International Journal of Multidisciplinary Research and Development

International Journal of Multidisciplinary Research and Development


International Journal of Multidisciplinary Research and Development
International Journal of Multidisciplinary Research and Development
Vol. 2, Issue 11 (2015)

Purchase management system: A panacea for business improvement


Dr. Punam Ahlawat

In todayís knowledge-driven economy, businesses must adopt effective IT systems that can deliver the consolidated information required for decision-making, competitive advantage and growth. Purchase Management module is an advanced, web-enabled Supply Chain Management and Execution solution. The purchasing module of ERP supports all phases of material management, material planning and control, purchasing, goods receiving, inventory management and invoice verification. Purchase Management module streamlines procurement of required raw materials, packaging material, sub assembly and other non-inventory materials. It automates the processes of identifying potential suppliers, supplier quote evaluation, negotiating price, awarding purchase order to the supplier, and billing processes. It also evaluates vendors and purchasing, controls and administers requisitions, repetitive supplier schedules, performance; purchase orders, and receiving; facilitates the procurement process; and integrates fully with accounts payable. Purchasing is a very important component of material management module. This module is fully integrated with other module in ERP. Purchase module is tightly integrated with supply chain management software, the inventory control and production planning modules. It is designed to reduce supply chain costs, reduce inventory and increase operational efficiencies. Purchase module of ERP gives you total flexibility to control each commodity based on how it is utilized and consumed, including discrete purchase orders, standard forecast, shipping schedules or supplier managed inventory. It delivers significant return on investment by increasing supplier visibility, enabling inter-enterprise communication, and providing a high level of systems integration. This paper examines the implementation of ERPís Purchase Management module in organizations and how organizations may be affected by implementing these modules. ERP software is designed to include modules so that it is easy to access a particular option; it is easy to train staff, easy to provide security features. Such a module based design is more intuitive to use and staff find it easy to understand.
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How to cite this article:
Dr. Punam Ahlawat. Purchase management system: A panacea for business improvement. International Journal of Multidisciplinary Research and Development, Volume 2, Issue 11, 2015, Pages 683-685
International Journal of Multidisciplinary Research and Development International Journal of Multidisciplinary Research and Development