Importance of e-Procurement

Traditional procurement methods vs IT procurement process Procurement methods involve the process of finding, agreeing to terms & acquiring goods or services. Though this sounds pretty simple and straightforward but only the experienced know how difficult it can get with a multi-layered process that involves tedious steps. A traditional procurement methods starts with the identification of needs followed by an extensive process of exploration of supplier options to finally arrive at finalization of the supplier by fixing the price and all other terms including payment options, delivery...
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How Material Management influence Project Performance

Importance of Material Management: Material management is directly associated with the operational efficiency of an organization. A good material management system ensures the availability right materials in the production process with minimum wastage so as to cut losses. Here are the few ways which show the importance of material management and how it influences your project performance: - Time Time is widely recognized as a primary criterion for performance measurement. Poor material management can have a negative effect on project time, like the insufficient stock of materials, lead ...
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Practices that can improve Material Management

Why improve Material Management Any avoidable amount spent on materials or any loss due to wastage of materials increases the cost of production. The objective of materials management is to increase the efficiency in materials cost on all fronts and to optimize the overall result. Materials management refers to controlling the kind, amount, location and turning off various commodities used in and produced by the industrial enterprises. It is the control of materials in such a manner that it ensures maximum return on working capital. Most common ways to improve Material Management involve: - ...
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Functions of MM system

Basic Functions of MM system MM system is basically divided 9 major sectors that include: 1.) Basic setup 2.) Stock Management 3.) Material Requirement 4.) Budget management 5.) Pre-procurement activity 6.) Procurement activity 7.) Material stock 8.) Physical Inventory 9.) Reports   The functions of MM system includes: Basic Setup This includes basic setup of MM system i.e. setup related to: 1.) Item - Item codification i.e. assigning specific codes to items, Item attributes – A general description of various attributes of the item and UOM management...
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Why Industries need a Material Management System

Importance of MM Operational efficiency in an organization is heavily impacted by their material management. If you want your industry to be as efficient as possible in production operations, then mastering material management should be a big part of your plan. A proper and efficient material management system will also contribute to customer satisfaction and the overall success of the company. In many ways, it is the backbone of the manufacturing process. The main reasons behind the importance of MM system to the manufacturers are: - 1. Increase inventory accuracy: A poorly managed inven...
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How to estimate cost of ERP implementation

How to estimate ERP implementation cost Implementing an ERP is a major project for the industry and it is necessary to do proper research before going for an ERP. Before deciding to go for an ERP one should figure out how much its gonna cost to your organization. Cost of ERP implementation is not constant. It is different for different organizations; even similar type of organization can have different ERP implementation cost. It depends on what the organization needs, type of the organization, size and even location of the organization. The factors that should be taken into consideration whi...
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How companies are becoming data driven

Taking decisions based on intuition is a thing of the past; companies now make decisions based on data. Making data-based decisions are backed by many institutes and senior executives, for instance, Mckinsey Global Institute indicates that data-driven organization is 23 times more likely to acquire customers, six times as likely to retain those customers, and 19 times as likely to be profitable as a result. Organizations tend to think that they do not have enough data but the truth is most organization have more than enough data to make well-informed decisions, the problem comes organizing ...
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Database & Data warehousing

Database  A database is a way to collect the information about a business in an organized manner so that it is available when needed to the person who needs it.A database is a collection of schemes, tables, queries, reports, views, and other elements. Data in the database can be changed i.e. updated and new data when acquired can be put into the database. Database typically organize the data to model aspects of reality in a way that supports processes requiring information, such as availability of particular laptop that the customer wants or availability of rooms in hotels in a way that su...
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Evolution of ERP

Steps in the Evolution of ERP ERP is one of the major part of an industry and using it correctly will help in making the industry more efficient and optimize their supply chain, however ERP didn't came to be suddenly, evolution of ERP occurred in a timely manner and it evolved as time passed and finally came into the form we know. It started in the form of a inventory control system in 1960. Looking at how beneficial a computer based database is for industries and in response to Toyota manufacturing program Joseph Orlicky developed material requirements planning (MRP) in 1964. The first co...
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Optimize inventory through IT(Dell’s inventory obstruction study)

How inventory optimization can be done with IT/ Role of Technology in Inventory Management Inventory has always been a cause for concern for most of the business. Whether you should always be prepared with stocks in your inventory but face the risk of stock deterioration or you just have enough stocks in your inventory to fulfill your orders(also called just-in-time delivery) but face the risk of total debacle in case of some unforeseen disaster like natural disasters, terrorist attack or a labor strike. So which one should you go for? There is no exact answer to this question you can eith...
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