Articles

Traditional procurement methods vs IT procurement process Procurement methods involve the process of finding, agreeing to terms & acquiring goods or services. Though this sounds pretty simple and straightforward but only the experienced know how difficult it can get with a multi-layered process that involves tedious steps. A traditional procurement methods starts with the identification of needs followed by an extensive process of exploration of supplier options to finally arrive at finalization of the supplier by fixing the price and all other terms including payment options, delivery...

Importance of Material Management: Material management is directly associated with the operational efficiency of an organization. A good material management system ensures the availability right materials in the production process with minimum wastage so as to cut losses. Here are the few ways which show the importance of material management and how it influences your project performance: - Time Time is widely recognized as a primary criterion for performance measurement. Poor material management can have a negative effect on project time, like the insufficient stock of materials, lead ...

Why improve Material Management Any avoidable amount spent on materials or any loss due to wastage of materials increases the cost of production. The objective of materials management is to increase the efficiency in materials cost on all fronts and to optimize the overall result. Materials management refers to controlling the kind, amount, location and turning off various commodities used in and produced by the industrial enterprises. It is the control of materials in such a manner that it ensures maximum return on working capital. Most common ways to improve Material Management involve: - ...

Basic Functions of MM system MM system is basically divided 9 major sectors that include: 1.) Basic setup 2.) Stock Management 3.) Material Requirement 4.) Budget management 5.) Pre-procurement activity 6.) Procurement activity 7.) Material stock 8.) Physical Inventory 9.) Reports   The functions of MM system includes: Basic Setup This includes basic setup of MM system i.e. setup related to: 1.) Item - Item codification i.e. assigning specific codes to items, Item attributes – A general description of various attributes of the item and UOM management...

How to estimate ERP implementation cost Implementing an ERP is a major project for the industry and it is necessary to do proper research before going for an ERP. Before deciding to go for an ERP one should figure out how much its gonna cost to your organization. Cost of ERP implementation is not constant. It is different for different organizations; even similar type of organization can have different ERP implementation cost. It depends on what the organization needs, type of the organization, size and even location of the organization. The factors that should be taken into consideration whi...

Taking decisions based on intuition is a thing of the past; companies now make decisions based on data. Making data-based decisions are backed by many institutes and senior executives, for instance, Mckinsey Global Institute indicates that data-driven organization is 23 times more likely to acquire customers, six times as likely to retain those customers, and 19 times as likely to be profitable as a result. Organizations tend to think that they do not have enough data but the truth is most organization have more than enough data to make well-informed decisions, the problem comes organizing ...