Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Procurement Performance Management- Six steps to streamline procurement

By James Thomas Subscribe to RSS | February 3rd 2012 | Views:
loading
 
  



Purchasing requires getting the best product at the best price, on time and in the right place. Procurement Performance Management is a process which involves managing the ordering, receipt, review and approval of items from suppliers. Using a Procurement performance Management Process, one can ensure that the goods received meet the organizations need. One of the critical aspects of procurement performance management is to specify how the supplier relationships will be managed, to ensure a high level of service. With an increasing trend of outsourcing, procuring goods and services from external suppliers can be a critical path for many projects. It's therefore crucial that you manage your supplier’s performance carefully, to ensure that they produce deliverables which meet your expectations. An efficient procurement performance management process provides an end-to-end visibility of the entire procurement process to analyze supplier performance and contract compliance.

The steps involved in procurement management process are as follows,

Plan purchases and acquisitions: Process of determining the items to purchase for your project and when you need them.

Plan contracting: Process of creating requirements for all the products and services your project team needs and it has to be performed by the project management team. At this stage, organizations need to start identifying potential companies that can supply the products and services.

Request seller responses: Identifying a list of vendors to consider and receive information on their capabilities and prices through vendor proposals and price quotes.

Select sellers: Selecting sellers is the process associated with actually choosing the vendor that will provide the product or service.

Contract administration: Involves managing the relationship with the contracted company.

Contract closure: This occurs if the contractual relationship existed only for the life of the project. For instance, if the contract was in place to provide raw materials for a particular project, then the contract will probably end after the project is over.

The entire gamut of processes involved in procurement and order fulfillment functions needs to be streamlined to ensure optimum results. A well-established procurement management process enables an organization to,

• Negotiate prices and get the best quality resources for production processes

• Deliver collaborative RFx and auctions, plus bid analysis.

• Support automated contract creation, management, and reporting.

• Identify supplier contract milestones

• Review supplier performance against contract

• Identify and resolve supplier performance issues

• Communicate the status to management

James Thomas - About Author:
Zycus Inc. is a global provider of Spend Management solutions (Spend Analysis, Strategic sourcing, Contract management, Supplier Performance Management, Supplier Information Management) that are world renowned for delivering an accelerated return on investment through superior user adoption to create Maximized Savings. (http://www.zycus.com/solution/procurement-performance.html) With more than 200 global proven implementations, Zycus’ solutions have emerged as the global favorite.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/software-articles/procurement-performance-management-six-steps-to-streamline-procurement.htm

Related Software Articles Subscribe to RSS

Effective occupational health management from EOA Systems
Published by James Blee on August 22nd 2012 | Software
EOA Systems are a company who pride themselves on their ability to provide an effective and professi...
 
Benefits of online Sales tracking and leads management software
Published by Elizabeth Cooper on March 19th 2012 | Software
The lead management software is part of the complete sales force automation process that helps in tr...
 
What is so special about waste management software
Published by Angel on December 20th 2011 | Software
Waste management software provides the ideal solution for waste management sectors. But here we have...
 
An overview- Liferay document management
Published by Top Articles on November 28th 2011 | Software
In this article, it has been highlighted about the flexible software that is liferay document manage...
 
Looking for Expansion? Choose Warehouse management Software
Published by James Blee on June 5th 2012 | Computer
If you run a warehouse then you know how important time is for warehouse. Sometime, improper informa...
 
What makes the waste management software a worthy addition
Published by Angel on July 17th 2012 | Software
Enthusiasts involved in waste management business make diligent use of waste management software to ...
 
What is the chargeback management system?
Published by Hemelwasen on November 28th 2011 | Computer
Each chargeback fraud, there are many different strategies being deployed in the system to give a sp...
 
Enterprise mobility management
Published by Roger Lopez on January 18th 2012 | Software
This article explains the concept of Enterprise mobility management. It also provides an overview of...
 
Monitoring the performance of website and application programs
Published by Philip Fransis on March 20th 2012 | Software
It is pretty good that you have finally come to a decision to go online. It will definitely earn you...
 
System management with sap support packs
Published by Tony Smith on March 9th 2012 | Software
Basic needs of your system include automated upgrades for software applications installed on the sys...
 
Improving flow through queue management
Published by Brandon Munson on December 30th 2011 | Software
The queue management system is used in controlling queues. The queues of people form in various situ...
 
Benefits of indexing management in business
Published by Caitlin Jones on December 29th 2011 | Software
Indexing document is the process of transfer labels and markings on the documents can be documents i...
 
Queuing systems and Queue management system
Published by Brandon Munson on April 12th 2012 | Software
The Latest electronic way of providing customer satisfaction is the Queuing systems. The customers n...
 
How Blackberry CRM solutions help improve business performance
Published by Angel on January 16th 2012 | Software
Establishments can improve business performance with Blackberry CRM solutions. With the well-designe...
 
How to measure wireless router performance
Published by Harish Sheel on February 28th 2012 | Software
Are you getting the full speed of the internet or are you getting all from your wireless router??? ...
 
Why is document management so important for business?
Published by Ronan Pointy on December 29th 2011 | Software
Document management in the office can be tedious and disheartening. According to studies, employees ...
 
Data deduplication for better performance
Published by Backup Safe on April 20th 2012 | Software
Deduplication is a way of reducing the size of large quantities of backup data far more effectively ...
 
Document management solutions – answer to rising prices
Published by Caitlin Jones on June 7th 2012 | Software
What is document imaging conversion? What are document management solutions? Finding an answer to ab...
 
Increase Directory site and Data source Overall performance along with LDAP Firewall
Published by Darrell Fore on May 23rd 2012 | Computer
LDAP firewall can offer you safety also as protection layer for the repositories of data. There are ...
 
Why use IBM Maximo for maintenance management
Published by Mary Porter on July 6th 2012 | Software
IBM Maximo is a powerful software solution that arms you with the tools to integrate all your mainte...