ABSTRACT
Companies expect their procurement and supply chain organizations to provide purchased materials and assemblies on time, all the time, to meet their customer demands. The automation of procurement execution as part of pull-based replenishment of direct materials is driving true process collaboration between manufacturers and suppliers. With the aid of technology companies can expect to streamline buyer productivity, eliminate non-value-added activities, reduce direct material inventory across the supply chain, and improve the supply network’s capability to meet customer demand. The three departments found such a supplier, the cost being higher, but with an expanded market, increased revenue, and higher margins, it paid off in the long term. Different industries encounter different procurement issues with the pressure to bring processes into the 21st century, along with new technological innovations. However, any procurement department or organization that wishes to enhance its financial value to its firm must evolve and mature.
