The Supply and Purchasing Process - Coggle Diagram
The Supply and Purchasing Process
Historical Significance of Procurement
Exchange of goods to meet needs.
Driver of progress and wealth.
Crucial Role of Procurement in Contemporary Organizations
Vital function in large organizations.
Procurement of necessary materials and services, on time and with suitable quality.
Functions of the Procurement Department
Fundamental support for planning.
Acquisition of materials and services at appropriate prices, quality, and timeliness.
Current Challenges in Markets
Challenges in procurement management.
Process of Allocating and Handling Procurement Sources in the SAP System
Choosing the most suitable source for the purchase request.
Can be an interactive process.
Verification of the existence of framework contracts.
Assignment of a single source if it is with a regular supplier.
Creation of Purchase Request
Commencement of the procurement process in SAP.
Identification of Available Sources
SAP identifies various procurement sources.
Includes framework contracts, purchasing information records, regular suppliers, among
SAP automatically determines a unique source in the background process.
Priority given to framework contracts.
Technological Advancements as Facilitators
Technology improves sourcing.
Enhanced communication in acquisition processes.