Answer to Question #313894 in Management for Modi

Question

DMart appoints you as a purchasing manager for its FMCG. How can your contribution to the purchasing department enhance overall organizational performance through following e procurement strategies? 

Answer 1

As a purchasing manager, I will implement the electronic procurement systems. Use of e-procurement saves time, improves efficiency, accuracy, productivity and flexibility. E-procurement simplifies the way things are done and encourages transparency in integration of supplier relationship in the whole procurement process and hence improves the organizational performance. Effective management of procurement will enable an organization to lower costs by procuring supplies, services, and contracts at the best price. Proper procurement management also enables a company to make the most of warranties or discounts that are often forgotten. An e-Procurement platform boosts efficiency and productivity. It reduces the amount of time needed to complete procurement processes, approvals, and payments. By automating tasks that had been done manually, the staff is freed from low-value tasks such as paper processing and data entry.