Promitea blog

Part 3 - Procurement

Procurement (Procure to Pay / P2P) refers to a purchasing process based on catalog data. Requesters from different departments prepare a request which is transferred to purchasing department, where an order is generated and processed.

Part 2 - Sourcing

Sourcing includes requests, tenders, and auctions. It is typically used to purchase so-called leverage products for direct spend. For these products, there is a market with several competing alternative suppliers that are interchangeable from the purchasing point of view.

Digitization of procurement processes strengthens the company's competitiveness (introductory part)

Procurement controls at least 50% of a company's total costs, and in the automotive industry up to 80%. At the same time, the purchasing department suits ideally for the digitalization of its processes. The question therefore arises: What is the best way to begin the digital transformation of procurement?