What is meant by Procurement controlling?
Procurement controlling refers to the monitoring and management of procurement processes within a company. It involves the analysis and optimization of purchasing activities, ensuring cost efficiency, and controlling supplier performance and quality. The goal of procurement controlling is to strategically manage purchasing and thus contribute to the company's value creation.
Typical Functions of Software in the Area of Procurement Controlling:
- Data Analysis and Reporting: Automated evaluation and reporting of purchasing data, costs, and supplier performance.
- Cost Monitoring: Monitoring and analysis of procurement costs, identifying savings potential, and cost control.
- Supplier Evaluation: Assessment of supplier performance based on criteria such as quality, delivery time, price, and reliability.
- Budget Control: Monitoring and adherence to the purchasing budget, setting and tracking budget targets.
- Risk Management: Identification and assessment of risks in the procurement process and development of measures to minimize risks.
- Metrics and KPIs: Definition and monitoring of key performance indicators (KPIs) to evaluate the efficiency and effectiveness of procurement processes.
- Workflow Management: Support in controlling and optimizing procurement processes through automated workflows.
- Supplier Database: Management and maintenance of supplier data, contracts, and performance evaluations.
- Benchmarking: Comparison of suppliers and purchasing conditions to determine the best purchasing strategies and practices.
- Order History and Tracking: Recording and analysis of order history to optimize future order processes and strategies.
