Procurement is defined as procuring process that ensures total cost of ownership by controlling the effectiveness of quantity, quality and time. It is used by medium to large organizations for rationalizing and assimilating their complete process of procurement. In Enterprise Procurement the complete process is rationalized from the starting point till final transaction settlement and delivery of products. With its help medium to large organizations can squash costs and inadequacies from procurement processes that result in producing lower cost from suppliers.
In Enterprise corporate and government Procurement system “out of the box” applications are currently installed which help them during numerous transactions that occur at various points during the purchasing process that allows payment triggering and subsequent processing. With the help of this application, distributions can be combined with specific requirements of the organization’s financial management system.
In simple language, we define procurement as one of the simplest way of purchasing goods with a supplier. It’s not just a simple way but can also be complex if involved with group of suppliers that ties to obtain quantity, quality, and delivery into a production process. Multiple stages are included in procurement process like information gathering, obtaining information about potential suppliers, checking rating and reviews about suppliers, settlement price and terms of suppliers, Installation and delivery charges, overall maintenance and at last recording relationships with the dealer.
The need of enterprise procurement process is that the company you are hiring will always provide fair and best possible prices that are available in the market. It is best for managing overall management structure of the organisation. With its help flow of cash and balance sheet can be traced along with information related to holding supplies and information regarding payment of suppliers not matching with payment received.
The purchasing process involved is mentioned below:
1.The process of buying begins with a demand of having a need to obtain products and services from a dealer. After accessing procurement application of organizations, the requisitioner joins the authorised supplier catalogue via the Internet.
2.With the help of various search techniques, the requisitioner search the online catalogue and save the selected good/services in their online shopping cart.
3.when dealer checkout from the online catalogue then the online data available in that cart is sent back to the company’s Enterprise Procurement application which reflects the items available in their shopping cart represented in the requisition as line items.
4.According to the organizations rules and regulations the application is electronically routed for approval. Based on the approval a purchase order will be created and forwarded to the dealer through internet or any other mode.
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