Reduced inventory levels and increased inventory turns across the network can lower overall costs. With SCM, you can lower operational expenses with timelier planning for procurement, manufacturing and transportation. Procurement software carries out purchase orders and maintains the financial side of supplier/customer relationships.
Purchasing terms are distributed electronically throughout the organization for instant approval and expenses are logged for future reference in the next sourcing cycle. As the accounting segment of SCM systems, procurement also handles reporting and compliance issues. Example vendors include Coupa, SphereWMS, Microsoft Dynamics and WISE
Systems give suppliers the ability to monitor and replenish the buyer's inventory themselves. Various communication options such as XML, Web portals and email help multiple business partners increase visibility. Buyers can automate sold inventory reports and suppliers respond with new shipment notifications and invoices.