Securing the Supply Chain: Automating Raw Material Procurement in Manufacturing

Purchasing Process Gone Away

For a factory to meet its quarterly goals, the supply chain has to work like clockwork. But in a lot of mid-tier businesses, the purchasing process is purely dependent on the human memory and disorganized emails.

The purchasing manager finds out that the plant needs more industrial lubricants. The manager emails three different suppliers to get some prices, waits 48 hours to receive answers, then haggles the prices on WhatsApp and manually enters a Purchase Order in an isolated accounting software.

It’s an incredibly tedious process. And, because there is no history available on the suppliers, the purchasing manager doesn’t know that Supplier B has failed to deliver on time in the last three out of five deliveries. The factory is making huge investments without any foresight.

> Smart Procurement Using Isaii Procurement System

To safeguard profits and ensure uptime, procurement needs to be digital and automated. The Procurement Management System built by Isaii Technologies functions like a smart, automatic gateway for your entire supply chain.

Since it’s embedded in the ERP ecosystem, it has complete context-awareness of the actual requirements of your factory:

• Automatic Reorder Triggers: The procurement module continuously monitors the Visual Inventory system. As soon as raw aluminum goes below the safe level, it automatically creates a Purchase Order for the desired supplier based on the negotiated volume rates, ready for one-click approval from the executives.

• Vendor Management: All vendor activity is tracked. Vendors are automatically rated based on speed, price changes, and defect rate of material (from the QA department). Come negotiation time for annual contracts, the procurement manager has the data at hand to negotiate better prices.

• Financial Protection: The procurement system has strict Role-Based Access Control (RBAC) and approvals hierarchy. While a junior buyer may initiate a PO worth ₹50,000, any PO above ₹5 Lakhs is automatically sent for the CFO’s approval through the dashboard.

> Making Procurement Your Competitive Edge

When the world economy is as unstable as it is right now, then your supply chain becomes either your biggest weakness or your biggest strength. This happens when you streamline and automate your purchasing processes, preventing stock outs and slashing down the cost of materials.

Gain control of your vendor network. Click here to learn about the Isaii Procurement Management System.