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Settlement process: definition and important aspects for buyers
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The handling process in a nutshell:
A handling process describes the systematic sequence of all activities from the notification of requirements to the payment of a procurement. A clearly defined handling process is essential for purchasing, as it creates transparency, minimizes errors and increases the efficiency of procurement processes.
Example: A medium-sized company reduces the average processing time of an order from 12 to 5 working days by implementing a standardized 6-step handling process (notification of requirements, request for quotation, order, goods receipt, invoice verification, payment).
Contents
What is the settlement process?
The purchasing process covers all operational steps, from determining requirements and order management through to goods receipt and invoice verification. It forms the backbone of procurement management and ensures that materials and services are provided on time, in the desired quality and at optimum cost.
Core components of the settlement process
Importance of the settlement process in purchasing
An efficient handling process is crucial for smooth operations and has a direct impact on costs, quality and delivery times. In the procurement environment, it helps to optimize internal processes, conserve financial resources and increase the company's competitiveness.
Settlement process: from manual processes to digital transformation
Building on the theoretical understanding of the fulfillment process, the practical importance of an efficient purchasing process becomes clear. Traditional methods are reaching their limits in today's dynamic business world. Companies are increasingly confronted with the need to optimize their processes in order to reduce costs and remain competitive. The transformation to digital solutions in the handling process is therefore essential.
Old: Manual processes
Traditional approach: In the past, handling processes were often carried out manually. Orders were written on paper, quotations were obtained by fax and supplier contacts were maintained by telephone. Documentation was kept in physical folders and coordination between departments was time-consuming. This approach was not only inefficient, but also prone to errors. Information was lost, transparency was lacking and the response time to market changes was slow. The lack of integration led to duplication of work and increased process costs.
New: Digital Procurement
Digital procurement: The introduction of modern technologies is revolutionizing the handling process. Digital procurement uses electronic systems to automate and digitize purchasing processes. Quotations are obtained and compared online, orders are transmitted electronically and data is exchanged in real time. Key innovations such as cloud-based platforms, electronic catalogs and automated workflows enable seamless integration of all process steps. This leads to a significant reduction in processing times, increases transparency and improves data quality. Practical benefits include a reduction in process costs of up to 30% and faster responsiveness to customer requirements.
Practical example: Implementation of digital procurement in an industrial company
A medium-sized mechanical engineering company decided to introduce a digital procurement system. By digitizing the ordering processes, throughput times were reduced from five days to one day. The error rate in orders fell by 70% as manual entries were eliminated. In addition, the improved data analysis resulted in savings of 15% in procurement costs. procurement costs were achieved. The company benefited from better supplier selection and was able to reduce stock levels by 20%, freeing up significant capital.
Conclusion on supplier evaluation
The handling process in purchasing is a complex but crucial element for a company's success. Standardized processes, digital workflows and clear responsibilities can reduce costs, ensure quality and optimize delivery times. The integration of modern technologies such as AI and blockchain will increasingly automate the process and make it more efficient. Only companies that continuously optimize their handling process and adapt it to new requirements will remain competitive in the long term.
