How to make the most of your ERP?s procurement module, and how the IoT can help
The benefits of ERP software are many and varied — everything from creating multiple automated systems to handling human resources tasks to organizing manufacturing and development. Yet it’s easy to get lost in all these features and forget that ERP can be a powerful asset to your company’s purchase management. While it’s true that ERP can improve business connectivity as a whole, it also provides a significant boost when it comes to purchase order writing and tracking. ERP can help enhance your supplier management by taking a lot of the ins and outs of procurement off of your plate, freeing up more time for you to focus on other areas of your business.
Let’s dive a little deeper into what the software can do for your purchase management chain, as well as how it’s affected by the Internet of Things (IoT).
How ERP assists 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.
As Top 10 ERP puts it, purchase management modules can handle tasks such as purchase order writing and supplier performance tracking, among other processes. There’s also the option to create planned receipts to inventory or a job, as well as creating detailed purchase history files — “which provides continual reference to aid in making purchasing decisions”. It concludes: “With Purchase Management, you can reduce inventory levels, improve on-time deliveries, enhance your cash flow, and increase your profit levels.” It’s a far better solution than leaving delivery tracking and supplier management to employees — a system that’s highly prone to human error.
Here are some of the most useful features contained in procurement modules:
Purchase orders: As “a request to deliver something within a time constraint,” this is what every ordering system needs. ERP purchase orders can include specific lines that refer to specific items, and they can allow for multiple delivery dates to be specified.
Contract management: Referring to ERP as “the financial hub of the business” is accurate especially when it comes to managing contracts. It means that you don’t have to worry about fumbling missed deadlines or missed payments — the software module takes care of all of it for you.
Supplier database: Essential for companies that order multiple parts and materials, the ERP supplier database records suppliers and vendors that provide particular services. From names and addresses to commodities offered and tax identification data, this database collects and organizes all the supplier information you’ll need.
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