Procure to Pay
How E-Procurement and E-sourcing work together!
Purchasing on contract is the goal of every purchasing manager. It is a very simple strategy; find and negotiate the best price and provide the contract to your organization:
1. The purchasing department puts out a bid for commodities or services
2. The terms of the contract and associated pricing is established
3. The enterprise can now purchase using these prices.
City, State and county governments are required to bid out contracts for commodities and services and have a well established process to create the proper terms and contracts. Using online bidding software can create an easy way to get the items out to various vendors without near the effort a manual process.
The items are added to the tool, the Terms and conditions are attached and the bid facilitator publishes the bid to vendors across the country. Once the bid is opened with a click of a button the agency now awards the products based on their criteria.
With an e-procurement platform, converting this bid into an online catalog is simple to do. The internal conversion utility creates an online catalog that the entire organization can now utilize. Purchase requisitions now begin to flow using the contracts established by the e-sourcing tools making the purchasing managers job a whole lot easier.
These are not complex tools to implement, and given the right tools, your organization becomes an efficient entity that takes advantage of pricing contracts that ultimately save thousands of dollars from maverick spending.
In summary, procurement and sourcing work together to streamline your contract to PO process. Implementing a tool that does both makes it even easier... .
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