Last modified: 2009-07-14
Abstract
Abstract: In efficient execution of procurement processes, goods and services are obtained under the best possible conditions (usually referring to prices and quality), while aiming to ensure delivery at the right time in the right place in order to obtain direct benefits and to support the corporate business process. While the procurement may be simple and consist of repeated purchases, complex procurement procedures include mid and long term contracting to obtain strategic goods and services and can have significant financial impact and economic blueprint on corporate business plan execution. The environment in which the procurement is executed is under influence of constant changes due to economic and political factors, especially when considering global scale, therefore the efficient procurement is under constant scrutiny in order to adequately support core business processes while avoiding interruptions, untimely deliveries and bottlenecks in the logistics system, often contained outside of the corporate system. Considering intricacies of such system, this paper sets a blueprint for organization of the procurement system that is able to incorporate transaction systems in order to utilize mid and top management decision support systems to further improve the efficiency of this business function. Such a system calls for exact alignment of business processes and transaction systems, creation of coherent reporting, and finally the extrapolation and simulation systems able not only to provide a detailed look at the past but also able to look ahead, into the future of the business, which is dependent on the constant change of inputs.