You will quickly realize that Purchasing Management with CrowdChain gives you very good control of your Supply Activities. With the features in CrowdChain you will se new opportunities in your Supply and Sourcing.
CrowdChain will help you to get a healthy balance between reducing your inventory and maintaining a high delivery capability.
For every product, you can define wether it should be “purchase to order” or “purchase to stock”.
If you select “purchase to order”, it practically means the reorder quantity is zero. In that case you will not hold any stock, except for the quantities that may remain in stock after the sales order is fulfilled.
For a product that is “purchase to stock”you can provide a reorder level. This means that when the available quantity of that product reaches the order level, CrowdChain
will automatically create a purchase order for that product. The purchase order will be put in preliminary status, and will only be submitted after it is approved by an authorised user. As a user you can select wether the reorder quantity for a particular product should be set manually, or calculated by CrowdChain.
You can only select the reorder quantity* link to a fact page of the thinking around reorder quantities… if some key values have been set. These key values are …..
CrowdChain is calculating the economic order quantity based on the Wilson formula.
- Reorder quantity
- Why should the reorder quantity be this or that…?
- What is the cost of carrying inventory?
- What is the shelf life of the product?
- What is the risk to loose sales because the product is out of stock and what is the impact?
- What is the supplier’s delivery time from order to Stock?Supplier selection
CrowdChain will create a preliminary purchase order directed to the main supplier for that item when the available quantity of an item goes below the reorder level.
Purchasing Management is the identification, selection and management of suppliers for the products that will be procured.
- A supplier is an entity from which products can be purchased.
Procurement Management is the ongoing supply of products to maintain the requested inventory levels of goods.
Purchase Order (P.O.) (core)
- A P.O. is the order sent from the buyer (customer or client) to the seller (Supplier or vendor) requesting the purchase of products.
- When a user is adding an order line on a P.O., the system displays key information of the particular item:
- Quantity in stock, quantity already ordered not yet Goods Received, quantity from Sales Orders not yet dispatched.