BENEFITS OF PURCHASE MANAGEMENT SYSTEM – ENTERPRISE SOLUTION FOR DIFFERENT PROBLEMS
What do businesses look for in the purchasing management module?
Is the correct implementation of the purchase goal, reducing errors. The purchasing module includes all purchases or leases of the enterprise, including: purchasing input materials, tools, apparatus, assets, renting warehouses, services… What are the benefits of purchasing management module?
Let’s see the benefits of purchasing management module and what problems does an ERP system help solve?
Problems in purchasing management
– Time is the core issue in this situation. It is difficult for businesses to determine when the best time to buy is due to lack of information.
– Can’t control the amount of goods to purchase. The synthesis must be done through each part. Data is inconsistent and inaccurate.
– Difficulty in tracking orders due to the individual management of the business.
– Information must be entered many times for each department, difficult to manage.
Benefits of Purchase Management Module brings
– Right item: make purchases based on the required information of each part on the system.
– Correct amount: buy just enough needs, minimize costs incurred.
– On time: goods have the right on time to use which helps reduce inventory costs. Ensure the operation progress of related departments such as production department, delivery department…
– Verified information: information is updated uniformly on the same system. Therefore only need to enter the data once to reduce the time to perform manual operations such as entering data, tracking orders… The system has complete, accurate and real-time information.
– Manage price strictly.
The purchase process will take place in the following order:
Requests from departments -> approvals -> purchasing department receives information on the system -> performs operations on the system, gets quotation information from suppliers -> the system makes a quotation of suppliers -> analysis system, choose the best supplier -> buyers refer to the quotation sheet and make a purchase decision.
– Support many forms of purchase
+ Purchasing module of the ERP system supports many forms of purchase: Multiple purchases, contracts… with a variety of currencies in transactions.
Some issues to note when applying to fully exploit the benefits of the purchase management module
The correct procedure must be followed to ensure exact information on the system. Avoid the situation that businesses can’t control purchase or manage inventory due to delayed updating of information.
Record goods when they entering to the warehouse immediately and keep tracking inventory information for real-time data. If it has any additional invoices, they will be recorded later. In this case, the warehouse will have goods in stock without invoices and goods in warehouses with invoices.
Thanks to data communication transfer smoothly, Information will be entered as soon as a transaction is performed, and that data will be used by the person performing the next transaction. If there is an error, it will be detected immediately, so that the information will be corrected promptly, accuracy saves time and effort for data collation after each process.
Complying with the implementation of the multi-level approval process, if the following procedures are not performed correctly, the following operations will not be possible, leading to the whole process of the module will be stopped.
Enterprises need to coordinate closely with the implementation unit, always be ready to change, and follow the new process to fully exploit the benefits that the ERP system contributes, as well as the “benefits” of the purchasing management module for businesses.