By Lena Wagner on October 03 2018 12:18:23
Usually, this exercise takes place during an e-procurement project as part of the analysis phase, but can be done at any time. As long as there is a resource who has the proper skills and knows how to draw a flowchart to help the various departments identify their current procedures and potential problem areas within the purchase order approval process.
In addition to diagramming techniques, engineers and architects have found it useful to develop models and prototypes to evaluate the overall physical aspects of their design. These are useful but let us not forget they are all ultimately based on a design of some kind (boxes and lines). From the models and prototypes, designs can be adjusted as required.
If your organization is looking for ways to reduce costs, the purchase order chain is one area that can be made more efficient. If the purchasing department learns how to draw a flowchart depicting the as is for each department, the overall effort could help reduce costs by eliminating redundant approval processes and mistakes.
Creating purchase requisitions is a standard function in every business. Unfortunately, the manual paper purchase order or requisition is one of the most frustrating areas of every business because the constant approval issues and long turnaround times that can occur.
Once the team recognizes the problem areas, they can easily adjust the map to a future state version that can dramatically affect performance and turnaround time of the purchase order process.
A flowchart could be defined as a pictorial representation of a process in which the steps are symbolized by shapes - in other words a diagram that explains the steps in a procedure. Each shape should link to its neighbour by a connector line, and often these have arrow heads to describe the direction of flow.