{"id":10306,"date":"2019-03-07T07:33:38","date_gmt":"2019-03-07T05:33:38","guid":{"rendered":"http:\/\/s38547.p1394.sites.pressdns.com\/uncategorized\/erp-boosts-procurement-creating-a-channel-for-innovative-business\/"},"modified":"2019-03-07T07:33:38","modified_gmt":"2019-03-07T05:33:38","slug":"erp-boosts-procurement-creating-a-channel-for-innovative-business","status":"publish","type":"post","link":"https:\/\/us.syspro.com\/blog\/planning-for-erp-or-purchasing-erp\/erp-boosts-procurement-creating-a-channel-for-innovative-business\/","title":{"rendered":"ERP Boosts Procurement Creating a Channel for Innovative Business"},"content":{"rendered":"

ERP or rather MRP systems for many years (in SYSPRO\u2019s case, for 40 years!) have enabled Purchasing via requisitions through approval \u2013 then purchase orders with more approval \u2013 receiving via a GRN process \u2013 and finally payment of supplier invoices. This system still works fine and is best loved by administration and micro-managing Procurement Managers.<\/p>\n

<\/p>\n

Then there’s Sourcing \u2013 the process of selecting appropriate suppliers for different products, setting prices with them possibly using the 3-quote-comparison process to find the best (or cheapest), so material planners just have to worry about how many to order and what delivery date.<\/p>\n

JIT Procurement<\/strong><\/p>\n

SYSPRO realized procurement needed some new planning and control enablers. We added Material Requirements Planning<\/a><\/strong> to help work out what to buy when, in a planned and coordinated way, taking advantage of sensible order quantities, delivery lead-times, and batching rules.<\/p>\n

Next came just-in-time (JIT) with sourcing from single “strategic” suppliers per product. Price, delivery, and quality agreed so purchasing was a “safe” admin process, replenishment signaled by kanbans and consumption of multiple BOM hierarchies in one back-flush transaction.<\/p>\n

Preferred Supplier \u2013 A Move to Strategic Sourcing<\/strong><\/p>\n

So SYSPRO 8 brings cool innovations like Preferred Supplier<\/u><\/strong><\/a> to move towards strategic sourcing where managed\/shared spend between a limited number of suppliers is possible. Or use a range of order policies like “cheapest preferred suppliers that can deliver on-time” \u2013 because cheap doesn’t always mean on-time<\/p>\n

This functionality adds value for both customers using SYSPRO 8 and their suppliers \u2013 the customer gets preferential pricing\/delivery while suppliers get guaranteed volume business from their customer. A longer-term collaborative horizon leading to strategic relationships. A win-win.<\/p>\n

AI and ML Enhancing the UX<\/strong><\/p>\n

User experience is also enhanced combining Internet shopping and social media bringing “shopping cart” user-interface to make life easier or familiar for Internet shoppers. And SYSPRO 8 has built-in AI\/ML (artificial-intelligence armed with machine-learning)<\/strong><\/a> which adds “Contextual Recommendation Engine” functionality to your procurement \u2013 you know “customers who purchased this item also purchased ### and &&& at the same time \u2013 would you like this too?”<\/p>\n

So even in Procurement, SYSPRO ERP can provide infinite possibilities.<\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>ERP or rather MRP systems for many years (in SYSPRO\u2019s case, for 40 years!) have enabled Purchasing via requisitions through approval \u2013 then purchase orders with more approval \u2013 receiving via a GRN process \u2013 and finally payment of supplier invoices. This system still works fine and is best loved by administration and micro-managing Procurement … Read more<\/a><\/p>\n","protected":false},"author":296,"featured_media":10307,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[272],"tags":[],"class_list":["post-10306","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-planning-for-erp-or-purchasing-erp"],"acf":[],"yoast_head":"\nERP Boosts Procurement | How ERP help you Choose the Best Supplier<\/title>\n<meta name=\"description\" content=\"SYSPRO ERP Preferred Supplier strategic sourcing solution boosts the procurement process where managed\/shared spend between a limited number of suppliers is possible.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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