How to Automate and Manage Supply Chain Purchases

One of the hottest topics in the media today is how the disaster in Japan is wrecking havoc on global businesses’ supply chains. Many rely on Japan’s manufacturers for a number of product components, from silicon microchips to smartphone touchscreens. As plants continue to have delays and shutdowns in wake of the earthquake, tsunami, and nuclear fears, many businesses are having to delay shipments or find new suppliers.

So what is the solution? Situations such as these are both unavoidable and unexpected, but many executives are now looking to software for automation and management of their supply chain purchases. These procurement software systems offer

• strategic sourcing management to find suppliers that are a “best fit” for a company’s needs
• advanced reverse-auction management to obtain the most competitive supplier bids
• spend analytics to analyze past purchases and make smarter choices regarding new sourcing (whether it is direct or indirect)
• contract management applications to assist contract negotiations

For more information on these and other trends for procurement software, check out Software Advice’s 2011 Market Trends Report: Procurement Systems.

This is a guest post from Michael Koploy, ERP Market Analyst at Software Advice.