Procurement process comprises of certain steps which streamline the bulk purchase at the best possible price and time. This includes freezing requirements, supplier search, analyze product value, purchase request, conversion to purchase order etc.
The traditional procurement process is quite cumbersome where searching the manufactures or suppliers is a very tedious task. But you can easily optimize your procurement process using e-procurement. E-procurement will –
- Automate procurement process.
- Ease the search for suppliers/manufacturers.
- Eliminate supply chain issues like the variation in lead time, seasonal demand, uncertainty in demand-supply, change in prices, etc.
- Easy control on – what products, in which quantities, from which supplier, and when to order.
Note: Webkul offers Purchase Order extension for various platforms – Magento 1, Magento 2, Opencart, Prestashop, and Shopify.
Features of effective e-procurement in your B2B:
Dedicated Supplier/Manufacturer Database
Create a centralized location to have a record of all the supplier/manufacturer. This will let quick sourcing for quotations from the suppliers on a single platform.
Vendor Catalog Management
For a smooth and quick creation of quotations, you can assign the suppliers/manufacturers to the product. First, select a supplier from the list and then add products assigned to that supplier in the purchase order. This will ease the incommodious search made for suppliers.
Automatic Draft Quotation
A draft quotation will be prepared automatically when the product goes out of stock. The draft quotation will be prepared for the supplier according to the mentioned priority, minimum quantity, and the cost price.
Easy Purchase Order Flow
Purchase order plays vital in the procurement process. Therefore for the smooth procurement process, purchase order flow should not be complex right from creating the quotation to its approval.
The purchase orders should display the proper status to track the progress of the PO. This will not only help in setting clear and transparent expectations but also in managing the tasks.
Detailed PO Form
The PO should display clear and detailed information. This will help the supplier/manufacturer to get to know the requirements more easily.
An incoming shipment is created for every new purchase order created so that admin can track the shipment with detailed information of the items ordered.
For more effective shipment, you can also include –
- PO Merging – Merge purchase orders in a single PO when you have multiple purchase orders for the same supplier. This will reduce shipping cost and time as well.
- PO Splitting – Split the purchase order into multiple ones when product quantity is so large and single supplier can not full fill the requirement in a single shipment.
Backorders and preorders play an important role in balancing the supply. Suppose you are updating the inventory but you found that some products are damaged which are not saleable.
Then you need to create backorder/pre-order for those damaged products before updating the inventory otherwise accurate stock management will not possible.
Convenient Order Edit/Update
Updating or editing the orders should be glitch free without making calls and sending emails for order updates to suppliers/manufacturers. But this feature will work only for the orders that have not been processed/shipped yet.
There should be a quick reorder feature which will eliminate the re-entering of product details when ordering the same products again.
If you have any issue, please feel free to add a ticket and let us know your views at https://webkul.uvdesk.com