Tag: indirect procurement
At many companies, process optimization in purchasing focuses on direct material. The purchase of indirect material, however, often still takes place under the radar. Perhaps a bit overstated as; What is there to optimize, if I only purchase pencils? Read more
On March 14 and 15, 2017, the eighth e-solution conference sponsored by the German Association for Supply Chain Management, Procurement and Logistics (BME) was held in Düsseldorf. This event is one of the largest gatherings for e-procurement and e-sourcing in the German-speaking world. Read more
At many companies, the procurement of services – either on the basis of an e-catalog or via a free-text order – is still characterized by many inconsistencies. Internal ERP systems often support demand analysis and the approval process by the manager who oversees the budget in the SRM system. But there is often a discrepancy between the content of the order request from what should actually be ordered. In practice, the offer is often sent to the requisitioner by the service provider in an e-mail message or as a paper document – and then not included in the order request. Why does this happen? Because adding all the individual items from the offer to the order request involves a lot of work for the requisitioner. And he tries to avoid this effort.
The trend is shifting towards fully integrated purchasing solutions. It doesn’t matter whether you are dealing with direct or indirect materials; all product groups should be procured through a standardized process to ensure that companies can operate as efficiently as possible.
Robert Bosch GmbH was awarded the “BME-Innovationspreis 2016” for its innovative realignment of indirect procurement – a step which will further strengthen the company’s long-term competitiveness.
Integrated IT solutions form a key element of this realignment – and SupplyOn has made a decisive contribution in this respect: It is only thanks to the interplay between the in-house IT systems and the integrated purchase-to-pay solution from SupplyOn that is possible to tie in thousands of service providers and suppliers of indirect material and capital goods to realize a seamless end-to-end process.
In many organizations, the optimization of procurement processes and the resulting savings are primarily sought and found in the purchasing of direct materials. Some people still underestimate indirect purchasing and fail to appreciate its significance: “How can I possibly optimize buying a pencil?”
But indirect materials involve much more than pencils, pens, and coffee machines. There are far more important and complex areas, such as the whole of the company’s IT equipment, its office furniture and – not to be underestimated – the procurement of all kinds of services.
It really is well worth thinking about possible process optimizations in the procurement of indirect materials, which can achieve significant procurement savings. Read more
Requests for quotations for indirect materials are on the increase, but the related processes are often not continuous. Many companies wrestle with incompatible media because their process, from sourcing to ordering, uses disparate technologies. A lot of them purchase indirect materials using a standard SAP SRM system. Here, detailed workflow rules enable the person creating the shopping cart to handle everything right down to dispatching their order and logging the goods received. But when it comes to inquiries and requests for quotations, there is no cohesive system at all. SupplyOn has now closed this gap!
How does the SupplyOn platform manage to integrate the established RfQ process with your standard in-house SAP SRM system? Read more
Do you purchase services and find that entering the services performed is not organized consistently and cost-effectively? SupplyOn has developed a solution. The procurement of services is now common practice and offers many advantages, but often the administrative effort required prohibits the cost-effective organization of service provision processes.
For example, suppose you have engaged a software house to work for six months on customizing your financial software. You will naturally want to know how many of the contracted man-days the provider uses each month. At present, the service provider sends you a performance sheet in an e-mail, as a PDF document, or gives you the information by phone. You, the buyer, then have to log in to your system (e.g., SAP SRM) and enter the services performed by hand. On this basis the supplier submits a monthly invoice, or possibly only one invoice at the end of the contract period, since partial invoices are too labor-intensive. There are obviously a number of disadvantages to this process, ranging from manual data input to rising costs because of the buyer’s increased workload.
How can SupplyOn help you optimize the process? Read more
Why is that? In our view, the main reason is that, for office supplies, buyers know exactly how much of anything they need to order.
When ordering a service however, it is necessary to reach agreement with the supplier. SAP SRM does not support the process of negotiating with suppliers, and that explains why operating departments cannot simply buy services from a catalog.
SupplyOn has now solved this problem. Read more