9 steps of effective Procurement Process

9 steps of effective Procurement Process
9 steps of effective Procurement Process The procurement process involves a series of activities undertaken to ensure the required materials are available at the right time in the right quantity. Procurement is a strategic business function which impacts the operations, supply chain, quality, cost and profits of most business organization. Hence it is crucial to have an effective Procurement Process. An effective procurement process involves understanding & consolidating the procurement needs of all departments/units of an organization, finding out suitable vendors, evaluating their te...
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Difference between Procurement and Purchasing

Difference between Procurement and Purchasing
Difference between Procurement and Purchasing Both procurement and purchasing are business terms that are quite similar and many people and organizations use these terms interchangeably. However, there is a distinct difference between Procurement and Purchasing. Purchase is more or less a term for transaction activities whereas Procurement is a term for rational activities or strategic activities which includes transactional activities also. In other words, Purchase is a subset of procurement.  Let's have a detail look at both business terms What is Purchasing? Purchasing is a term assoc...
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8 Steps to eProcurement Success

8 Steps to eProcurement Success
8 Steps to eProcurement Success Do you want to save time, effort and procurement costs? Have you noticed that manual procurement process is person dependent, involves a lot of paperwork, repetitive tasks and is time-consuming? Redefine Procurement! Digitize & Automate your procurement process with an e-Procurement software solution. e-Procurement or electronic procurement refers to the purchase of goods or services online. Implementing e-Procurement in an organization involves automating the procurement process, using a suitable software solution. A well thought implementation methodo...
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What are the benefits of e-Procurement ?

What are the benefits of e-Procurement ?
What are the benefits of e-Procurement?   Procurement costs generally account for 60% to 70% of the total expenditure of Manufacturing SMEs. Procurement is a critical business function, affecting the overall performance and efficiency of an organization. Most Manufacturing SMEs face challenges such as limited human resources, market competition, a struggle to meet delivery commitments, etc. Most manufacturing SMEs still carry out manual procurement process, which involves a lot of tedious, recurring activities to be performed with limited manpower, time and skills. Let us now understand how M...
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What is e-Procurement? Components of e-Procurement

What is e-Procurement? Components of e-Procurement
What is e-Procurement? E-Procurement or electronic procurement is the process of purchasing goods or services online. e-Procurement software solutions help to automate the entire manual procurement process right from requisition of goods to issue of the purchase order. Organizations, mainly those in manufacturing or related sectors, typically spend 60% to 70% of their total expenditure on the procurement of material and services. These materials and services have a large impact on their final product quality, product cost, product delivery, and customer satisfaction. Hence, procurement has b...
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ERP Selection & Implementation Guide

Business has become more competitive and value driven than ever. To improve their deliveries and performance more and more organizations are going digital and adopting ERP. And with the increase in number of ERP implementation, number of failures has also increased. ERP selection & implementation has a key role in successful ERP implementation. Here is our guide for ERP selection and implementation. 1.   What is ERP? 2.   How ERP is helping midsize organizations around the globe? 3.   8 Signs it's time to invest in ERP for your business. 4.   ERP selection steps. 5.   How to...
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Action Plan for Inventory Optimization

Inventory Optimization has always been challenge for SMEs. The objective of this article is to suggest actionable steps for inventory optimization for SMEs. Steps mentioned in this article are prepared based on data analysed from various process industries. We will cover inventory optimization for discrete manufacturing in separate article. 1) Identify Consumption Pattern and Consumption Rate: Analyse your past consumption data of minimum 2 to 3 years consumption. Based on analysis of past data you should be able to segregate items into different consumption patterns. Few examples are: ...
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Supply Chain and it’s impact on profit and growth in today’s business

What is Supply Chain Management? Supply Chain Management (SCM) is an important part of every organization, whether small or large. SCM is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. SCM also deals with the movement and storing of materials needed to create a product, as well as inventory management, and keeping track of finished goods from where they were created to who they go to.  Modern supply change management encompasses the strategic alignment of end-to-end business processes to realize market and econom...
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Store Management and Its Importance

What is Store? Store is an important component of material management.  Store keeps the materials such that the materials are well accounted for, are maintained safe, and are available at the time of requirement. Storage is an essential and vital part of the economic cycle and store management is a specialized function, which can contribute significantly to the overall efficiency and effectiveness of the materials function. The main processes of store are: to receive the incoming materials (receiving), to keep the materials as long as they are required for use (keeping in custody...
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How Material Management Evolved

History of Materials Management Material management as a discipline was rather slow to evolve as compared to production and marketing function. The growth of Material Management as a field of study and one of great relevance of business performance is of recent origin and have its root in the US economy. Over the years from the simple mechanism of exchange of goods and services it has transformed into a complex system of industrial production and commercial system. The supplies for manufacturing organization got disrupted during WW1, the shortage during the war and heavy inventories build up...
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