Purchase and supplies areas are constantly facing the challenge of keeping costs under control. To
produce results, it is important to influence suppliers of goods and services and all activities that involves staff expenditures.
The managers of these two areas must also control the cost of all processes involved. If those processes are outdated and inefficient, with a great deal of paperwork and Exchange between different systems involved.
As companies grow, the pressure on purchase and supplies only increase. At the same time, headcount is kept on a short leash and sometimes even suffer cutbacks to reduce cost.
With no additional staff, managers have no choice but to review their procurement-to- pay processes.
This is not only a leap in technology leap, but rather a strategic step to meet growing demands.
High-end technology brings two problems. One is the high cost and the second is the long time it may take to be put to use. Since the pressure is almost always to reduce costs fast, managers find reason not to adopt technology to help them face the challenge.
As we analyze possible scenarios, one of the best options from a ROI standpoint is to manage purchase and supplies growing amount of information through an e-procurement solution. The modern application automates all routine tasks and improves supplier-employee collaboration. Your company reaches significant gains in productivity while speeding purchasing cycles.
Oracle Procurement Cloud stands out as an easy-to- use and encompassing e-procurement solution. This technology has a high payback rate as it fits a whole different range of purchasing processes, helping managers to reach excellence service levels through a cloud based solution.
Click to check the main challenges of each step of the process
Oracle Procurement Cloud solution is completely modular and includes all steps of the purchase cycle,
no matter what you need to purchase or the type of supply chain. Some of those steps are:
- Master data – This process unifies data that is constantly used by the supply chain.
- Supplier screening – this process involves qualifying of suppliers for different types of purchase.
- Negotiation with suppliers – Process that includes different negotiation strategies and practices
up until the purchase is made.
- Supplier follow-up – Process that involves follow-up with all suppliers.
Click on the image below to check in detail the problems a purchase and supplies manager faces in each step of the process. See:
Types of purchase in procurement management:
Since each company has its unique purchasing process, an e-procurement solution must add value to
each single different process within a supply chain. Oracle’s solution is designed to plug-into any specific
type of purchase. Here are some examples that fit perfectly with our e-procurement solution:
- Blanket Order: it’s an order with multiple delivery dates along a period of time. It is based on a
supply contract with pre-established prices, quantities and delivery conditions, normally used for large quantity recurring purchases.
- Price catalog: purchases based on a set price contract with one or more suppliers with open
quantities, pending only of an item requisition.
- Purchase for projects: all purchases bound to a specific contract or project with its own budget.
- Spot purchases: non-recurring purchases or sporadic purchases of items when there’s a need to
specify the items and then go through all the negotiation with suppliers.
Modernize your management with a high-tech procurement solution:
Modern purchase processes start with the standardization, automation and simplification of all actions, from requests to payment. An e-procurement solution must therefore facilitate processes, upgrade the quality of purchases and organize all company demands. The concept is to go beyond a simple process support. A robust e-procurement solution delivers real results.
With Oracle Procurement Cloud you reach a more efficient organization – one that is effective and relevant for cost control. You bring methodology and intelligence to pick better suppliers, to comply to company policies and managing supplier related risks. Oracle e-procurement will help you deliver:
- Control over spending and savings to assure better profit margins,
- Boost efficiency and influence of procurement area within the business,
- Bring innovative strategies without higher costs through a top-notch architecture.
You can check more information at Oracle’s website clicking here.