Business Automation and Software Blog

Manufacturing Business Software Can Help Procurement Paradigm Shift

Posted by Robert Baran on Wed, Nov 01, 2017 @ 11:00 AM

manufacturing business software

Manufacturing business software has helped companies keep pace with the many changes resonating throughout the business world. The push for lean manufacturing processes, just-in-time delivery, mass customization, and more trickle down through nearly all types of manufacturing. The repercussions of new technologies are felt everywhere, including the procurement department.

Procurement often seems like the last to be invited to the party when it comes to changes in an organization. In fact, many treat procurement as an afterthought—“Oh, that’s the department that finds a new vendor for light bulbs for the warehouse,” for example. Your procurement department needs new manufacturing business software just as other areas of your operations so it can keep pace with developments and incorporate best practices.

Let’s examine new technologies and their impact on procurement.

Manufacturing Business Software for Procurement and Supply Chain Management

The Internet of Things (IoT)

The Internet of Things (IoT) connects devices, equipment, containers, pallets, and other items through internet-based communications so data is transmitted from things into your manufacturing business software.

Using the IoT, manufacturers are able to:

  • Track equipment location
  • Assess gas mileage, transportation time, and arrival time for vehicle fleets
  • Use geo-location to identify locations for items in the supply chain
  • Monitor temperatures on refrigerated containers
  • And more

The IoT can help procurement do many things. The IoT can provide data to procurement on the consumption of goods. It can monitor copiers, equipment, and other machinery to assess what is being used, how often it is used, and what the impact is on the business. This can help procurement assess reordering needs to keep the supply chain moving.

Feedback loops between equipment, people, and customers will help procurement assess, analyze, recommend, and order using smarter, better data.

The Need to Leverage Big Data

Speaking of data, one of the ramifications of using the IoT is that the volume of data produced by computer increases. As more data flows into an organization, there is a greater need for data warehousing, data analytics, and data processing to manage and use existing data.

Manufacturing business software with strong data analytics tools can help you use all your existing data and incorporate IoT data, as well. ERP software such as SYSPRO and Sage 300 come with built-in reporting tools that can incorporate multiple data streams through one comprehensive software package. The resulting data visualizations can be used by company leaders to make smarter, better decisions.

Procurement Is More Than the Ordering Department

Procurement is often thought of as the vendor management department, but with the advent and adoption of manufacturing business software, that is changing rapidly. Procurement’s role in supply chain management was always important, but now it is shifting to encompass data that can help guide the company towards achieving KPIs and other important metrics.

Through the Internet of Things, many types of manufacturers can harness data to track shipments, assess equipment usage, and monitor the condition of goods during shipping. This data, when used in conjunction with manufacturing software solutions, offers powerful insights to improve profits and productivity.


For more information on SYSPRO ERP or Sage 300 visit PositiveVision. PositiveVision provides consulting and services to manufacturing, warehousing, and distribution companies. ERP automates many businesses processes and can help you improve communication with customers, among other benefits. With the right data, you can better manage your business. Learn more on our website or contact us today.

Topics: Sage 300, SYSPRO