Key Advantages of an Integrated Procurement and Inventory Management Solution

Posted by: Ryan - Head of Logistics Suite at Amici

Integrating your Procurement and Inventory Management systems offers significant advantages over using separate, discrete systems.

This first diagram (Fig. 1) illustrates the simple nature of the automated flow that can be achieved through integration. Users of an integrated platform can be assured that automated orders will ensure you always have minimum levels of stock.

Essentially, the stock replenishment process is seamless, without the need for complicated manual intervention.

Key Advantages of an Integrated Procurement and Inventory Solution

Fig. 1


The second diagram (Fig. 2) illustrates the rather more complex process when Procurement interfaces with a discrete 3rd party system for Inventory Management. In this case, a trigger results in a Manual Order as opposed to Auto Reorder.  Delivery of product generating a Receive Order, then requires a cumbersome manual process to allow Inventory Check-In.


Key Advantages of an Integrated Procurement and Inventory Solution

Fig. 2


The advantages of using an integrated solution are:

  • A seamless transition between placing a Purchase Order, Receiving Goods, Booking in, using Inventory, placing a Purchase Order to replace depleted stock.
  • An automated reorder feature allows the system to respond in a timely manner and triggers a repeat order when minimum stock is reached. As one integrated system, the benefits of the Inventory Management tools are maximised;
    • Visibility of live inventory across all locations.
    • Benefits of labelling, including barcodes, for all materials.
    • Creation of Bills of Materials (BOMs) for any process or test.
    • Receiving Pick Lists for planned work.
    • Receiving reports with information on the valuation and tracking of all transactions.


The alternative approach of using separate, discrete systems results in:

  • Labour intensive processes.
  • Manually placing your purchase orders to replace depleted stock.
  • Recording deliveries by manually pulling Goods Receipt information and manually adding this to a third-party Inventory Management system.
  • Increased stock variance due to manual transactions between systems.
  • Lack of confidence in stock availability.
  • Increasing the requirement for manual stock checks.

Find out more about our Inventory Management Solution here.