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Chapter Summary 123

Demo 4.13: Reporting - standard analysis using the
purchasing information system

In contrast to standard analysis, fl exible analysis enables the user to defi ne the
content and format of the analysis. We explained in Chapter 2 that in fl exible
analysis, characteristics and key fi gures can be combined as needed. Figure 4-36
is an example of fl exible analysis using the purchasing information system.
The report in the fi gure is based on combining the characteristics of vendor,
material, and month with the key fi gures order value and number of items in
the order. Vendor and material are displayed in the rows, while the month,
order value, and number of order items are shown in the columns.

Figure 4-36: Flexible analysis

CHAPTER SUMMARY

The procurement process involves the activities required to purchase, receive,
and pay for the goods and services that an organization needs for its operations.
A company’s procurement process is typically optimized for both the types of
goods and services it purchases and the location and use of those goods by
other processes, such as manufacturing. Because the procurement process
involves signifi cant amounts of collaboration and commerce with suppliers, it
must be strategically linked with the manufacturing and material planning pro-
cesses to ensure that the proper amount of the correct materials are procured
at the right price for the right time. In addition, given the amount of money
that companies spend during the procurement process, many of the data and

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