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Materials Management's Five Critical Processes

Authored by Usama Shahid

One of the decisions that companies have to make up front is whether purchasing is considered part of their materials management team function or if it is handled separately by a procurement team. However the supply chain management is organized, it is critical that there is outstanding communication flow between purchasing and the team handling inbound and internal logistics.

Choosing the right strategy and tactics for this portion of supply chain management depends largely on your resources and your industry. In a classic manufacturing environment, with fairly predictable needs established, ERP or Enterprise Resource Planning (ERP) and the ERP software that supports it continues to play a role.

eProcurement Enhances Organizational Performance

Web-enabled applications for business-to-business (B2B) procurement are not only expected to reduce the cost of purchasing process but also to alter the activities of purchasing, transform the purchasing process from an operational into a strategic activity and provide opportunities for improving market coordination by reducing asset specificity and by making additional partners available. The results driven through implementing Web-based e-procurement system not only enhance the performance of the buyer organization but also enhance the performance of the supplier organization and improve partner relationship management.