Procurement Management Information System (PMIS)

What is the role of procurement management information system (PMIS) in procurement?

Procurement professionals are increasingly turning to cloud and mobile solutions to streamline and automate operations. As supply chains become more complex, the need to drive efficiencies and reduce waste activities is important, to maximise value. Here are some of the ways in which a procurement management information system can help your organisation.

• Electronic bidding:
  Such as invitation of bids, quotations, and RFPs. The templates are already prepared, and the system will automatically generate an email notification to the relevant parties involved. The system will also allow you to evaluate bids all in one place, without having to rely on manual processes.
• Contract award and monitoring:
  A contract template gets created and allows you to track it in real time. It will notify any person of milestones, progress, and time frames. Contracts cannot be modified, making them extremely reliable and reassures all parties involved that no manipulation of contracts has occurred.
• Payments:
  The payments after completion of a contract can be automatically released and can be issued through the procurement management information system.
• Tracking of information:
  All information is tracked, recorded, and stored safely online.

What is a procurement management system?

A procurement management system collects, stores, and streamlines procurement information and activities. This information includes procurement history and capabilities of suppliers, bid evaluation and contract execution. It’s an online based system that stores information around all procurement activities.

What are the advantages of PMIS?

Procurement management systems helps organisations to become more agile and integrate key functions of the procurement process in one place. Here are some of the benefits of using a procurement management system.

• Automation:
  Manual processes are inefficient and can result in missing documents. Procurement management systems helps to automate and streamline manual based processes, which reduces the amount of time and effort to complete them.
• Improves supplier relationship management:
  Procurement management systems helps you to evaluate and validate a potential supplier’s suitability, speeding up the selection process.
• Contract management:
  Manging contracts can be a time consuming, but with a procurement management system, you’ll have increased visibility whenever you need it, allowing you to manage compliance. As contracts in a procurement management system are predefined in terms of language and templates, there is less risk involved.