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Stay Profitable with SAP Business One’s Purchasing Module

SAP Business One

When considering who is responsible for bringing in and retaining customers, the marketing and sales departments come to mind. Rarely is this considered the province of the purchasing department. While purchasing isn’t directly engaged in this activity, the costs of the items they procure are reflected in the prices the customer sees. Since price is a big factor in the customer’s buying decision, especially for the first-time customer, businesses must get product pricing right.

Consistent and timely customer fulfilment turns first time buyers into repeat customers. This isn’t possible without the efforts of the purchasing department to keep product inventory levels low yet sufficient to handle customer demand. The purchaser’s job requires finding suppliers with the best deals in terms of price and payment terms. The suppliers must also be stable businesses, be reliable, and have reasonable lead times. The purchaser must actively look for suppliers that meet these requirements, and develop good working relationships and collaborate with those that do.

In addition to the above requirements, the purchasing department can’t operate effectively without seamless coordination with other company departments such as marketing, sales, accounting, finance, shipping, receiving, and warehousing. By now it should be evident that the purchaser’s job is challenging and affects customer acquisition and retention.

The SAP Business One Purchasing Module

The SAP Business One Purchasing Module provides the tools a purchaser needs to meet the demands and challenges of their job. Since it’s a module of SAP Business One, it seamlessly works with the other SAP Business One modules commonly used in a business such as accounting, business partner management, sales and distribution, customer relationship management, and warehouse management.

The SAP Business One Purchasing Module lets you efficiently issue purchase orders to your suppliers, and get quotes from multiple suppliers in order to quickly select best offers. Should you need to, the purchasing module allows you to reverse a purchasing action and either make a partial or full return of a shipment.

If you have overseas suppliers, the SAP Business One Purchasing Module calculates the additional associated costs (landed costs). These include customs, shipping, insurance fees, and taxes.

For more information about the purchasing and other available modules, or about SAP Business One as a whole, contact us today.

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