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Holger Dermann, eBusiness & Services Project Manager at the Hoffmann Group, explains his forecast for 2024 in a short technical article. Important topics such as a shortage of skilled workers, supply chain legislation and digitalization will continue to challenge companies in the coming years. This must be counteracted at an early stage.

Efficient procurement management is crucial for companies to strengthen their competitiveness and optimize their operating costs. In this context, choosing the right procurement partner plays a central role. A procurement management partner can help companies find the right suppliers, reduce costs, minimize risks, and increase efficiency in the procurement process.

In today's dynamic business world, efficient handling of ordering processes is crucial for a company's success. A B2B sales platform offers companies the opportunity to to optimize processes and their improve sales strategies. But what exactly is a B2B sales platform and how can it be used effectively to simplify and accelerate ordering processes?

An efficient purchasing process is crucial for companies to reduce costs and increase competitiveness. While direct procurement, which involves the purchase of raw materials and products, is often in the limelight, too indirect purchasing special attention.

In the modern business world, procurement tools play a crucial role in designing an efficient and cost-effective procurement process. These softwares are innovative technologies and platforms that help companies optimize their procurement activities.

Various tasks shape the field of procurement logistics, including strategic supplier selection, order processing, implementation of e-procurement systems and optimization of the entire material flow. Particular attention is paid to a smooth process from receipt of order to physical acceptance of goods upon receipt of goods.

In this article, we will take a closer look at the definition, differentiation and examples of purchasing and procurement logistics in order to gain a better understanding of its significance and role in a corporate context.

By using digital platforms, companies can make more effective purchasing decisions and automate the entire procurement process. This results in increased efficiency, time and cost savings, and improved transparency and traceability of procurement activities.

E-procurement simplifies procurement through electronic systems. It offers cost savings, efficiency improvements, and improved transparency. Future trends include AI, big data, blockchain and sustainability in the procurement process.

Indirect procurement supports the company overall, as opposed to direct procurement of production materials. Effective strategies are aimed at cost optimization and long-term vendor relationships.

A digital B2B purchasing platform optimizes procurement processes, simplifies vendor management and offers a comprehensive product catalogue. The seamless integration with the ERP system enables efficient data transfer and automated order processing for maximum efficiency.

Long-term, strong purchaser-vendor relationships are crucial in order to be well positioned in any economic situation. This is exactly where B2B platforms can strengthen digital procurement. However, simple system does not communicate with the direct relationships between buyer and supplier, but acts as a neutral medium for their transactions and relationships with each other.

Germany does not have the reputation of being at the forefront of digitization worldwide. This is also underlined by the European Commission's eGovernment Benchmark 2022, in which Germany finished 21st out of 35 places. It is often established medium-sized companies that have difficulties modernizing traditional business processes. Isabelle Coudert, who heads supply chain management at WILKA Schliesstechnik, demonstrates, however, that digitizing purchasing can serve as a first step.

“The integration into our SAP ERP® took place in February 2017 and we were immediately impressed by the clear presentation of the procurement process in the simple system cockpit. Our approvers check individual processes there and then approve the orders. We save frequently used products in the favorites list and have them right at hand the next time you order. ”

“Thanks to the connection of our proven GARANT Tool24 dispensing machine to simple system, demand messages are now processed fully automatically until the goods are received. Thanks to the four-eye principle in combination with the release settings in simple system, we always maintain full control. More comfort is not possible. Both production and purchasing now have more time to take care of their essential tasks. ”

Wherever machines need to be kept running, maintaining departments ensure seamless support. To ensure that he is always ready to act, these departments — such as locksmiths or toolmaking — need a stock of recurring maintenance items.

Even in times of e-mail, chatbots and machine-2-machine communication, the principle “transactions are done between people” applies — at least in the B2B segment. Especially in medium-sized companies, business relationships are always personal relationships.

Process costs are not really perceived by many companies. In doing so, they can achieve disproportionate dimensions, especially when procuring C-parts. These mostly hidden costs can be avoided thanks to automated processes.

The conversion of the paper-based order request (BANF) to a digital process is sometimes perceived as a burden by the affected employees in the specialist departments. Familiar, cherished ways of working are omitted; instead, new, unknown processes must be learned.

The digitization of procurement using eProcurement systems provides an effective means of handling the purchase of C-parts and indirect requirements. With minimal workload on the part of the purchasing department, thus creating space for the strategically decisive procurement of A and B parts.

Procurement platforms often focus on C-parts and indirect procurement. But how do A, B and C parts actually differentiate themselves from one another? What challenges does the purchasing department face when it comes to procurement? And what does “indirect procurement” mean? Here is a disambiguation.

“The introduction of simple system not only gives us, as buyers, more time for strategically important tasks. The high degree of automation has significantly reduced the process costs for C-parts management at DUDOCO: The savings here amount to around 70,000 EUR per year. ”

“We quickly gained a lot of positive experiences with the digitization of indirect procurement,” reports Mr. Gutekunst, Head of Purchasing at Memminger-Iro. “But the different purchasing systems still complicated the process. We were therefore looking for a central platform that could be used to process the purchase of C-parts and indirect procurement. ”

“simple system strengthens the direct relationship between buyers and suppliers and at the same time supports digitization. Self-service allows us to act quickly and individually ourselves, so that customers have immediate access to the goods they are looking for, giving us an enormous market advantage.”

Hardly any company starts off on a greenfield basis. Standard eProcurement solutions cannot help with complex structures in business and purchasing. simple system creates procurement solutions tailored to the customer through individual customer service and advice.

Solutions instead of products: Michael Feierabend, sales manager at Office Mix GmbH, explains how Office Mix manages the balancing act between C-articles and individual goods.

“For RS Components, simple system is a strategic partner that helps us to be on the winning side in the current trend to consolidate supplier relationships. The ease of use and excellent technical support and support in cooperation with the supplier result in significant synergies for the benefit of the joint customer base. ”

Long-term strong buyer-supplier relationships are crucial in order to be well positioned in any economic situation. This is exactly where B2B platforms can strengthen digital procurement. However, simple system does not communicate with the direct relationships between buyer and supplier, but acts as a neutral medium for their transactions and relationships with each other.

“simple system impressed with simple approaches, which were tailored to our company. Our demands to optimize procurement processes while reducing process costs were met shortly after implementation. Purchasing is relieved by procuring C-items and has free resources available for the actual core business. ”

“Due to the simple integration into the system landscape, the introduction of simple system was implemented very quickly at SIG. The extremely wide variety of vendors impresses our purchasing department and users alike. Even complex local service processes such as maintenance and painting work are standardized and handled efficiently.”

“We now use a simple system to buy not only the piece of paper, but also the pens, the chair, and everything else the employee needs. Including the grinding wheel, the cutter knife or the gloves in the workshop,” says Al-Sahwi.