Procurement Functions General Information
Procurement Functions
General Information
Release 3.1
22000-010
The Fredrick Group, Inc.
P.O. Box 1698
Cumming, Georgia 30028
United States of America
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Before using this information and the product it supports, be sure
to read the general information under "Notices".
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First Edition January 1994
This edition applies to Release 3.1
of SynNova Manufacturing Management Solution Series 2 Procurement Functions
and to all subsequent releases
and modifications until otherwise indicated in new editions.
Consult the latest edition of the applicable SynNova system bibliography
for current information on this product.
SynNova welcomes your comments.
Please address them
to:
The Fredrick Group, Inc.
P.O. Box 1698
Cumming, Georgia 30028
United States of America
When you send information to SynNova
you grant SynNova a non-exclusive right
to use or distribute the information in any way it believes appropriate
without incurring any obligation to you.
© Copyright SynNova 1994
Notices
References in this publication to SynNova products, programs,
or services do not imply that SynNova intends to make these
available in all countries in which SynNova operates.
Any reference to a SynNova product, program, or service
is not intended to state or imply that only SynNova's
product, program, or service may be used.
Any functionally equivalent product, program, or service that does
not infringe any of SynNova's intellectual property rights
may be used instead of the
SynNova product, program, or service.
Evaluation and verification of operation in conjunction with
other products, except those expressly
designated by SynNova, is the user's responsibility.
SynNova may have patents or pending patent applications covering
subject matter in this document.
The furnishing of this document does not give you any license to
these patents.
You can send license inquiries, in writing, to the
SynNova Director of Commercial Relations,
SynNova Group, 1117 Perimeter Center West, Suite E-400, Atlanta,
Georgia 30338, United States of America.
This general information manual is intended to introduce the customer
to SynNova Manufacturing Management Solution Series 2 Procurement Functions.
It contains an overview of
Procurement Functions, and a checklist of its
functions.
This general information manual documents no programming interfaces
for use by customers in writing programs that request or receive the
services of SynNova Procurement Functions.
The following terms, denoted by an asterisk (*), used
in this publication, are trademarks or service marks
of IBM Corporation in the United States or other countries:
DB2 DATABASE2
IBM VSE
SAA Systems Application
SQL
This book introduces you to the SynNova licensed program
SynNova Manufacturing Management Solution Series 2 Procurement Functions, program number
22000-010, abbreviated to Procurement Functions in this book.
For further general information, refer to
Introducing SynNova Manufacturing Management Solution Series 2, 22000-010.
| Introduction
| Introduces the SynNova Manufacturing Management Solution Series 2 concept and Procurement Functions.
|
| Business areas
| Discusses the areas in your enterprise that can benefit from using
Procurement Functions.
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| Potential benefits
| Discusses how your enterprise can benefit from using Procurement Functions.
|
| Use
| Provides you with a checklist of the functions provided by Procurement Functions.
|
The information contained in this book will help you
to determine
whether this licensed program can be useful to you.
The following abbreviations are used in this book:
- CIM
- Computer Integrated Manufacturing
- DB2*
- DATABASE2*
- EDI
- Electronic Data Interchange
- MVS
- Multiple Virtual Storage
- Receiving Functions
- Used for SynNova Manufacturing Management Solution Series 2 Receiving Functions in this book
- SAA*
- Systems Application Architecture*
- SQL*
- Structured Query Language
- VSE*
- Virtual Storage Extended
Today's manufacturing enterprise faces many challenges:
increased competition in the marketplace, increased raw material and
labor costs, and shorter product life cycles are only a few.
You need to be able to compete effectively to
maintain your market position and competitive edge.
SynNova helps
bring together the functional areas within your enterprise.
It integrates your information resources making them available
enterprise-wide.
It allows business areas to exchange information about the events
that happen during every stage of manufacturing.
With its Base Edition, Application Edition, and Integration Edition, SynNova offers your enterprise
a CIM solution for business and production planning and control.
Based on relational databases, it offers you an open and flexible
solution that can grow with your enterprise.
In a manufacturing enterprise the purchasing of materials and
services from outside the enterprise can account for up to 60%
of the enterprise's turnover.
Being able to make informed, confident purchasing decisions can have a
great influence on your profit margins.
Procurement Functions covers your entire procurement process, from recognizing the
need to buy, through to selecting a supplier, raising a purchase order,
monitoring the progress of the order, and finally closing the order.
You can ensure that you and your suppliers exchange information
quickly and accurately by using the integrated EDI functions for
sending and receiving purchase order documents.
Procurement Functions helps you reduce time spent on clerical procurement tasks,
giving you more time for negotiation with your suppliers.
Procurement Functions supports your enterprise in the procurement of the materials
required by production, as well as goods and services that are required
throughout the enterprise.
As part of your enterprise-wide solution, Procurement Functions can support a number of
areas.
Information is available to the material requirements planner
on the actual amount of an item delivered.
If the amount of an item received is less than or more than the ordered
amount, Procurement Functions sends you a message so that you can initiate the
replanning of the item.
Procurement Functions helps you manage the procurement of goods from issuing the
quotation to closing the purchase order after the goods have arrived.
It can automatically process purchase requisitions,
taking away the time-consuming tasks of comparing prices and delivery
dates.
For one-off orders and crisis orders, it supports you in carrying out
these tasks manually.
Accurate purchase order information helps you ensure that goods arrive
as ordered.
You can check the received goods against the open purchase orders.
Procurement Functions helps ensure that the materials arrive where they are needed
as quickly as possible.
With Procurement Functions
you have order information readily available to you.
Together with information on the delivery notice,
you can check the amount of an item received against the invoiced
amount.
Procurement Functions can bring your enterprise many benefits.
It offers you many advantages over manual purchasing systems and
stand-alone solutions.
Procurement Functions allows you to reduce the time you spend on clerical tasks,
such as looking for copies of orders, or trying to find out which orders
have been received.
Many of the procurement tasks can be carried out
automatically with Procurement Functions.
Procurement Functions
gives you more time for planning and analyzing the supply situation,
negotiating prices with your suppliers, and for passing on information
about changes in requirements and the servicing of deliveries.
You have more time to get the best deal for your enterprise.
With the integrated EDI functions, you and your suppliers can exchange
purchase order information quickly and accurately.
This is invaluable for enterprises
that operate a just-in-time ordering
policy.
Because Procurement Functions makes use of relational databases, data is entered
once only and stored in common databases.
This ensures that the same up-to-date procurement information is
available to everyone who needs it.
Procurement Functions addresses standard procurement procedures.
Every manufacturing enterprise has its own procurement
requirements.
Because of the open and flexible structure provided by the use
of relational databases,
you can add your own routines or those provided by other manufacturers
to meet the individual needs of your enterprise.
You can ensure the changing requirements of your enterprise are always
met.
Procurement Functions can support you in the various stages of your
procurement process.
Here is a checklist to help you evaluate how it could be used in
your enterprise.
- Supplier information
- Quotations with current prices, delivery times, and
conditions
- Order information.
You can maintain the following:
- Prices and price breaks per supplier
- Validity of the quotation
- Summary of the information per item
- Summary of the information per supplier
- Out-of-date quotations form price history information.
Procurement Functions prepares quotation requests and removes obsolete ones.
Procurement Functions can automatically select a supplier for an order using
priority codes:
- Sole or preferred supplier
- Balance purchases for several suppliers
- Least total cost for required amount.
You can create purchase requisitions manually and automatically
for all planned orders nearing release and:
- Select supplier and price
- Combine requisitions for the same item to obtain price break
advantages
- Split requisitions to include more than one supplier
- Assign priority and expected release date
- Number requisitions.
You can group requisitions with the same supplier and general terms
into purchase orders.
You can process:
- Orders for one or more different items
- Orders for items with one or more supplier
- Call-offs against blanket orders.
These can be for production materials, as well as
nonproduction materials,
services, and equipment.
You can release open purchase orders manually and automatically
and:
- Print and mail the order to the supplier
- Sent the order directly using EDI.
When you enter a purchase order, you can specify follow-up
activities.
These include:
- Shipment reminder letters
- Confirmation requests.
You can use information from the receiving dock to:
- Partially close the order
- Completely close the order.
If your suppliers use EDI, you can:
- Send orders
- Send order change requests
- Receive order acknowledgments
- Receive order change acknowledgments.