Blog

Why is it so important to use the catalog for procurement?

Why is it so important to use the catalog for procurement?

“Where should I direct the resources of the purchasing department in order to achieve the maximum result in the shortest possible time? - This question is constantly asked by the managers of companies. Today I will talk about why the catalog of goods/services is so important and is one of the priority tools in automating the procurement process. "- said Andriy Zhivolovich, director of Precoro in the CIS countries.

Catalogs are mainly used to purchase often-needed non-basic goods and services, but can substantially facilitate direct purchases also.

The catalog significantly reduces:

- the time required for the procurement department to process each purchase request;

- the time for placing the order, because if there are filters, the initiator of the purchase requires a minimum of time in order to find the desired name.

The catalog significantly reduces:

- the time required for the procurement department to process each purchase request;

- the time for placing the order, because if there are filters, the initiator of the purchase requires a minimum of time in order to find the desired name.

Elements of the catalog are the name, description, vendor price, internal code, characteristic, picture, etc. The presence or absence of an item is due to the procurement category. As a rule, when working with basic purchases, the availability of pictures and descriptions of goods is not critical, as more attention is paid to the quality characteristics of the necessary product, such as production series, storage conditions, etc. Working with indirect purchases (for example, office supplies, food, etc.), conversely, the presence of pictures is very important, since it is difficult for initiators to determine the necessary goods by the nomenclature. Also such directories, as a rule, can consist of thousands of goods.

Important of course is how often the catalog is updated and how much the catalog nomenclature corresponds to the vendor's nomenclature. For indirect purchases, automatically updated databases are used - they are updated on an ongoing basis through integration with the vendor's database. This is a dynamic process that allows suppliers to quickly display changes in the assortment and prices, as well as add new elements. For basic purchases, as a rule, the catalog is managed by the procurement department, which updates the catalog when conducting a tender or updating the conditions with the current supplier.

Each good in the catalog can be assigned the appropriate cost-centers, which will significantly reduce the time for accounting to distribute all accounts from suppliers for the preparation of management reporting, and also positively affect the quality of analytics.

The availability of the catalog greatly simplifies the procurement process, because it allows you to find quickly the necessary product/service regardless of the category of purchases. Availability of the necessary elements of the catalog allows you to quickly find, select and order exactly what you need or make an order if you need.

Related posts