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Why Spend Management and ERP don’t go hand in hand

Spend management is administering how to use your money effectively to get products and services. It involves procurement, e-procurement, outsourcing and supply management. ERP is Enterprise resource planning it is software that manages business process management through technology. This software is responsible for services such as human resources, technology, and services. Therefore spend management relies mostly on human logic while ERP relies heavily on automated computer technology. Spend management is often termed as spend analysis. Although the latter is an integral part of the former that involves classifying, collecting, analyzing expenditure and data in addition to cleansing data, it is […]

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6 Ways Spend Management Improves Success

Spend management has become a successful best practice as it helps to control and optimize the way money is managed across an organization. It provides a wide array of benefits to organizations that purchase. It encompasses all aspects of a purchasing lifecycle, from obtaining goods to selecting suppliers to setting up contracts and even paying the various suppliers. Buyers procure through a holistic approach, becoming more competitive in the process. A study from Deloitte shows that spend management is more than sourcing and procurement. It requires the alignment of business units, finance, and others to focus on key spend categories. A […]

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Budget Control Basics

Project managers or other executives in charge of project management for a business or company must also prioritize project elements to fall within a predetermined budget. Budget control is often at the top of the priority list for any project. If your project spins wildly out of control and bounces out of budget boundaries, which is not uncommon with outstanding project ideas, it will likely fall into the pitfalls of incredible plans that simply didn’t fit the bill. Successfully deliver a dynamic project plan that stays within the lines with every proposal you organize. These planning strategies will help you […]

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How Blockchain Technology Has Revolutionized Global Supply Chains

Today, supply-chain transparency is more important than ever. Blockchain technology is at the forefront of today’s global trading industry. This cloud-based documentation system promises to untangle complex supply chains and provide an unprecedented level of transparency. Experts believe that it could become the new gold standard for business-to-business transactions. How Blockchain Technology Works A blockchain is a distributed database that allows multiple authorized parties to securely access confidential and sensitive information. These databases address security challenges and guarantee that records cannot be altered or falsified. Robust encryption systems make sure that customer data, financial records, legal documents and product certifications […]

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Managing Growing Supply Chains

When your small business is in the midst of scaling up, reliable suppliers can make or break your company. Securing adequate amounts of product is critical for successful expansion, but it is also the biggest problem area business owners face due to factors outside of their control. In order to manage supply chain processes successfully, keep the following four tips in mind. 1. Focus on Sales Forecasts Your company should focus on sales forecasts and plan at least two or three years into the future. Having a good understanding of sales forecasts, as well as diversifying your supply chain, will […]

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Vendor Management and Procurement Strategy

The business organization is a dynamic operation with evolving needs that cannot always be met through in-house resources. Vendors play a crucial role in the economic production chain, providing goods, services or business support systems so that organizations can function at optimum efficiency. The interplay between vendors and clients is a critical cog in the machine, yet vendor management relationships may be taken for granted when the procurement system seems to work smoothly. The Customer-focused Organization Today’s organizations put customer satisfaction at the front and center of their business strategy. This is a logical tactic, considering that customer acceptance and […]

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Understanding Four Different Types of Purchase Orders

Types of Purchase Orders If business owners and managers want to maintain enough supplies to operate and to meet the customer’s demands without overpaying, they must track their inventory. Some people are tempted to overlook this step, but they are putting themselves at risk of running low on supplies or buying more items than they need. While allowing their inventory to deplete can cause them to lose customers, buying more items than needed is a waste of resources. Those who want to avoid falling into the same trap will need to learn about the four types of purchase orders and […]

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Blanket Orders: What You Need To Know

Business purchases must be researched and documented, making the process somewhat drawn out by necessity. While there are many good reasons for businesses to do this type of standardized documentation, it does take time and energy. That is why many businesses also utilize blanket orders. What Is a Blanket Order? Blanket purchase orders are commonly referred to as blanket orders. These documents are intended to provide notice of a purchase agreement with a specified vendor. However, unlike normal purchase agreements, a blanket order creates a longstanding relationship. With a blanket order, the business can establish an ongoing relationship with a […]

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Purchasing vs Procurement: Understanding the Difference

Purchasing and procurement both relate to the acquisition of goods or services for your company. That is why most people do not think twice about purchasing vs procurement. For most people, the two words are synonymous. While the two processes have similarities, they also have particular differences. In order to leverage each process efficiently for your company, you need to understand the purchasing vs procurement distinction. Purchasing vs Procurement: By Definition Procurement is a broad concept. In fact, purchasing is part of procurement. Procurement is comprehensive, and it includes everything from selecting vendors to the negotiation of contracts. All goods […]

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Differences Between Purchase Orders and Purchase Agreements

Defining the difference between a purchase order and a purchase agreement can be confusing. Fortunately, with the right information, understanding the difference between the two is actually quite simple. Read on for a clear breakdown of these two agreements including what they involve, different types, and what sets them apart. Types of Purchase Agreements There are numerous forms of purchase agreements. For example, certain purchase agreements involve clear commitments to buy a particular item or quantity. There are also master agreements where additional products and services are added over time to increase purchase options. There are also purchase agreements that […]

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