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A 3-way match is a verification process used in financial systems to ensure accuracy in invoice processing. It involves comparing three documents: the purchase order, the receiving report (goods receipt), and the vendor's invoice. The purchase order details the goods or services ordered, the receiving report confirms the receipt of those goods or services, and the vendor's invoice provides the billing information.
The quantities and amounts on the receiving report and the vendor's invoice are compared against the purchase order. If all three documents align and match, the invoice is considered valid for payment. The 3-way match helps prevent errors, fraud, and discrepancies in financial transactions.
Specialism:
eProcurement
Procurement Process
eAuctions, also known as electronic auctions, are online platforms or systems used in the procurement process to facilitate competitive bidding for goods or services. They provide a digital environment where suppliers can submit bids and compete with each other in real-time to win a contract or purchase order.
eAuctions offer various formats such as reverse auctions, where suppliers compete to offer the lowest price, or forward auctions, where buyers compete to secure the best terms from suppliers. These digital auctions promote transparency, efficiency, and cost savings by driving competition, encouraging price discovery, and enabling buyers to obtain the most favorable terms from suppliers.
Please see Reverse Auctions for more details on their application
eProcurement, short for electronic procurement, is the digitization and automation of the procurement process using technology and online platforms. It involves the electronic sourcing, ordering, and management of goods and services. eProcurement systems facilitate tasks such as online supplier registration, electronic bidding, purchase order generation, invoice processing, and vendor management.
These systems streamline procurement operations, reduce paperwork, enhance transparency, and improve efficiency. They enable organizations to automate routine tasks, increase procurement accuracy, track spending, enforce compliance, and analyze data for better decision-making. eProcurement enhances collaboration between buyers and suppliers, optimizes supply chain processes, and ultimately helps organizations achieve cost savings and operational excellence.
Specialism:
eProcurement
Procurement Operating Model
D
Digital procurement refers to the application of digital technologies and processes in the procurement function to streamline and optimize the end-to-end procurement process. It involves leveraging digital tools, automation, and data-driven approaches to enhance procurement operations. Digital procurement encompasses activities such as e-sourcing, e-auctions, online supplier management, contract lifecycle management, electronic purchase order generation, and electronic invoice processing.
By digitizing and automating these processes, organizations can improve efficiency, accuracy, transparency, and collaboration throughout the procurement lifecycle. Digital procurement enables real-time data analysis, better decision-making, cost savings, and enhanced supplier relationships, leading to improved overall procurement performance.
M
Master Data Management (MDM)
Master Data Management (MDM) in procurement involves the systematic management of critical data elements related to suppliers, products, contracts, and organizational structures. It focuses on collecting, organizing, and maintaining accurate and consistent master data to support procurement operations.
MDM ensures the integrity, standardization, and harmonization of data across systems and processes, enabling efficient supplier identification, evaluation, sourcing, and contract management. By implementing effective MDM practices, organizations can enhance data accuracy, streamline procurement processes, reduce risks, improve reporting capabilities, and make informed decisions to drive efficiency and value in procurement activities.
P
A preferred supplier is a supplier or group of suppliers that an organization has identified as its first choice for a particular product or service. This is typically based on the supplier's ability to meet the company's needs in terms of price, quality, delivery time, and other criteria.
A preferred supplier is usually selected after an evaluation process with the status typically granted for a specified period, often with the option to renew or extend the agreement.
Having a preferred supplier can offer several benefits for the company, such as cost savings through volume discounts or negotiated pricing, improved supply chain efficiency through better communication and collaboration, and reduced risk through a more stable and reliable supplier relationship. Equally, having preferred suppliers can streamline the procurement process through automation reducing administrative burden.
It is important for the organization to continuously monitor and evaluate the performance of its preferred suppliers to ensure that they continue to meet the organization's needs and expectations.
Specialism:
Category Management
eProcurement
Procurement Management
Procurement Process
Sourcing
Supplier Management
A purchase catalog, sometimes procurement catalog, is a centralized database or system that contains detailed information about the pre-agreed products and services available for purchase within an organization. It serves as a comprehensive listing of items that can be procured, including descriptions, specifications, pricing, availability, and any associated terms and conditions. The procurement catalog is used by buyers and other stakeholders to browse, search, and select the desired items for procurement purposes. It helps streamline the purchasing process, ensures purchase are made following the correct channels and policies, standardize procurement practices, and ensure accurate and up-to-date information for efficient procurement decision-making.
Specialism:
eProcurement
Procurement Operating Model
Procurement Process
ProcureTech is a broad term that encompasses the technology solutions and platforms specifically designed and utilized to support and enhance procurement processes. It encompasses a wide range of software applications, tools, and digital platforms tailored to streamline and optimize procurement operations. ProcureTech solutions can include e-procurement systems, vendor management systems, spend analysis tools, contract management software, electronic sourcing platforms, and other digital solutions aimed at automating and improving procurement activities.
These technologies enable organizations to increase efficiency, reduce manual tasks, improve data accuracy, enhance collaboration with suppliers, and gain better insights into procurement performance. Adopting ProcureTech solutions can drive cost savings, improve supplier relationships, and enable strategic decision-making in procurement.
A purchase catalog, sometimes procurement catalog, is a centralized database or system that contains detailed information about the pre-agreed products and services available for purchase within an organization. It serves as a comprehensive listing of items that can be procured, including descriptions, specifications, pricing, availability, and any associated terms and conditions. The procurement catalog is used by buyers and other stakeholders to browse, search, and select the desired items for procurement purposes. It helps streamline the purchasing process, ensures purchase are made following the correct channels and policies, standardize procurement practices, and ensure accurate and up-to-date information for efficient procurement decision-making.
Specialism:
eProcurement
Procurement Operating Model
Procurement Process
A purchase order (PO) is a commercial document issued by a buyer to a supplier, indicating the details of goods or services to be purchased. It is a formal offer to buy goods or services from a supplier and creates a legally binding contract between the buyer and the supplier once it is accepted.
A PO typically includes information such as the type and quantity of goods or services purchased, the agreed price, delivery dates, shipping and billing addresses, payment terms, and other relevant terms and conditions. It serves as a record of the agreement between the buyer and the supplier and helps to ensure that both parties understand their obligations.
The purchase order is often generated by the buyer's procurement department, based on a purchase requisition submitted by an internal department or employee. The purchase order is then sent to the supplier, who can use it as authorization to fulfill the order and ship the goods or provide the services. It is becoming more common for eProcurement systems automatically generate POs.
Specialism:
eProcurement
Procurement Process
Supplier Management
