One of the most complex tasks for companies is the supply of materials, either for buying and selling or for the manufacture of new products to market. The real challenge is to make the entire process effective and profitable at the same time, which is made difficult if there is resistance to switching from manual tasks to supply chain management Canada software such as SAP Business One and the supply chain management module. purchases, which we will talk about below.
The supply of materials seems a simple task, however it is a complex process in which factors such as: quality / price ratio of suppliers, delivery times, payment facilities, promotions or other benefits provided by a supplier must be analyzed. By having supply chain management Canada software with a purchasing module, companies can reduce operating expenses and have savings of around 25%.
The purchasing department is immersed in constant price changes, which usually depend on the world, national and regional economy, so it must analyze which is the appropriate supplier for the supply of materials.
Many companies have established contracts with suppliers, from whom they buy certain products with a set frequency, while others (small and medium-sized ones) tend to constantly change suppliers looking for the best prices. However, at this point the purchasing department can waste a lot of time calling suppliers to request quotes, comparing between the different options to make a decision, passing a summary to the managers and waiting for a resolution.
By having supply chain management Canada software, the purchasing department can have a supplier database connected to its own ERP, so that each price change is reflected in real time. This will not only help reduce contact calls and requests for quotes, but also optimize the time employees spend in the process to make faster decisions.
So how do you take advantage of procurement and supply management software?
Understand business needs
The needs of a manufacturing company are different from those of a distributor, so the purchasing department must have defined goals and the strategies that will be implemented to achieve them.
Determine a spending cycle
Just as it is important to define goals, you also have to know the cycle of expenses, especially those materials that are constantly acquired as raw materials. The systems allow scheduling alerts for materials that are about to be finished, as well as automating notifications of products that are about to expire, placing orders from the ERP, creating predetermined contracts (and only changing fields corresponding to amounts, dates, etc.), scheduling alerts of expiration or automatic renewal of contracts or orders.
Therefore, by implementing a management system such as SAP Business One, companies can reduce operating expenses up to 70%, better manage their finances and determine an approximate expense each month for provisioning.
Did you know that by reducing purchasing expenses by 5%, your business can obtain a similar benefit to increasing sales by 33%? For this, it is very important to analyze data from previous months, suppliers, the market in general and, above all, the expenses that the supply chain entails: from purchases to distribution.
Billing / accounts payable
The system can be integrated with the billing and accounts payable accounting modules so that the supplier is sure that the orders have been settled, or the corresponding fees in case of buying on credit; An interconnected system between the ERPs will allow the supplier to view the status of their invoice: payment date, bank, etc. And if an accounts payable module is not integrated, the information can be added to the invoice module.
As you can see, purchasing or supply management is a complex task, which requires specialized software to carry it out successfully, and at Emerson Rush we are specialized SAP Canada consultants and we want to help you with a comfortable implementation, easy to understand and use by your collaborators. and that allows you to obtain these and other benefits, so that you obtain a quick return on investment.