PROCUREMENT PROCESS IN SAP MM

Procurement is a term commonly used both in the general management as well as in the use of SAP in material management. Procurement as a function is critical in any organization, company or a business entity for efficient function and smooth running of its activities. In SAP, this whole long process is cut short and made easier by shortening the long procedures required in placement as well as acquisition of materials required by the organization or the company in need. This can be done in a matter of minutes by a single individual via channels of established communication plans seeking views, approvals or inputs of all the other concerned parties. Procurement process is made easier and shorter unlike with the many requirements and procedures that are usually adhered to in an established physical entity.

Procurement starts with first identification of the materials or items needed by the organization or company for use. This can be done by the specific unit heads, the workers, and users or through a given system of identification of what is urgently needed at the time of initiation of the procurement process. The items can be listed as a whole, in groups or listed in order of urgency of use by the organization. Some as well list in order of priority in terms of what will be required for provision of the service to the organization or company first before those that may take long without accruing the organization profits. In SAP application, there may be a list of possible suppliers or distributors of such products and the corresponding prices and other accompanying charges a company is likely to incur in order to obtain the goods or services being sought. However, some managerial consultants advise that before as well considering the prices only, it is good to contact the service provider and establish if they are in position to deliver the ordered goods or the services.

By use of SAP, the user can then generate a list of goods or items required and the corresponding prices for the approval before placement of the order. The order generated by the user is what contains all the goods as listed or stated by those in need. This can be approved by the specific unit heads, those ordering for the goods or by following a specific established chain of command as stipulated by the company, organization r institution management. The procurement process ends by the supply of the goods, verification and payment for these goods. Procurement process in SAP as used in material management is far much easier, better, convenient and time saving for the users as well as the managers. Those who have used this software before attest to the efficiency and ease of work when in use. It is main advantage is combination of duties and roles that would need many works into consolidated units thus taking the shortest time possible to initiate and dispatch the order for procurement and the consequent supply of the goods or services.