An old trading rule says: "Profit is made in buying, not in selling." However, every unplanned 'cheap' purchase can turn into an expensive mistake that sits in your warehouse for months, locking up your cash flow.
In many businesses, the purchasing process is managed in a panic atmosphere that starts with the warning "The warehouse is out of goods" or with the stock-hoarding reflex that begins with the rumor that "The supplier will give a price increase." However, purchasing raw materials and semi-finished products; It is a strategic process that affects all wheels of the business, from production planning to financial cash flow. Purchasing processes managed with Excel spreadsheets or phone traffic lead businesses into the "Invisible Inventory Cost" trap.
3 Hidden Dangers in Purchasing Processes
Scenarios frequently encountered in companies that do not use an ERP-supported approval mechanism and demand management system are as follows:
Duplicate and Unnecessary Purchases
Different departments request the same product without being aware of each other, or the existing product in the warehouse cannot be found and is reordered. Result: Accumulation of stock of the same product to last for years.
Supplier Dependency and Performance Blindness
Buying habitually from the same supplier over and over again. Not evaluating alternatives because the supplier's delay rates, frequency of sending faulty products or price increase performance are not measured.
Unapproved budget overruns
Orders placed without the manager's approval or without checking the budget limits will put the finance department in payment difficulties at the end of the month.
Solution: Data-Driven Smart Purchasing
Korgün ERP Purchasing Module ends the “order whenever you feel like it” era. The system tells you when, from whom and how much to purchase by looking at the production plan and current inventory levels.
Request and Approval Hierarchy
The staff creates a "Request", the department manager approves it, and the purchasing department turns it into an "Order". Purchases over a certain amount are automatically subject to mobile approval by the general manager.
Supplier Report Card (Scoring)
Your ERP system scores your suppliers based on "Deadline Meeting", "Price Stability" and "Quality/Return Rate" criteria. When ordering, the system recommends you the most reliable, not the cheapest.
Offer Comparison Robot
Bring offers from different suppliers side by side on a single screen. Let the system calculate payment terms, exchange rates and shipping costs, and mark the most profitable option in green.
Requirements Planning (MRP) Integration
The system looks at the bills of materials and automatically gives the warning: "5000 units will be produced next month, we have 2000 raw materials, orders must be placed for 3000 units."
Order and delivery phase of the purchasing decision in the order tracking program You can review; Also verify proposal evaluation and approval needs within the scope of the demo.
Control Costs
Correct purchasing management is the fastest method that directly increases the profitability of your business. The way to increase your profit margin without increasing your sales price is to optimize the input raw material cost and stock load.
It's Time for Transparency in Your Purchasing Processes
With Korgün ERP, see instantly who bought what, for how much and why. Stop unnecessary spending.