An online procurement software is a comprehensive online purchasing software, which can automate and streamline supplier requisitions, qualification, sourcing, approvals, and purchase orders. It has been designed with an integrated electronic signature for faster approvals. It is also to be noted that supplier management makes the solution robust and simple to use.
You need to evaluate the online procurement software well before you start using. Here is a guide to understanding the system in the right way. Let us focus on how the software works. This procurement software will allow buyers to pick items from the supply catalog and wish list. Then they have to add them to the shopping cart and check out as then it will create a requisition. After that the remaining necessary details are added and the requisition is sent for approval.
The approver views the requisition details and approves or rejects the same depending on the company's internal policies and their approval limits. There will be rejected requisition which can be modified and re-sent for approval. After the requisition is approved by all the approvers it can be sent for PO creation. If no approval process is required, then the requisition will be directly sent for PO creation. According to the process followed by the organization, an RFQ or an Auction is the next step for approved requisitions.
The details of the existing suppliers will be added to requisitions before sending for RFQ, RFQs created are then sent to suppliers. The suppliers would add the price details and send quotations to the buyers for the received RFQ.
Finally the suppliers review the details of POs received and generate sales order to be sent to the buyers. This is how the entire system works.
