Procurement Management System Definition
A procurement management system (PMS) is a software application or web-based system used by organizations to streamline and automate the process of procuring goods and services. The system typically includes modules for vendor management, contract management, purchase order (PO) management, and invoicing.
PMS systems are designed to help organizations manage the entire procure-to-pay (P2P) process from start to finish. By automating key steps in the process, such as creating and issuing POs, receiving goods and services, and generating invoices, PMS systems can help reduce costs and improve efficiency. In addition, PMS systems can provide visibility into spending patterns and help organizations track vendors and contracts.
While there are many different types of PMS systems on the market, they all share some common features, such as:
Vendor Management: A vendor management module helps organizations keep track of vendors and supplier contracts. The module may include features such as a vendor database, contract management tools, and spend analysis capabilities.
Contract Management: A contract management module helps organizations manage the lifecycle of their contracts with vendors, from creating and signing contracts to tracking performance and renewing agreements. The module may include features such as contract templates, e-signature capabilities, and performance tracking tools.
Purchase Order Management: A purchase order (PO) management module helps organizations streamline the process of creating and issuing POs.
