What is Procurement Management? Recommend a domestic easy-to-use procurement management system

Procurement management involves all the procurement processes of materials, services, goods, and products that a business needs in its operations. These supplies are used to support the company's day-to-day operations and ensure its smooth operation.

"Procurement" refers to the purchase of services, products, or materials necessary for business operations, usually on a large scale. This process involves two companies: one company sells products, services, or goods, and the other company buys those supplies. Procurement refers only to the activities of the buyer and does not include the actions of the seller.

The type of procurement management

There are three types of procurement management: direct procurement, indirect procurement, and service procurement.

1. Direct Procurement Management: Procurement of materials directly for production, such as raw materials and mechanical components. Manufacturing companies often adopt this type of sourcing to build long-term relationships with suppliers.
2. Indirect Procurement Management: Procurement of goods and services for internal use to support the day-to-day operations of the business. The procurement team builds short-term relationships with suppliers.
3. Service Procurement Management: Responsible for the procurement management of temporary labor and services, usually handled by specialized departments, such as software subscriptions and transaction contracts.

The stage of procurement management

1. Identify needs: Identify what the business needs and prevent problems in the procurement process by communicating with stakeholders.
2. Clarify specific requirements: List the specific details of the required materials in detail to ensure accurate procurement.
3. Choose the best supplier: Research and evaluate suppliers, get quotes, and select the right supplier for your needs.
4. Get quotes and negotiate: Request quotes from suppliers to ensure a fair and transparent selection process.
5. Purchase requirements: The purchase order should contain specific details and be approved by the competent authority to ensure accurate procurement.
6. Delivery Order: The supplier delivers the order as per the contents of the contract, and the buyer company should check the quality and quantity of the items.
7. Product Inspection: After delivery, the buyer's company checks whether the item is in accordance with the purchase order, approves or rejects delivery.
8. Payment: After the delivery is approved, the payment is made, making sure the details of the order are correct.

The importance of procurement management software

Procurement management software is essential for businesses to ensure that business operations run smoothly, save time, money, and resources, provide a competitive advantage, and help companies build strong relationships with their suppliers.

Components of procurement management

1. People: The number of people involved in procurement management depends on the size of the company, with smaller companies having fewer people and larger companies having dedicated teams.
2. Process: An efficient procurement process is essential to business operations to ensure that procurement management runs smoothly.
3. Records and paperwork: Keeping digital or paper records helps keep track of all the activities of procurement management and is also very important for future legal actions.

With the advancement of technology, procurement management software continues to develop, which improves the procurement management ability of enterprises. Regardless of the size of a company, procurement management software can make business operations more efficient and provide businesses with a significant competitive advantage.

Procurement is critical to a company's success. Executing different types of purchases effectively will help you reduce costs, improve supplier relationships, and increase profits. Use software to automate multiple parts of the procurement process to reduce workload and improve overall efficiency. There is a procurement management system template in the white code software center, and you can also enter the white code platform to experience the system, and feel the efficiency and convenience of the white code procurement management system through actual operation.