Purchasing is: understanding and difference with e-purchasing

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Purchasing is: understanding and difference with e-purchasing

Purchasing is understanding and difference with e purchasing

The basic understanding of Purchasing is a process of ordering goods or services that are needed or needed by the Business Entity or individual.

However, in an all-digital age like today, most people have started using the internet and also digital technology to shopping in goods or services they are desirable. The existence of convenience and can be accessed wherever and whenever it is able to provide added value for the customer and also the company.

Well, Purchasing is one of the changes, the existence of digitalization and more advanced technology makes Purchasing turn into e-purchasing.

In Indonesia alone, this term is still relatively new and is always synonymous with the purchase of the procurement of a goods or services related to the government. But abroad, e-purchasing can no longer be used by government, normally society has now begun to use e-purchasing.

Purchasing is – definition and responsibility

If translated into Indonesian, the meaning of purchasing is the purchase carried out by an organization which is a process of ordering goods or services used to meet the smooth operational activities.

In general, every company has its own Purchasing HR. Their role is to do all the purchases of goods requested by other divisions in the company. In addition, Purchasing is also given full responsibility for the goods or services that he ordered.

Well, here are various responsibilities and tasks that must be done by Purchasing:

1. Receive and analyze company needs

Purchasing must and must accept purchases as long as the purchase is carried out for the needs and interests of the company. But, it is recommended that Purchasing always analyze re-whether the goods or services they order are actually needed or not.

2. Analyze and choose suppliers and vendors

Searching for and also determining suppliers is a task that Purchasing must do. They must have various supplier data that match the quality of the company, and also have to be in accordance with the price listed in the budget.

The selection of these suppliers can be through proposals offered directly, advertisements, or suggestions from other parties.

3. Pay an order on supplier

Every order made by the Purchasing must fill out the Purchase Order form first. The form must be made into several copies in order to be used as an archive. Later, the archive can be used as evidence that the company has ever or is warming up on the product of the goods or services.

4. Purchasing staff monitor shipping goods

In the delivery period of goods, the purchasing section must also continue to monitor the latest locations of the goods or services, until it has actually arrived at the company’s warehouse. If the product purchased is a service, the purchasing team must be able to ensure that the work has been completed in accordance with the initial contract.

5. Check the quality of goods orders & work

After the item arrives, the purchasing team must re-examine the product that has been ordered. They must be able to ensure that the item is in accordance with the amount and capacity. If anyone doesn’t match PO, then the Purchasing can return to maintain the quality of the company.

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6. Purchasing staff pay invoices

In this case, payment can be made by the Purchasing Team in a circular or cash, depending on the collaboration that has been agreed upon by both parties. The Purchasing Team must be able to pay off the purchase carried out by the company to truly paid off, so that every purchasing team must be able to have good communication skills.

Based on the explanation above, we can conclude that purchasing is a purchasing activity carried out manually. The process can be done by email, telephone, or other ways.

However, the weakness of this system is the purchasing section team must always make contact with the supplier, starting from the order stage, until the item arrived at the location. This will certainly increase costs and ineffective. What’s more if the purchase is very much or more than one item.

However, the advantages that are felt from this activity are the purchasing team can be more familiar with its suppliers. But, the advantages sometimes become a separate boomerang. Because, suppliers can be disrupted, because the warming they receive is also more than one or two companies.

E-purchasing is – definition

For Indonesia itself, e-purchasing has been set in the Presidential Regulation or Presidential Regulation Number 54 of 2010 related to the procurement of government goods or services. It can be said that e-purchasing is a procedure for purchasing goods or services with an electronic catalog system.

Excess e-purchasing

1. Easy to use

E-purchasing is able to provide convenience for each user, especially for buyers. Why? Because in it is listed complete all ways to purchase or enter into the procurement of goods and services, so that later no longer need to be confused.

2. More accurate

E-purchasing is able to provide certainty in technical specifications and also provide a reference for the same or almost the same price. So, you don’t need more troubled in terms of making specifications, because everything is already in the e-catalog.

3. Save costs

E-purchasing can save and reduce the cost of physical documents. If generally Purchasing uses a lot of paper, using e-purchasing, all of them are in software or software in the form of data that has been filed. Users can still make reports from the history feature provided.

4. There is no objection process

Because the entire path is set in the system, there is no objection process or anything. Every winner or vendor will be automatically determined and will be published according to the qualification.

With this, every problem or other legal problems can be easily avoided. Because, when someone decides to be able to follow a procurement, then indirectly they will approve the regulations that have been listed in it.

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5. Easy to watch

E-purchasing will also be easier to supervise and monitor. As we have mentioned before, e-purchasing has a history feature. With this feature, management will be easier to report and also analyze the material to collect existing data.

6. The market is easier to form

E-purchasing will also form the market more clearly and measurable. Because, e-purchasing is the procedure for purchasing or sales previously arranged. So, it will indirectly make the SOP itself. In addition, e-purchasing will also be easier to determine the market segment, because the goods and services that are previously searched are completely explained.

E-purchasing weakness

1. Users must adapt to use

E-Purchasing is indeed able to reach every small trader to be able to compete in a healthy manner with market traders. However, because it is done electronically. There are still many small traders who don’t know the procedures for use.

Things like this can be overcome by organizing online introduction programs and the introduction of procurement.

2. The internet is not available in all regions

The development of e-purchasing is also very limited to several regions. Because in it using the internet database, some areas that do not have an internet network, of course, cannot follow the existing process. Such problems cannot be addressed directly.

3. Hacked Hacked Risk

Because internet-based, this system has a large risk of hacker attacks or hackers. Their aim is to hack diverse, starting from because it’s just, or want to get the desired data. Data is an important thing for parties relating to e-purchasing, because in it concerning the company’s main secrets.

To be able to avoid it, then an increase in the security system is needed regularly. You can hire those who are experts with the IT world so they can be given responsibility in seeking system weaknesses and fixing them.

Conclusion

Based on the full explanation above, we can draw the conclusion that purchasing is the purchase carried out by an organization which is a process of ordering goods or services used to meet the smooth operational activities.

With the development of technology and all-digital times like today, Purchasing also evolved into e-purchasing. This activity has its own advantages and disadvantages. But more important in doing purchasing is the right and neat financial management.

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