Procurement in Promitea focuses on C-items and indirect spend with the goal of minimizing process costs and time as well as reducing item prices.
The company-wide binding use of negotiated item catalogs results in cutting item prices upwards of 10%.
Further cost reductions are possible in logistics and maintenance costs if they are incurred for items such as PCs, printers, etc. (TCO).
In percentage terms, much higher savings are achieved in the process cost. They are in the order of 50-80%. Another effect is that the procurement department is now free to focus on more strategic tasks.
Promitea Procurement in Overview
The starting point of Procurement are the catalogs of the most diverse product categories. Promitea uses:
- Existing catalogs that are maintained in the customer's ERP system
- Supplier catalogs that Promitea uploads from suppliers in various formats
- Catalogs of suppliers or marketplaces, using OCI and Punch Out
- Catalogs maintained in Promitea
In Promitea, customers have the option of selecting the most suitable catalogs among competing suppliers of a certain category, e.g. using sourcing methods. The purchase prices, as well as updates and other conditions, are controlled by the contracts with the suppliers.
Promitea Procurement shifts the procurement process directly to the requesters. They are given access to the approved catalogs and select the individual articles or a shopping basket as they are accustomed to from their privately used eShop systems.
By restricting the buying from only the approved catalogs, they automatically follow the compliance rules of the company.
The Promitea Procurement workflow routes the individual items or shopping baskets to the responsible approver(s) who then release the execution of the purchase order. Promitea provides a complex system of rules to ensure that purchasing is carried out within company guidelines and budget limits.
Depending on the price and item category, the approvers are authorized to name their representatives in case of need.
Promitea supports the definition of budgets per organizational unit of the customer and the category of purchased items. The availability of the budget is updated with each approved purchase and displayed to the approver. This prevents maverick buying and ensures compliance with budget limits.
- the ERP system, if it takes over the remaining fulfilment including the invoice regulation
- Promitea's own fulfilment based on EDI processing system.
The EDI system is available in two alternatives:
- EDI Classic, according to international data standards such as Edifact or cXML for suppliers who have implemented them.
- WebEDI for smaller suppliers without an EDI system, WebEDI takes over the complete process from ordering to payment of the invoice. All the supplier needs is a browser.