Decentralization of procurement process.pptx

Decentralization of procurement process.pptx

1. Decentralization of Procurement Process REPORTED : Prepared by IT department 1 /14

2. Decentralized purchasing: What does it mean? Where purchasing is fully decentralized, each department is responsible for its own purchases/Contracts. This means that purchasing activities are spread over departments. The centralize or decentralize purchasing, as always, depends on the context and the business needs. In many cases, adopting a hybrid model, incorporating the best features of procurement models is the most suitable choice for maximizing cost savings and achieving speed and efficiency. 2 /14

3. Advantages of Decentralized Procurement Reduced bureaucracy (system of organization ) Department has total control over the spending and procurement process and reviews its operations and performance .  Effortless collaboration Each department can readily purchase emergency items on demand to suit short- and long-term needs. Local sources and suppliers Decentralized purchasing allows for more personalized interactions between site staff and suppliers, resulting in lower prices, valuable customer bonuses, and cheaper transportation .  Accelerated purchasing process Decision-making is also faster in a decentralized model because the approval workflow is shorter, and communication between requesters and the purchasing team is substantially faster. 3 /14

4.  Contracts are used to register the long-term agreement between your business and the vendor. Contracts may also include renewal options. Contracts are typically used for service payments , these are legally bound documents. Contracts include comprehensive and detailed terms and conditions, such as warranties, indemnities, payment terms, amendments, and dispute resolution mechanisms. What is Contracts? 4 /14

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6. Procedure for Contracts Departments responsibility for Contracts of Technical/specialized category Department represent responsibility to fill the data and maintain their contracts. Contact the vendors for Quotation Quotation Analysis Recommendation report Approvals as per authorization Matrix IT Department Action Customized Contracts Forms (GUI) with oracle purchasing module integration . Approved authorization Matrix for Contracts Approval process in Oracle system for Purchase requisitions and Purchase Orders (Contract type).   6 /14

7. Contract Process stages 7 /14

8. Contract flows Process 8 /14

9. Procedure for Purchase Orders Departments responsibility for Purchase Orders other than common or SLA items Department represent responsibility to fill the data and maintain their Purchase Orders. Contact the vendors for Quotation Quotation Analysis Recommendation report Approvals as per authorization Matrix IT Department Action Customized Purchase Order Forms (GUI) with oracle purchasing module integration . Approved authorization Matrix for Purchase Orders Approval process in Oracle system for Purchase requisitions and Purchase Orders. 9 /14

10. Process of Purchase Orders 10 /14

11. Invoices and integrations with PO/Contract Departments responsibility for the Invoice process Departments to upload and maintain the procurements invoices. Invoices Approvals as per authorization Matrix IT Department Action Integration of invoices with PO, AP modules in Oracle ERP. 11 /14

12. Process of Purchase Orders 12 /14

13. Q & A 13 /14

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