Procurement vs Purchasing vs Supply Chain Management – business people tend to use these terms interchangeably. While they are related and are all part of a company’s finance or accounting function, there are differences.
Let’s understand each one and the differences between them in more detail.
Procurement is an essential component of any business. In order to operate effectively and produce its own goods and services, every organization must procure various goods and services from third party vendors.
Purchase requisitions and purchase orders – more commonly referred to as POs – are both key documents in an efficient procurement process for any business. They enable teams to plan purchases adequately, plan budgets, and provide proof of spending in case of financial audits.
People often confuse purchase orders (also known as POs) and invoices or use them interchangeably. In fact, they are two different documents that each serve their own purpose. Both are key elements of the procurement process for any business.
But what’s the difference between the two – and when would you use a PO vs an invoice?
Practically every organization has at least one SQL database and often many of them. Many day-to-day business activities are simply more useful if they can access information from SQL databases on-demand.
For example, when a customer calls about a mistake on their order, your Customer Service personnel will be able to better help the customer and solve the problem quickly if they have visibility into order history from the database. Faster problem resolution leads to happier customers.
If you’re like many other businesses, your HR department is overloaded with paperwork. Honestly, that’s a shame – wouldn’t you rather have them focus on attracting and recruiting talent instead of sifting through endless paperwork?