1. Home
  2. ERP
  3. Purchasing Management

By: Peter Poletti


Purchasing Management Functions & Features

Purchasing management encompasses a group of applications that controls purchasing of raw materials needed to build products and that manages inventory stocks. It also involves creating purchase orders/contracts, supplier tracking, goods receipt and payment, and regulatory compliance analysis and reporting.. Purchasing Management Functions & Features are an important module of the comprehensive ERP RFP Template for Discrete Manufacturing.

The ERP RFP template with Purchasing Management Functions & Features for ERP is a Microsoft Excel spreadsheet (.xlsx) featuring a total of 3761 decision criteria. The ERP RFP template allows you to quickly and easily prepare the business, functional, and technical requirements sections of the solicitation package you'll send to ERP software vendors. It ensures for:

  • complete response from each ERP software vendor
  • deep and accurate evaluation of submitted ERP proposals
  • impartial side-by-side comparison of ERP solutions evaluated
  • rational and documented selection of the best matching ERP system

The ERP software comparison report can save you up to 90% of the time you would have otherwise spent comparing all the ERP solutions from scratch.

The Purchasing Management Functions & Features comprise the following elements:

  • Management of POs

    Modules include Entities within a company link to a common legal entity (for example, business units, plants, sites, etc.);Consolidates enterprise-wide purchasing as a central unit;Products classified within a purchase class default to a main vendor;Verifies (and holds if necessary) receiving transactions on the basis of controls defined during purchasing;Internal processing lead times provided based on products and warehouses;Retain PO data for audit purposes (PO with electronic approval);. Management of POs, Purchasing Management Functions & Features
  • Online Requirements for Purchasing Management

    Online tools and portals are increasingly used by organizations for supplier interactions. In order to make communication efficient for both parties, these tools should provide functionality such as information on all available suppliers; the possibility of creating purchase orders with advanced options (e.g., define frequency, define delivery method, define payment methods, etc); collaboration that will allow changes to be easily communicated to suppliers, etc.). Online Requirements for Purchasing Management, Purchasing Management Functions & Features
  • Profile of Suppliers

    Major modules include Fields for supplier data such as shipping methods, item references, and conditions;Suppliers may have more than one address;Store e-mail addresses, web sites, and fax numbers in vendor profiles;Associate items with vendors' descriptions;Code different vendor production lead times, taking into account both supplier lead time and transport time;Bill-to-entity information including currency, bank, account number, and mode of payment;. Profile of Suppliers, Purchasing Management Functions & Features
  • Pricing

    Modules covered Price and discount table corresponds to individual suppliers and items;Automatic update of an item's record based on the item's most recent purchase price;Orders may be discounted manually or automatically based on the order line;Price adjustments such as quantity discounts are determined from a grade table;Vendor price may be changed for a product class in multiple vendor agreements;Pricing and discounting tables include effectivity dates;. Pricing, Purchasing Management Functions & Features
  • Rating of Suppliers

    Major modules covered Year-to-date description of purchases in dollar value, by supplier;Goods delivery times are maintained as statistics for each supplier;Twenty-four month statistical performance data;Average of early days and late days delivery;Rejected salvaged in number and dollar value;Analyzes suppliers' PO fulfillment performance based on significant data points such as cost or price and quality;. Rating of Suppliers, Purchasing Management Functions & Features
  • Requisitions and Quotations

    Major modules covered Users can manually enter requisitions, which update along with automatic entries;Procurement system allows multiple line items and delivery schedules;Quality codes included on purchase requisitions;Requisitions can be approved in real time;Processes requests for quotation (RFQ);Manage and update supplier's quotes for particular items;. Requisitions and Quotations, Purchasing Management Functions & Features
  • Vendor Contracts and Agreements

    Feature and functions covered Agreements with suppliers may be discounted at different levels including the product level, product class level, and a level for general terms;Agreement number designating common terms;Defines normal contract and special contract types;Contract effectivity dates (start and end);Users may enter agreement start dates (a signal date);Contract terms may specify ranges for delivery dates and quantities;. Vendor Contracts and Agreements, Purchasing Management Functions & Features
  • Reporting and Interfacing Requirements for Purchasing Management

    In order to track the efficiency of the purchasing department, organizations need to access statistics and reports on what has been ordered compared to what has been received; the quality of the services provided by each supplier; price comparisons between different suppliers, etc. These reports are useful not only for the purchasing department, but also for other departments that depend on goods received, such as production, sales, and accounting. Reporting and Interfacing Requirements for Purchasing Management, Purchasing Management Functions & Features
  • Repeat Procurement

    Procurement is the process of acquiring the goods and services required by an organization to fulfill its objectives (manufacture products, maintain assets, etc). Depending on the type of resouces and their use, the frequency of procurement can vary from very low (as for capital goods) to very high (as for raw materials). This criterion refers to medium- or high-frequency procurement. Repeat Procurement, Purchasing Management Functions & Features
  • Procurement Reporting and Online Reporting

    Feature and functions include Requisition report and query;Purchase order report and query for planned POs and released POs;Purchase order status and follow-up reporting or querying;Purchasing action recommended according to material requirements;User-defined parameters for PO and receipt exception reporting;Released purchase orders traced by part number;. Procurement Reporting and Online Reporting, Purchasing Management Functions & Features
  • Receipts for Procurement

    Receipts for procurement refers to the criteria related to the reception of ordered goods from the supplier. Between the moment when goods arrive and the moment when they are physically stored in the warehouse, there are a few factors that need to be taken into consideration, such as the quantity of the good received (Does it correspond to the quantity ordered?); the quality of the goods (Were the goods damaged during transportation or handling? Did perishable goods expire before getting shipped?); and pricing (Did the price of the goods delivered change due to unexpected factors?). Receipts for Procurement, Purchasing Management Functions & Features
  • Purchase Orders (POs)

    This covers MRP requisition converts to a purchase order;Conversion of a planned purchase order to a PO electronically forwarded to vendor automatically;Manually enter and send purchase order;Assigns sequential PO numbers automatically;Purchase order types including standard PO, blanket/contract, subcontract order/operation, purchase request, and return-from-stock;Purchase orders for miscellaneous (non-inventoried) items "Fast Path";. Purchase Orders (POs), Purchasing Management Functions & Features

TEC Advisor can save you up to 90% of the time you would have otherwise spent figuring out on your own which ERP solution is the best for your needs.

Compare Now!
Functions and Features