Procurement Process Overview

8/2/2019 Procurement Process Overview

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INFORMATION SYSTEMS @ X

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The ProcurementProcess


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Outline

SSB Intro

A Basic Procurement Process (manual process)

Role of Enterprise Systems in the Procurement

Process

eProcurement


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A Basic Procurement Process

Definition

Requisition to pay

All the steps needed to acquire/procure material and paythe vendor

Key Concepts and Assumptions B2C vs. B2B commerce

Importance of standardized processes in B2B

Conceptual Framework

Physical Flow Document and Data Flow

Information Flow


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Physical / Document Flow

Trigger: Need a product from office supplies, raw material trading goods

Stakeholders: Warehouse (in this case), purchasing, accounting

Who is involved in each step?

Communication and coordination: physical documents

Physical

Document


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Purchase

Requisition

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Purchase Order


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Packing List


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A Goods Receipt

Document


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A Vender Invoice

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Information Flow

Instance-Level Information Status of a purchase requisition / order

Has a requisition been acted on? Has a PO been created andsent

Have goods been received for the requisition / order? When?

Where are the goods? If received, has an invoice been received? Paid?

If not received, when can we expect the goods?

Process-Level Information How well is the process doing?

How much time does it take on average? Per material? Pervendor?

Which vendors are prompt? Who habitually delivers late?

What do we buy most often? From with vendor(s)?



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Role of enterprise systems in the procurement

process

Execute the Process

Create Purchase Requisition

Create Purchase Order

Receive Shipment Receive Invoice

Send Payment

Capture and Store Process Data

Monitor the Process

Instance-Level Information Flow

Process-Level Information Flow



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Enterprise systems in Procurement

1. Create PurchaseRequisition

2. Create Purchase Order3. Receive Shipment4. Receive Invoice5. Send Payment



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Purchase Requisition in SAP



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Purchase Order in SAP



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Goods Receipt in SAP

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Invoice Receipt in SAP



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Vender Payment in SAP Initial Screen



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Vender Payment in SAP Processing



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Process monitoring (Information flow)

Instance level status information

Status of a purchase requisition / order (PO history)

Process level aggregate information

How is the process doing?



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Process-Level Information



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eProcurement

http://www.youtube.com/watch?v=j_e1bKpnfI

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What is eVA / eProcurement?

What do you think bidding means?

What are the benefits to (small) suppliers?

What are benefits to the State of Virginia?
http://www.youtube.com/watch?v=j_e1bKpnfIwhttp://www.youtube.com/watch?v=j_e1bKpnfIwhttp://www.youtube.com/watch?v=j_e1bKpnfIwhttp://www.youtube.com/watch?v=j_e1bKpnfIw

Procurement Process Overview

Documents

Transcript of Procurement Process Overview