Procurement processes are not exempt from ICT progress

| 0 Comments

MosesManuel_100.jpgFrom a broader point of view, development in information communication technology (ICT) has radically changed the manner in which people conduct business. Speed of communication and information exchange mean that you can offer real-time answers to customer enquiries, process transactions and convert potential leads into paying clients.

"The procurement process is no exception to these changes", says Moses Manuel, a lecturer in business, legal and development-related studies and founder of the Zerite Network.

In the procurement profession there is often a mixed experience when it comes to technology, in the sense that some people in procurement departments will go for enterprise resource planning (ERP) systems and purchase-to-pay (P2P) systems, while others may choose to rely on old stock control systems and spreadsheets.

For most organisations, procurement or otherwise, the question of whether to adopt or not adopt technology often comes down to performance and returns. The differential goes like this:
i. Automated processes should result in better performance than manual processes.
ii. The technology should achieve cost efficiency.

The Internet, for example, which is the foundation of e-procurement systems, has afforded the procurement function a number of benefits, such as:
- Improved supply chain relationships and co-ordination, arising from data sharing. Remember, in supply chain networks, the success as far as upstream and downstream operations are concerned will be reflected by the degree of collaboration and informed customer service.
- Organisations get to maintain low inventory levels and efficient stock turnover since they can safely rely on just-in-time (JIT) systems given that information is quickly relayed and responded to.
- The choice of suppliers will increase as the Internet gives access to global and local suppliers. Although, despite technology like the Internet pointing you to these suppliers, you will still have to make strategic and tactical choices on your own.
- Organisations get to save on procurement costs through electronic communication, greater accuracy and electronic transaction processing.

As far as the procurement process is concerned, there are three primary parts to improving procurement capability: people, process and technology. Most procurement managers tend to focus only on the first two.

E-procurement can be used in requests for information (RFIs), requests for proposal (RFPs), requests for quotation (RFQs) as well as e-tendering, e-auctions, vendor management, catalogue management, purchase orders, e-invoicing, e-payment and contract management.

The need for technology in procurement should not be driven by the technology itself but by the need for process improvement to meet the objectives of an organisation and its customers.

Zerite Network

Leave a comment


 

 

Career opportunites

Commodity Manager

  • <500 000 Commodities Gauteng Procurement Management
Are you a Commodity Manager looking for the

Supply Chain Professional

  • <500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Supply Planning

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer Procurement Consultant
Are you an Industrial Engineer looking to make

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Supply Chain
Seeking vibrant industry specific individuals seeking new opportunities

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for an Operations Manager to take into

Supply Chain Systems Administrator

  • >500 000 Gauteng Procurement Management Strategic Sourcing Supply Chain
One of South Africa's leading, mining companies is

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Procurement Management
Are you an experienced Logistics Manager looking for

Continuous Improvement Manager

  • >500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Warehouse Assistant

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory
I am currently looking for ambitious Demand Planner,

Internal Procurement Officer

  • <500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Position Available: Internal Procurement Officer Status : New ...More

Supply Chain Officer

  • <500 000 Gauteng Procurement Officer / Specialist Supply Chain
Seeking dynamic candidates to take to the market

Supply Chain Planner

  • <500 000 Free State Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Senior Buyer

  • >500 000 Buyer Gauteng Procurement Management
Tech-Pro specialises in placing professionals in the Supply

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer
Tech-Pro specialises in placing professionals in the Supply

Warehouse Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Supply Chain
Seeking hands on individuals that come from an

Manufacturing Purchasing Specialist

  • >500 000 Procurement Officer / Specialist Supply Chain Western Cape
A leading auto manufacture company based in Cape

Procurement Sourcing Specialist

  • <500 000 Gauteng Procurement Consultant Strategic Sourcing
A Leader in the Supply Chain industry is

Planning Manager

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for Planning Managers to take into the

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Supply Chain
Are you an experienced Logistics Manager looking for