After having gone through any number of managers' in-boxes for approval signatures, the materials request form was converted into a purchase order. As a result, we were forgoing a lot of opportunities to take advantage of terms and conditions from suppliers. The purchasing application resides on a Windows NT-based server, the ORM software is on a Sun Solaris server and an online transactional database is on a Sun Solaris workstation. Prior to automation, a request form would make its way around the office for signatures over the course of weeks. When all authorizations have been obtained, the system launches a purchase order to the supplier.
Users can track the status of their requisition from their desktops.
Automating the purchasing process achieves more than a reduction in delays. By spending less time processing paper, Guerra reports that AMD's purchasing pros can revamp their roles and become what he calls commodity managers. They will team up with the people who make the purchasing decisions for a group of products, like copiers or office supplies. The team will then create a supplier evaluation checklist, taking into account such factors as cost of ownership, service level and quality. Eventually, says Guerra, AMD plans to roll out Web-based purchasing to 4,000 desktops.