Both ERP (Enterprise Resource Planning) and procurement management system are part of the enterprise information system, and they play different roles in the enterprise. The following is the difference between them:
different
functions: ERP system is a comprehensive enterprise management system, covering a wide range, including finance, human resources, procurement, production, sales and other fields; while the procurement management system is mainly for procurement Process optimization, including supplier management, sourcing pricing, procurement execution, procurement budget, item management, report analysis, etc.
The goals are different: the main goal of the ERP system is to improve the management efficiency and information level of the enterprise, and optimize various business processes; while the main goal of the procurement management system is to reduce procurement costs, improve procurement efficiency and procurement quality.
Different coverage: The ERP system has a wide coverage and can support the information needs of multiple departments of the enterprise, including the procurement management system; the procurement management system only optimizes the procurement process and only involves the procurement department.
Although the ERP system can cover multiple departments and business processes of the enterprise, including procurement management, enterprises need more specialized and customized functions and process support in the procurement management process, which requires a procurement management system for specialized management and optimization.
The following are the reasons why enterprises choose a professional procurement system to manage the procurement process
more professionally: the procurement management system has more specialized and customized functions and process support, which can better meet the needs of the enterprise procurement process and help enterprises achieve rapid procurement Responsive, efficient and low cost.
More flexible: The procurement management system can be flexibly customized and configured according to the specific procurement process of the enterprise to meet the individual needs of the enterprise, while the ERP system requires more customization and development, and the cost is relatively high.
More convenient: The procurement management system can be integrated with external supplier platforms to automate the procurement process, which is convenient and fast, while the ERP system needs to be developed and integrated by itself, which is more difficult.
Easier to use: The user interface and operation process of the procurement management system are relatively simple and clear, which is easy for employees to use and operate, while the ERP system is more complicated and requires training and professional technical support.
Therefore, enterprises need to choose a procurement management system or ERP system to manage the procurement process according to their own needs and actual conditions. Usually, the procurement management system will be used as a module of the ERP system, and the two can be integrated to achieve a more complete and comprehensive enterprise information management.
8Manage SRM Supplier & Procurement Management System is designed to simplify and automate the procurement process, from identifying potential suppliers to managing contracts and invoices. Here are some steps to manage the procurement process with 8Manage SRM system:
Identify Potential Suppliers
Use the system to search and evaluate potential suppliers based on criteria such as product quality, price, delivery time and service level. You can also use the system to collect and manage supplier data such as contact details, certifications, compliance and more.
Send Request for Quotation
Use the system to send a request for quotation to selected suppliers, stating the requirements and terms of the purchase. The system can automatically notify suppliers of RFQs and track their responses.
Evaluate Proposals
Use the system to evaluate proposals received from suppliers, comparing their prices, delivery times and other factors. The system can generate reports and help you make informed decisions.
Contract Negotiation
Use the system to negotiate contracts with selected suppliers, specifying terms and conditions of purchase. The system helps you track and manage the contract negotiation process, including any amendments and amendments.
Manage Orders
Use the system to manage purchase orders, from order creation to approval and tracking order fulfillment. The system helps you monitor lead times, manage inventory levels, and track invoices and payments.
Monitor Supplier Performance
Use the system to monitor and evaluate supplier performance based on factors such as quality, lead time and customer service. The system can help you identify and resolve any issues or discrepancies.
Overall, 8Manage SRM system can help you simplify and automate the procurement process, reduce costs, increase efficiency, and strengthen supplier relationships.