Management For Business ERP Solution
Being a part of an Information Technology enabled ERP system fosters the very critical requirements of a Purchase Management Module.
The use of technologies like BI & Analytics generates actionable data from the data sets collected and curated which become of great use before the peak seasons like holidays. Self-service approaches, as well as standard reports & dashboards, enable the concerned workforce to make appropriate predictions to plan better purchases. Constant comparison of prices offered by probable suppliers is possible to keep the enterprise well informed with precision and thus negotiate favorable prices with the suppliers shortlisted.
Increasing Operational Efficiencies through Purchase Management in ERP
Purchase orders can be scheduled very intelligently making use of the business knowledge generated through the purchase management modules in ERP systems. Multiple delivery dates too are logically derived. Standing orders and contracts are tracked quite efficiently and without intervention with this implementation of ERP systems. Automated tracking of purchase order status is synced in with this facility.
Up to date supplier databases are maintained to enable an easy access to prices offered and quick decisions post comparisons. Quality assurance checks of material delivered are integrated into the audits for purchase management system along with feedback features.
Supplier relationship management abilities are blended in into the purchase management features itself to have real-time information about the supplier liabilities & responsibilities to maintain a long-lasting transparent relationship with these stakeholders.
- Maintain Supplier Databases
- Purchase Scheduling
- Quality Assurance & Audits
- Contract Management
- Supplier Relationship Management
The Ideal Features Of Purchase Management In Enterprise Resource Planning
The most sought-after features of purchase management are interdependent yet varied.
- Supplier Registration
- Supplier Performance Monitoring
- Purchase Requirement Analysis
- Inventory Tracking
- Purchase Scheduling
- Purchase Order Creation
- Supplier Reports
- Discounts & Offers
- Purchase Contracts
- Overdue Purchase Order Reporting
- Expected Deliveries
- Partial Delivered Reports
- Self Service
Benefits Offered by Purchase Management In ERP Systems
A purchase management module in an ERP system streamlines procurement resulting in manifold advantages for the enterprises.
Reduced Lead Time
Efficient purchase management systems help strategize procurements as per the further schedules and the lead times calculated before deliveries, avoiding the need to maintain & safeguard materials.
Improved Accuracy Of Predictions
Requirement analysis becomes more accurate and reliable with an automated purchase management system relying on modern-day information technology offerings like BI & Analytics.
A purchase management module becomes a quintessential part of an ERP system by offering insightful reports which help generate appropriate budgets and plan expenses.
Improves Cash Flow & Profits
Purchase management software effectively calculates the supplies needed and predicts & controls the precise amount of inventory required in conjunction with the demands leading to better cash flow and hence profits.
In A Nutshell
Custom ERP solutions have an increasing significance because of the integrated and centralized approach to facilitate business functioning in core areas like Finance, Production, Procurement, Sales & Marketing, Customer Relation, Human-Resource Management and most importantly Purchase Management.
A mature ERP system combines solutions to a huge number of requirements into one and goes ahead to cater to a diverse set of industries beyond the much-discussed manufacturing industry it started off becoming an indispensable tool for.