Typically, purchase or procurement planning is done offline, in Excel or similar tool. How is Purchase/Procurement Planning Done…and Why Does It Fall Short? It enables planners to assess the feasibility of combining or dividing procurement requirements into different contract packages.It allows for the right resources to develop technical specifications and assess scope of work for certain requirements, especially where these resources are not available in house.It enables planners to estimate the time required to complete the procurement process and award contract for each requirement-which also confirms the validity of the period expected.It facilitates the creation of a procurement strategy, including market surveys and which method to use depending on circumstances and requirement.It forces stakeholders to meet and discuss requirements and provide relevant input.It enables planners to determine if expectations are realistic and within the boundaries of the planning process.In addition to helping decide what to buy, when and from what sources, procurement planning is important for these reasons: During the process, the procurement method is assigned and the expectations for fulfillment of procurement requirements is determined. It’s a simple definition: the process of determining what to buy, when and from what source. What is Purchase or Procurement Planning and Why Is It Important?
In this blog post, we discuss ways you can simplify the process around purchasing and procurement using your Microsoft Dynamics NAV or Business Central ERP system. However, there is the planning side to purchasing, and that’s where it gets complicated. On the surface, purchasing and procurement seem fairly simple: you find the vendor with the best price, terms, and delivery schedule, place an order, and receive it.
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