School of Information Systems

Importance of Project Procurement Management

Nowadays, Procurement Management has been widely used in almost all organization around the world. In this technology era, everything has became automated. That’s why, the Information Technology has been common in every aspects even in organization life till daily life. Information Technology is believed as one of key to achieve the efficiency and effectiveness. It makes everything looks simple and easy for any activities. It helps to reduce costs, times and resources.

In organization or company itself, information technology also took place to support the business process in every aspects. And one of the big impact that company can receive such as in procurement processes. Procurement department is one of the company departments that give big leverage in consuming the costs, times and resources. Procurement is believed consume almost 60% costs all of the entire costs in business processes. It makes company should smart enough to arrange and maintain the costs that will be consumed, beside it, time and resource become as the consideration matter as well.

To equalize the high demand and the willingness of company to efficient and effective as possible. So, procurement management come as the one of solutions to reach the efficiency and effectiveness in business process especially in procurement.

Procurement management helps the company to get the best decision making in purchasing. Basically procurement management is related in supply chain management. Because procurement management also do the direct purchasing like supply. That helps company to reduce time to do the purchasing manually. On the other hand, procurement management also handle the indirect purchasing that know as operational in company, it helps to reduce the costs, times, and resources that will take much costs, longer times, and many resources, if it is done manually rather than automatically.

Procurement management has done interesting best practices that really help the company to achieve their goals in making many benefits and less expenses. It’s really interesting to know how actually the procurement management can support and done reducing the costs, times and resources that yet it should take many costs, times and resources.

Sugiarto Hartono,S.Kom., MMSI