eProcurement for services

eProcurement solution for services and framework agreements

Article description, quantity and price are the essential data of every order. Service and framework contracts are therefore a special case. DIG meets the requirements in this regard with various features: A concrete order reference is created for the service call-off, a solution is found for the cost-dependent approval process, and a transparent overview of existing framework agreements in the company is provided.

In order to map fixed-term and open-ended continuing obligations in the best possible way, DIG has created its own free-text mask for e-procurement with specific additional input fields: Thus, in addition to the usual free-text entries, information on the term (fixed-term or indefinite), the unit of measure (month, quarter, year or individual) and the notice period can be specified. In this way, all conceivable framework and service agreements can be presented in detail - from external electricians to maintenance services to painters.

Free text mask or catalog

In addition to the above-mentioned display of the master agreements in a free text mask, these can also be created as an internal catalog and made available to the requesters. In this case, a separate catalog can be created for each supplier or the suppliers can be created at item level in the multi-supplier catalog. If desired, information on the framework agreement can also be viewed in the catalogs (e.g. the contract number). Via an interface, framework agreements are also automatically transferred from the ERP system as a catalog to the platform. In any case, the search for services is carried out as usual.

Term (indefinite/temporary), start date, and end date, for example, are mandatory supplemental information for requesting services via the free text form.

Cost calculation for the order approval

An essential question in the initialization of the approval process is the calculation of the order value. While fixed-term contracts can simply be assumed to have costs over the entire term, the valuation of open-ended contracts requires certain rules that are individually designed depending on the internal order of authority. Units of measure and termination options are taken into account in the determination, thus producing a cost calculation that complies with the company's valuation rules.

How to get started with service ordering via eProcurement?

We would be happy to tell you more - take advantage of an appointment to talk about service procurement via eProcurement!

Fictitious initial order for invoice reference

Since the service call-off is technically not a purchase order, a workaround was defined for the transport company Gebrüder Weiss, for example, in order to set the incoming invoices in a purchase order reference: A fictitious initial purchase order is transferred to the ERP system (in the example: SAP), which is shown with a value of € 0.01 (because SAP does not allow a purchase order value of 0.-). The incoming invoices are then posted to this purchase order, thus making the expenses recordable at the respective point in time.

How eProcurement for services is proving itself in practice?

EGGER, the world's leading manufacturer of wood-based materials, is leading the way and even uses its eProcurement system for controlling construction projects.