| When deploying and online e-procurement application, it | | | | approval process that allows all purchase requisitions |
| is critical to analyze each department's procurement | | | | beneath a certain amount to be approved by lower |
| process flow to determine a baseline set of business | | | | level management. As the purchase requisition |
| rules. Each area within the enterprise has evolved their | | | | increases in amount, higher level management is pulled |
| own standards that best suits their needs, | | | | into the approval process automatically. Using an |
| unfortunately, these standards were based on | | | | e-procurement platform to assist in implementing this |
| business practices established in the early 90's. | | | | type of process can be very effective in directing |
| Today, many companies want to increase throughput | | | | purchase orders to the right approvers at the right |
| and streamline the approval process but can't because | | | | time. |
| their manual processes fall down due to the inability to | | | | Implementing an e-procurement tool to help simplify |
| handle the volume of orders. Consequently fixes like | | | | your approvals is not difficult once you have those |
| blanket purchase orders were put in place which can | | | | rules defined and mapped out. Redefining the approval |
| streamline the ordering process but diminish controls | | | | process and following a best practice model to |
| and oversight. | | | | determine threshold amounts will need to be |
| When implementing an online e-procurement solution, | | | | developed as policies first, but once in place, can |
| the concept of dollar based threshold routes can help | | | | increase processing throughput without increasing |
| to create a more efficient way of approving | | | | workload. |
| purchases orders and still maintain controls and | | | | In summary, implementing e-procurement with dollar |
| accountability. A management policy needs to be in | | | | based threshold routes can help an organization |
| place before the process can be created, but this is | | | | become more efficient as their procurement process |
| usually not an issue if the overall goal is to manage the | | | | flows become more streamlined without sacrificing |
| volume of purchases in an effective manner. | | | | controls and accountability. |
| Basically a dollar based rule can be designed into the | | | | |