What is meant by Procurement Management?
The term "procurement management" encompasses all processes and activities necessary for an organization to acquire goods and services. The goal of procurement management is to procure the required resources in the right quantity, quality, and at the right time under the best possible terms.
Typical software functions in the area of "procurement management":
- Demand Planning: Analysis and forecasting of the demand for goods or services based on internal requirements and external market conditions.
- Supplier Management: Management of supplier information, evaluations, and relationships to select the optimal suppliers.
- Order Processing: Creation and management of purchase orders, including approval processes, delivery tracking, and supplier communication.
- Contract Management: Management of contracts with suppliers, including contract negotiation, creation, and monitoring.
- Supplier Portal: Platform for communication and collaboration with suppliers to optimize the ordering process and supplier selection.
- Sourcing Optimization: Identification of sourcing opportunities for cost optimization and risk mitigation through alternative suppliers or procurement methods.