Procurement management process

Procurement management in IBM® TRIRIGA® provides a set of business objects that optimize the interaction with the vendor and the performance throughout the entire procurement lifecycle. It offers a centralized and complete electronic process for procurement that enables full participation with vendors.

You can use the procurement management function to create, log, and track contracts, purchase orders, and other commitments. You can log and track applications for payment, change orders, shipping notifications, invoices, and receipts against those commitments.

A typical procurement process in IBM TRIRIGA consists of the following stages:

1. A requirement is identified and a request is submitted to the purchasing department. The assigned purchasing officer or other authorized business representative selects the best procurement method.
2. The inventory manager organizes and categorizes the required products and services that the organization wants to procure.
3. If blanket purchase orders or service agreements exist with the vendor or service provider, and products or services were negotiated, then the purchasing agent can issue a purchase order against the existing contract. If no contracts exist for the requested material or service, then a request for quote is sent to the manufacturers or vendors. Otherwise, the purchasing department or the requester can initiate a bidding process.
4. The vendors or manufacturers respond to the bid or request for quote.
5. The purchasing officer analyzes the vendor response and awards the contract or purchase order. Contracts and purchase orders can be generated from the original bid, eliminating redundant data entry and ensuring accuracy.
6. The purchasing officer purchases the products or services. The purchase can be accomplished by associating the product records with a purchase order. Because the products and services might not be included in a standard contract, a purchase requisition might be required to gain approval to create the purchase order and obtain the materials.
7. The purchasing officer pays the vendor for the products or services by using invoices and payment releases.