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Future of Procurement
What do you consider important to automate?
Generation and transmit purchase orders to suppliers
What level of supplier data integration is typical for your industry?
Order and confirmation tracking
What is important in regards to order and confirmation tracking?
Supplier collaboration
How do we collaborate in different contexts?
Evaluate supplier performance
What metrics are important to you?
Procurement and inventory management policies
What challenges have you faced in aligning procurement and inventory management policies with changing business needs?
Make informed decisions based on accurate data and real-time visibility
What kind of information is important to you?
Risk assessment and mitigation strategies to minimize potential impact on operations
What specific risk assessment tools or methodologies do you employ to identify potential threats?
Continuous improvement initiatives in supplier relations
How do you measure the success of continuous improvement initiatives in supplier relations?
Supplier identification and selection
Which factors that matter in a Request for Quotation(RFQ)?
Negotiation and contracting – pricing, terms, and conditions
What are your key strategies for negotiating terms and conditions that benefit both parties?
Purchase requirements management
Figure 1: Purchase requirements management
The new purchase requirements management application identifies requirements for creating purchase quote requests (SRQ), or requirements to be attended to for timely replenishment of direct material through the creation of a Purchase order (SPO).
The requirements are all associated with created sales orders for stocked items or production work orders. This requires creation of production work orders throughout the product structure, to the lowest level of subassemblies.
Quote requests can be created based on requirements on accumulated quantities across several orders, by order, for subcontracting or based on sales quote requests. A quote can include several products and it can be sent to multiple suppliers for quoting.
A purchase order can be picked up as a requirement from the Purchase Request (PUR) application or forwarded a purchase quote directly into a purchase order for a specific supplier. Purchase orders from PUR can be based on accumulated requirements, requirements by order, based on Reorder points or for Subcontracting.
Create quote requests
The different tabs within the quote request in PUR should be used in a planned manner.
Time is of the essence for RFQ based on Sales quote requests. This is a collaboration between procurement and sales.
Subcontracting of external operations are also time critical, as these orders are already confirmed to customers, and the production work orders are created. Avoid unnecessary waiting time by promptly processing the requirements in collaboration between procurement and your production planners.
All requirements that should be associated with a specific order should be processed before reviewing the accumulated tab, as these should be reviewed in isolation form aggregated demand.
The purchase quote requests can include several parts and be sent to numerous suppliers, and each part can have independent documented requirements that can be disseminated through the quote request workflow.
Purchase orders
Purchase requirements must be handled in a timely manner, to ensure orders are set in time for the goods to arrive upon the planned consumption in production. The different tabs for Purchase orders in PUR should be used in a planned order.
Subcontracting will often be time critical. Process these requirements in collaboration with production planner.
For direct material:
Always review the products with reorder point first, to respond to changes in stock level that trigger replenishment orders.
Next, generate requirements that should be handled back-to-back based on sales orders.
The last, remaining requirements should be picked up on the accumulated requirements to generate demand-based batch procurement.
Take part in the discussion!
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We hope you've noted down some ideas to bring to the session and trust that you now possess a thorough understanding of the various purchasing requirements processes.
Most importantly, we want to hear from you!
We encourage you to bring any questions or feedback to our workshop discussions. Your inputs will influence the direction of our development.