Bali Business
Image default

What is the purchasing process and how do you optimize it?

It has its advantages for every company to optimize the purchasing process. On the one hand to save time and on the other by saving money. Or both of course. There is always something to save in the purchasing process. It is therefore important that this is analyzed and then discussed the action points to improve the whole. But let’s start by explaining what exactly the procurement process involves and what it takes to optimize it.

What is the purchasing process?

The purchasing process is the process of purchasing for the products that are subsequently sold. When analyzing the purchasing process, the course of the process is looked at. Can it be set up more efficiently? Usually such a process is divided into 6 steps. These are the 6 steps:

  • Specify
  • Selecting
  • To contract
  • To order
  • To guard
  • Aftercare

Each phase can be taken separately to analyze it and then see what can be optimized. In this way, errors can be detected per phase and subsequently corrected. After all, the process must run as efficiently and smoothly as possible.

How can you optimize the purchasing process?

 Organizing the process as efficiently as possible is important for all departments. The more efficient, the better. A source to pay service can help with this, this keeps a 360 degree insight into all performance and expenses. On the basis of this data, it is possible to look at how this can be arranged more efficiently. Where to save time and money. This insight can also be limited to the analysis and the purchased goods. There is no question of a 360 degree insight. This is the case with procure to pay. The TCO will be reduced and that is of course a big advantage. TCO stands for Total Costs of Ownership, this refers to the total amount of costs for purchasing and owning a product or service.