As technology becomes more integrated with the way businesses are run, stronger importance is placed on connectivity and ensuring that any automated processes work in tandem to complete the intended tasks. ERP software creates a mainframe for an operation to run on, be it product planning, development, manufacturing, sales and marketing, and more.
Why ERP is needed in purchase management?
Think about the hours and effort that go into purchasing: creating tracking numbers, filing orders, checking inventory, making a purchase history, coordinating with suppliers, and so on. Purchase management ERP can simplify many of these tasks by automating them and providing accurate data results.
Let’s dive a little deeper into what the ERP software can do for your purchase management chain, below are the amazing features that definitely improve your purchasing process.
1.Seamless Purchase orders
This document is the core of procurement. It is a request to deliver something within a time constraint. This should be common to every ERP system. Every ERP purchase order is broken down to include a PO Line, each line refers to a single specific item and releases where multiple delivery dates can be specified.
2.Quick Card Payment support
Often procurement is completed without a purchase order. Card payment is quick and easy and avoids the necessity of establishing credit between the parties for a single purchase. ERP manages these transactions directly through financial processes where the general ledger account is posted without a purchase order receipt. Some can even process the payment clearing through integrations with payment processors.
3.Easy Contract management
The importance of contract management within an ERP purchase module comes down to ERP’s role as the financial hub of the business. With accounts payable and receivable integrated with contract management, missed deadlines or milestones should be a thing of the past.
4.Get access to the Supplier database
ERP should have databases to record the suppliers and vendors from whom purchases of materials and services are procured. The databases will have names and addresses, the commodities the supplier can provide, tax identification data, and a related database with contacts.
5.Crystal clear Supplier audits
Procurement includes supplier audits and ERP should support quality assurance at the same time it supports procurement. We can expect quality assurance to be used by the supplier and performance verification will ensure something is made or supplied in the way we want. An audit, generated by ERP, from purchasing, engineering, and quality personnel can verify our expectations are met.
ERP is an all-in-one solution to improve your purchase process!
With all the tasks and processes that are required for purchase management, it makes sense to utilize software solutions to help take some of the load off. Not only can ERP reduce inventory errors and provide more accurate analysis of product sales, but it can also assist you in providing top-of-the-line customer service and ensure that purchase never goes missing. It’s an all-in-one solution to help you manage your business while saving you money on labor costs as well.