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A set of modern instruments used at different stages of the procurement process and interactions with suppliers.
Deployment of Procurement Management Software by Fogsoft allows a company to reduce procurement costs by 12 percent on average and staff labor expenditures – by two to three times, while significantly increasing the rate of capital turnover.
The system architecture is built on a modular principle, the customer has the opportunity to choose the necessary solutions based on the specific business processes of the company.
To understand the cost of procurement automation solution, read the description of each module and select ones you want.
Deployment of eProcurement software allows for the significant decline of staff labor expenditures.
Through automation of the document flow and basic purchasing procedures, management of the procurement process in the enterprise is simplified. Yet, it also avoids the risk of the “human factor” and data loss.
Our experience with the eProcurement systems deployment exhibits that qualitative execution and control of the same volume of procurement procedures when using the acquisition management system needs only two to three times less the amount of work.
The electronic means of conducting commercial procurement using reverse auction allows you to create the most efficient and transparent competitive environment, to attract the maximum number of suppliers. This then allows you to obtain the best offer based on your price and delivery conditions.
Bidders can bid from any location on the globe. When bidding for a price reduction, the cost of the delivered goods or services usually falls between 5 and 40 percent!
A key element in the company’s development is a process of constant searches for new suppliers with the best characteristics of goods or services and optimal financial conditions. Supply chain management software is an effective solution for attracting new suppliers, thereby expanding the geography of collaborative work.
Competition through the auction enables optimal delivery terms from current suppliers, due to increased competition.
e-Procurement Architecture by Fogsoft is built on a modular principle. The customer has the opportunity to choose the necessary solutions based on the specific business processes and needs of the company.
The planning stage of the sourcing process helps a customer to efficiently manage procurement activities in accordance with the current and future needs of the company. Furthermore, it allows suppliers to prepare for the implementation of potential orders in advance.
The Procurement Planning Module is responsible for the registration, coordination, review, consolidation of orders, analysis and forecasting of requirements, the formation of a schedule of procurement and communication of the customer with the supplier. In operational mode, it allows the retrieval of important data such as changes in the conditions of supply, new production and more.
The selection of optimal suppliers is of course not limited to tenders. The supplier performance and relationship management (SPRM) module enables the certification/accreditation of suppliers of specified categories within a certain timeframe for the purpose of selection of the most choice sources of supply, to determine any redundancies with the number of suppliers for similar positions and, of course, for the reduction of suppliers’ cost of participation in the bidding procedures.
Usually, customers offer certified suppliers special conditions for cooperation.To illustrate, they can invite a certified provider to a closed bidding procedure, to make a direct purchase without competitive bidding or requests for business information, or to endorse their participation in bidding without collateral and so on. While the options can be numerous, everything depends on the customer company and their sourcing policy.
SPRM module provides a means and approaches of continuous measurement and control of the certified suppliers performance and quality. SPRM module features include:
One of the main elements of the e-Procurement Management System is the electronic trading platform , enabling the customer company to perform online purchases in electronic form in all types of auctions (reverse auction, multi-unit auction, English auction, Dutch auction, blind auction, etc…). Here, the customers conduct the procurement procedure according to their own rules, setting it up based on how they want to configure the procedures for the admission of suppliers for trading, stages of formation of lots for the auction period, the formation of a protocol of the conducted tenders, the procedure for granting collateral and so on.
The electronic trading platform can send notifications about important events to all bidders, automatically selecting the optimum supplier, processing the collateral, exporting required information to third-party systems and much more.
It is also convenient since the system automatically collects statistics of savings (the overall reduction of initial prices). Moreover, due to competition during the carrying out of purchases a company’s needs–via the electronic trading platform –the price reduction is in the range of between five and 40 percent off of the initial price of the purchased lot.
How do you ensure that the vendor has exactly what the potential customer wants? Explore the catalog of purchased products. Every company customer has them in one form or another.
The Procurement tool facilitates a mutual understanding of customers and suppliers at every step. It does this through the E-catalog Module, which allows providers to quickly analyze the needs of potential customers and match them based on their abilities.This solution is a single database of purchased items, which includes all the information about the specifications of a particular purchased product or service that was aggregated within the procurement management system .
The catalog can be integrated through the module “planning of purchases” and online stores, so the officers will have the ability to register requirements for materials and services using the so-called “purchase basket”.
The stage associated with controlling the execution and recording of contracts in the procurement process is also automated within the procurement management software. A special role is then assigned to the curators of the contracts — often key performance indicators of the company depend on how quickly and accurately they perform their obligations of monitoring contract execution.
Cash-Commodity relations between a customer company and their suppliers is an integral element of the procurement process. The Financial system module is designed to optimize the interaction of a customer and his vendors within the processes associated with the funding and returns of bid participation collateral and contract execution collateral.
The system is built on the General principles of accounting systems: it enables multi-currency accounting, monetary and quantitative accounting , and integrates with other accounting systems.
An evaluation of the effectiveness of the relationship is performed through the “Analytics” module. This tool aggregates information from other system modules, covering all the required stages of procurement and ensuring up-to-date information in corporate reports within a few minutes.
There is also the possibility of expanding the reporting options in accordance with any new requirements such as report displays in graphic form, the formation of a printed report form and data export.