USE OF ERP SOFTWARE

IN PURCHASING
TEAM-1

ALEN VARGHESE
RAGEEM R
KRISHNAPRIYA RAJEEVAN

01
 The purchasing process is confined to “obtaining goods and
services”.

Similar to a transaction- you collect goods or services, and you pay

PURCHASING for them.

PROCESS focuses on avoiding waste due to fraud, theft, and financial troubles
that may arise due to a non-optimized buying process.
Finding and developing suppliers, and acquiring( in order to buy
)high-quality goods and services from them, at the lowest price
possible.

02
 ERP
ENTERPRISE

RESOURCE

PLANNING

03
 ENTERPRISE

An enterprise is a group of people

with a common goal, which has
certain resources at its disposal to
achieve this goal. In traditional
approach , the organization is
divided into different units based
on the functions they perform.

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 RESOURCE

Resources are essential elements

of a business, including land,
capital, material, machines, time,
energy, manpower, management,
knowledge, expertise, and
information.

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 PLANNING
Resource planning is a strategic
approach to ensuring resources are
used in the most effective way,
across a single project or a
portfolio of work. When executed
properly, organizations achieve
maximum efficiency and
optimization in their use of
resources, without under- or over-
utilizing any one resource.

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 ENTERPRISE
RESOURCE PLANNING

Enterprise resource planning (ERP) Is business

process management software that allows an
organization to use a system of integrated
applications to collect, store, manage and interpret
data from many business activities.

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 BENEFITS OF USING ERP
IN PURCHASING
BETTER MANAGEMENT OF PURCHASE ORDERS
ERP makes purchasing easier by automating the following tasks: Filing orders, purchase history, checking
inventory.
Accurate real time data with an organized purchase ordering system can be developed.

OPTIMIZED SUPPLIER RELATIONSHIP MANAGEMENT

collecting and organizing all the supplier information, thereby creating a robust supplier database and
streamlining communication with them.
A purchasing portal that is fully intergrated with current jobs and existing inventory can make simulantenous
pricing enquiries for multiple items to multiple suppliers.

TIME SAVINGS AND IMPROVED PRODUCTIVITY

Improving and automating processes saves time, increases productivity and improves relationships.
eg: automating inventory management with an ERP helps keep stock at the right levels, and alerts purchasing
department when the stock reaches a certain level, notifying that stock needs to be reordered, manually or
automatically.
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HOW DO ERP SYSTEMS
WORK?

11
 MAJOR REASONS FOR
ADOPTING ERP
•Integrate financial information.
•Integrate customer order information.
•Standardize and speed up operations processes.
•Reduce inventory.
•Standardize Human Resources information.

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 DISADVANTAGES OF
ERP
It takes time to implement.
Large amounts of workers have to shun their regular labor and undertake training.
This not only disturbs the organization's regular functioning but also runs the huge
risk of losing potential business in that particular period.
Expensive due to outside consulting, data analysis and conversion, and training.
It leads to performance problems which are when people can’t familiarly do their jobs
and haven’t yet mastered the new way. This causes panic and business goes into loss.

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THANKYOU