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Q9-1. What are the fundamentals of a Procurement process?
The procurement process involves three core activities—order, receive, and pay. These activities support inbound logistics by securing raw materials for production, ensuring efficient flow from suppliers to operations within the value chain.
Q9-2. How does the Procurement process at CBI work without SAP?
Without SAP, CBI’s procurement process uses siloed database for sales, purchase order, warehouse, and accounting, managed by roles like warehouse manager and accountant. This leads to inefficiencies, such as manual coordination, data duplication, and delays in tracking demand, inventory levels, and payments, resulting in fragmented operations.
Q9-3. How does the Procurement process work at CBI with SAP?
With SAP, CBI adopts a differentiation strategy, leveraging and integrated database to streamline procurement. SAP automates purchasing, goods receipt, and accounting through a three-way check. This reduces errors and labor and also enhances data accuracy and responsiveness across supply chain processes.
Q9-5. How does the use of SAP change employee skills?
SAP shifts employee skills from manual, role-specific tasks to process-focused skills. Employees require training in SAP modules, analytics, and cross-functional collaboration. This reduces reliance on isolated tasks and helps employees understand more of how the processes are integrated.
Q9-6. What new IS will affect the Procurement process in 2031?
By 2031, AI, IoT, and blockchain will transform procurement. AI will enhance demand forecasting, IoT will enhance real-time inventory tracking, and blockchain will ensure open supplier transactions, which will help improve efficiency and trust within the procurement process.
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