A Procurement Management System (PMS) is a set of systems and
procedures that gather data from range of sources and present it in a readable
format which used for strategic procurement decision-making, analysis and visualization
of information in a purchasing organization. Currently, Procurement Management
System (PMS) relies largely on technology to compile and present data, but small
business can’t afford to invest hefty amount on technology. Those small
business can use Excel to compile and present the data.

Benefit of Procurement Management System

Manage your company’s procurement system to automate processes from order to payment.

1. Making Procurement Decision

The main purpose of a Procurement Management System (PMS) is
to make Procurement Managers’ decision-making more efficient and productive

2. Spend Analysis

Procurement Management System (PMS) can provide managers
with everything they need to perform in-depth analysis of procurement
management. With the help of Procurement Management System (PMS), purchasing
organization can analyze the spend broadly. They can analyze followings:

        a) Category wise Spend

        b) Item wise Spend

        c) Department wise Spend

        d) Total cost realized, retain and avoidance against total spend, etc.

3. Front-Line Benefits

Front-line buyers can use a Procurement Management System (PMS)
to perform their jobs more effectively and improve their performances with the
help of following data

        a) PO/GRN issued by the buyer

        b) Cost of PO issued by the buyer

        c) Savings generated by the buyer

        d) An individual buyer can see his/her performance against his/her peers. 

How to create & apply?

It’s a combination of procurement cycle & basic excel knowledge to create procurement dashboard. If you don’t find time to create it by your own, you can use my template by replacing your raw data. If require, a video tutorial will be uploaded soon.

         

        Few rules to use the template:

        1. Username: admin    and Password: 123

        2. Work on ‘Raw Data’ sheet. Don’t change sheet name

        3. Don’t change description [A1:AB1] in the ‘Raw Data’ sheet and don’t
insert any

            column between A to AB. You can insert from AC column onwards (if
require)

        4. Numerical data can be replaced with numerical data only

        5. Delete my data from ‘Raw Data’ sheet and insert your data to use it

        6. Click on download to get the file

Summary

Based on Procurement Information System (PMS), purchasing manager
can strategies procurement operation and forecast the procurement budget
allocation. He/she can continuously improve his/her and team performance to
create high performance Procurement Team within the organization.