Lack of time is often sighted as the number one reason that purchasing departments are unable to tap the full potential of requirements planning and contracting best practices. Eliminating paper work through automation is the key to freeing up time. With the explosion of e-commerce, the options for automation are plentiful.

The ideal is to operate from "req. to check" without paper. Requisitions are created on-line often directly from the bill of materials. Approvals are minimized and complete via computer if needed. The requisitions from electronically to purchasing or often directly to the supplier if contracts exist. Suppliers provide electronic advanced shipping notices and when items are received they are entered into the system. Invoices move from the supplier’s computer to the buyer’s where the accounts payable match process is competed and funds are electronically passed to the supplier according to the payment terms.

Even if you cannot get to the ideal, small steps can lead to large time savings.

Best Practice | Case Study | Commentary

April 5, 2000
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