Use Of Information Systems And Etr On The Purchasing Process
2108 Words9 Pages
Topic: The Use of Information Systems and ETR in the Purchasing Process
The purchasing process involves the use of purchasing systems which provide ways for firms and companies to purchase and acquire goods and services at the best prices and at optimum terms. Purchasing Information Systems are used in decision making at different levels as tools for planning, analyzing, monitoring and controlling the business operations. These systems can be use for various functions like invoice management, ordering of orders automatically, management of supplier contracts among other uses. Enterprise Resource Planning (ERP) systems are business software systems that are…show more content… The systems are to be installed in the Starshine Electronics Company.
The following is a diagram explaining the various steps involved in the purchasing process. The first step involved is to identify the need for certain goods. These can be in form of raw materials or equipments. The need must be felt and identified before taking any step to purchase the product. For example, Starshine Electronics may want to offer transport as an after sale services to their customers. In order to do this, a vehicle is required. The need of this vehicle is then identified and the first step in purchasing the product is put into action.
The second step involves selecting the specific type of product that Starshine Electronics desires to purchase according to their needs. There are various types of products that can be used to do a given function and hence there is need to decide the product that suits you better. For example, there are many types of vehicles in the market from different manufacturers and hence Starshine Electronics should decide on the best model from a particular manufacturer to order. After selecting the product, a purchase team needs to be appointed or selected. The formation of the team helps greatly in the management of the purchase process through conducting research, analyzing the findings and planning on the necessary technical specifications for the product and the process involved in purchasing the product. Research about the product