Procurement Issues and Examples

System procurement is a structure designed to handle the procurement process, which

refers to the ability or action to obtain goods and services depending on the organization's
needs. With the existence of system procurement, organizations can purchase orders,
requisitions, process invoice, and approve goods and services, which benefit the organization
since they can plan ahead of their needs becoming thrifty and efficient, which is a profitable
result for them. Most procurement systems are bought as software with different functions
aligned to the organization's needs. Most of them are completed in the electronic system,
meaning there is less paperwork and increased workforce efficiency.

Using a system procurement within the organization is advantageous since instead of

multiple staff monitoring the processes, it can be handled within the devices managed by a
person, reducing the processing time, which means more investment for the organization.
Another advantage is that all purchases within the e-procurement are monitored and controlled,
wherein reports and analyses are generated, which can serve as a reference for greater
operational efficiency and less error within the process in the system.

But of course, just like a coin, it is two-sided, with one side being the advantage while
the other comes with the disadvantage. The e-procurement system could be better, but it has
flaws, such as purchasing poor quality systems for a lower-cost operation. Cost-saving is
essential within a company, but it should still be able to sustain the organization's needs without
the different sectors of the organization suffering. Another problem is needing to be more
transparent with the specifications and requirements when purchasing the e-procurement. Not
all procurement systems are the same; each design is fitted depending on the organization's
need, which is why it is essential to be transparent with the goals and conditions of your
organization to avoid shortcomings and unexpected errors just because the specifications and
requirements were not met. We also have a problem regarding contracts, where most need to
be formal, meaning there was no legal paper involved when both parties agreed on a specific
agenda. Forming an "official" contract is time-consuming and even costly for some because of
the different policies and fees that must be satisfied, but this is better because agreeing with a
non-formal contract could create more procurement problems for the organization in the future,
which is why a business should be done with official contract and agreement no matter how
small or big the company is. Lastly, accidental orders when purchasing supplies. If the
procurement system does not have a function that safeguards against mistakes, then fixing the
random order would be time-consuming. Those responsible for the e-procurement system
should maintain a good connection with the supplier and constantly follow up on activities to
ensure that the ordered supplier is in the right place.

Organizations would always encounter different procurement problems from time to

time, which is why investing in having the ability to countermeasures and improve performance
is the best way to avoid multiple problems from occurring within the system, which not only
makes the organization better but possibly saves the organization from falling apart if
procurement issues are not given attention and solved by the organization.