| The IT strategy of an organization focuses on | | | | conformance to specifications and past |
| deploying IT systems and solutions to different | | | | performance. This is followed by the physical |
| functions to capture the cost advantages enabled | | | | delivery of goods, inspection and finally the |
| by those systems. Each function may have the | | | | financial settlement.Purchasing management |
| authority to decide the areas to be automated in | | | | software is a server based application that is |
| consultation with IT department. Alternatively, | | | | accessed by the users through log-in passwords. |
| organizations may deploy ERP based systems | | | | It contains modules which manage proposals, |
| that encompasses the whole organization.The role | | | | contracts and purchase orders. It also allows for |
| of purchasing is seen as the buyer of materials | | | | electronic approval of purchase orders and tracks |
| for the production, maintenance and utilities | | | | the order till the financial settlement. The |
| function of a manufacturing organization and as a | | | | software can be integrated with back end |
| buyer of accessories and office supplies for other | | | | systems to have visibility of inventory, production |
| types of organizations. Purchasing is mostly a | | | | scheduling and financial invoice clearance. The |
| clerical activity driven by paper based processes | | | | software can track the performance of suppliers |
| and much emphasis is placed on verbal | | | | using metrics such as on time delivery and goods |
| negotiations for bargaining of prices with suppliers. | | | | returned.A change from clerical to automation |
| The traditional view of purchasing is to squeeze | | | | involves end user identification with the system. |
| every cent from the seller.The major activities | | | | Users have to be trained during the |
| for purchasing are receipt of requirement proposal | | | | implementation of the software. Purchasing |
| that initiates the purchasing cycle from the end | | | | management results in considerable saving in |
| user. The purchasing department asks for | | | | inventories and supplier satisfaction as this |
| requests for proposals from the prospective | | | | eliminates paper based processes which have the |
| sellers. After negotiation process, through which | | | | inherent disadvantage of losses of data. |
| the vendor is selected based on criteria such as | | | | |