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.
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.
SRM in Promitea optimizes the relationship between buyers and suppliers through digital communication. The goal of SRM is to initiate and develop close and sustainable cooperation between purchasing and its suppliers for the equal benefit of all participants along the entire value chain.
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?
