When deploying and online E-procurement application, it is crucial to analyze each section’s procurement process flow to ascertain a baseline set of rules. Each region within the enterprise has evolved their own standards which best suits their needs, regrettably, these criteria were based on company practices established in the early 90’s.Today, many companies want to Increase throughput and streamline the approval process but cannot because their manual procedures fall down because of the inability to handle the volume of orders. Consequently fixes like blanket purchase orders were put in place which may streamline the ordering process but decrease oversight and controls.
When implementing an online E-procurement solution, the notion of dollar based threshold paths can help create a more efficient manner of approving purchases orders and maintain accountability and controls. A management policy has to be set up before the process can be produced, but this is generally not a problem if the overall objective is to deal with the volume of purchases in a successful way. Essentially a dollar based rule can be designed to the approval procurement process which enables all purchase requisitions under a specific amount to be accepted by lower level administration. As the purchase requisition increases in amount, higher level management is pulled into the approval process mechanically. Using an e-procurement platform to help in implementing this sort of process can be quite helpful in directing buy orders to the ideal approvers at the ideal time.
Implementing an e-procurement Tool to help simplify your approvals is not difficult as soon as you have got those principles defined and mapped out. Redefining the acceptance process and adhering to a best practice model to determine threshold levels will have to be developed as policies initially, but once set up, can increase processing throughput without increasing workload. In Conclusion, implementing E-procurement with dollar established threshold paths can help a company become more effective as their procurement process flows become more compact without sacrificing accountability and controls. Lastly, implement innovation and secure best possible price. Never prohibit tenders. Never be too Prescriptive on how you want the job to be rendered. Describe the results you need. Try to look for ways in which veteran contractors and suppliers can Bequeath their expertise and knowledge and allow them to innovate and provide you their ideal solutions.