Posted on 2020-11-20
It is a vital need for organizations to purchase goods and services to continue its operations in the supply chain.
The evolution of the purchasing process had begun making its mark when it was considerably becoming a huge winning factor even in the first World War. You may think that a World War does nothing but chaos and deaths. We’ll technically speaking, we all agree with it. However, it did give us a few bright sides. From learning on how to efficiently maintain stocks of wartime goods, industries nowadays took advantage of the ever-evolving technology and had adopted these methods to have a better supply chain management.
Technology-Aided Procurement Process
Paperless-driven process. Modern technological tools offer out-of-the-box solutions for better structured methods and streamline the procurement process to deliver the best results an organization can have.
Here as some major benefits:
What mentioned above are some of the strengths of having a good procurement process but there are still more. One of the implied benefits here involves even beyond inside an organization. Suppliers get a better chance to know their performance and keeps them on-track in competing in the market by maintaining quality of their goods/services.
Major Challenges in Procurement Management
Numerous firms don’t have an effective procurement system in place, usually a result of depending a manual, paper-based forms in a repetitive and time-consuming manner.
Disadvantages of manual procurement system plans are usually the following:
Using manual procurement management procedures are usually prone to loss or misplacements of documents, slow approval route processes, high processing costs, relationship and agreement between suppliers and more
Procurement Management Automation
Procurement management automation offers a wide range of advantages and benefits, including:
The ISO Purchasing Procedure defines the methods your company will use to procure/purchase materials, supplies, and services used to produce goods and/or services in conformance with ISO 9001:2015.
This procedure applies to the purchase of all inventory items, supplies, materials/ingredients, subcontracted services, and capital equipment affecting quality of your company’s products and processes.
ISO PURCHASING PROCEDURES REFERENCES
The SOLUTION – NXPERT ONE
(Transforming manual procedures to highly efficient system and Improved real-time operations)
· Easy Access to Data
With the click of a button, you can easily access important documentation from anywhere through online.
· Automatic Data Retention & Digital Backups
Staffs are no longer required to manually create backups of every document when it can be done digitally with NXPERT One Software. Data can be located automatically on a cloud –based system. This enables digital data to be accessible through online as opposed to a single paper source, reducing risk of damage, loss, or misplacement.
NXPERT One Solution offers wide and dynamic modules to solve and aid the challenges from your manual procurement management into an efficient system and improved operations. There are 5 main functions that we can automate that will save your time and money while improving productivity.
Purchase Requisition (PR)
NXPERT One - PR’s process has systemized routing procedures from PR Entry, Recommend, Review and Approval that are in place so that section staff members can creates a record of their requested items, from a list of approved vendors. Instead of making purchases from wherever they want, whenever they want - with NXPERT One, department heads can allocate budgets and set user permissions so that only the people with the correct authority can only request and approve PR transactions.
On Nxpert One Software there are data for canvassing of items on what is the lowest price with high quality products. Using these data you can choose the suppliers/vendors that best fits in your needs.
Supplier Purchase Order
Upon Approval of PR entries – it will then be processed by the System PO Generation and proceed with the PO Process which also has routing procedures until approval and suppliers confirmation.
Supplier Invoice Process
After PO processing – the vendor will submit an invoice for the arrangement of payment terms and the actual price and items to be delivered. NXPERT One Software, processes the invoice to digitize checking information to proceed with Supplier Invoice Approval.
Receiving of Actual Items – For most firms there is a receiving Area where the items or goods are delivered. Personnel should be knowledgeable from accepting deliveries to verify count and quality accuracy, proper inspection of goods to make sure there are no damages, secure, clean and organized storage for the gathered materials, packing assignment, up to the finished goods When everything is in order, the system automatically forwards the invoice to the accounts payable department where it is approved for a final payout.