Structure the procurement process by using a single supply chain platform for communication with all suppliers. After placing a purchase order, the supplier indicates its ability to fulfil the order. All subsequent communication activities regarding delivery date, delivery quantities and quality take place via the platform. The result: a single screen offering an overview of all outstanding purchase orders, including the agreements made.

All data digitally captured

Suppose the buyer places an order for 100 red products, while the supplier only has 60 in stock. The platform allows both parties to quickly and unambiguously agree on a solution, for instance a delivery of 60 red products now with the promise of a repeat delivery with the remaining 40 in a month's time. 

Because all communication takes place via the same platform, all data is stored digitally and in a structured manner. This means that the data is easily searchable and can be presented in the form of dashboards and reports. Searching for order confirmations, delivery appointments and status updates in various systems, spreadsheets and mailboxes is therefore no longer necessary.

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Management by exception

From a shortage of raw materials to a breakdown in a production line, there can be all kinds of reasons why a supplier cannot fulfil its obligations. The platform shows the status of all purchase orders at a single glance. Changes and deviations are tracked in a well-organised way, which enables management by exception.

Is a supplier unable to deliver on time? Isn’t he able to have the agreed quantities ready for transport at the agreed time? The platform monitors progress and sends alerts in case of delays or deviations. This allows prompt and appropriate intervention, for example by adjusting the transport or involving another supplier.

One version of the truth

The platform provides access to the same data, not only to buyers and planners, but also to all other chain partners involved. As a result, everyone has the same information on the status, progress and any deviations of the purchase orders. Tedious discussions with suppliers are thus a thing of the past.

The benefits

  • One single overview of all purchase orders
  • Up-to-date view of the status of each order
  • No more discussions with chain partners
  • Alerts in case of delays or anomalies
  • Management by exception

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Ruben Pals ICT Logistics