Purchasing Process Redesign

Most organizations recognize that purchasing process redesign efforts often precede the development of low-dollar purchase systems. Properly executed redesign efforts should lead to faster cycle times and simplified processes that result in reduced transactions costs.

The purchasing process is composed of many subprocesses, which means it can benefit from process mapping and redesign. The low-value purchase process affects hundreds or even thousands of individuals throughout a typical organization—users in every department, office, plant, and facility; accounts payable; receiving and handling; purchasing; systems; and of course, suppliers. Anyone with a need for low-value goods or services is part of the low-value purchase process.