8.1. Introduction to Purchase Management

What is Purchase Management?

Purchasing is the function of buying Goods & Services from External Sources in an Organization. The Purchase department initiates the function as and when required by the company or Organization. Purchase Management tries to streamline the purchase function of an Organization by defining a workflow.

Some of the Objectives of Purchase Management are:

  • Maintenance of proper and updated records of all transactions.

  • Avoid stock out situations.

  • To follow financial prudence.

  • Reduction in inventory cost.

  • Development of good relation with existing vendors.

  • Managing the departmental expenses of an Organization.

Some of the Key Features of Motadata Purchase Management Module:

  • You can use the CMDB as an inventory for purchased Asset for future reconciliation.

  • You can configure the vendor-related information, and add products and their prices directly in a PO (Purchase Order).

  • The link between products and vendors (with key information visible) helps Purchase Managers in making a informed decision.

  • All stages in a Purchase process is clearly defined (with each stage having custom rules) in a PO (Purchase Order).

  • Custom fields in a Purchase Order.

Note

Any activity related to Purchase requires specific rights.

8.1.1. Use Case:

Fictitious Inc is on-boarding five people in the Marketing department. A person from the HR department has filed a Request with the Helpdesk to allot five laptops to the new recruits. A Technician who is assigned (Learn More About Assignment) (it could be any other Technician) to the Request takes the following actions to resolve the Request.

Note

Purchase is a multi-stage process. Learn about the entire Purchase Management workflow.