Analysis of software products and the study of automation of processes in the field of monitoring purchases and goods.

Perelygin Ivan Student, Department of Industrial Programming, MIREA - Russian Technological University 78 Prospekt Vernadskogo str., Moscow, 119454, Russia, Moscow region iv_perelygin@mail.ru

1 DESCRIPTION OF ERM SYSTEMS

1.1 Comindware – procurement management system

The system was developed based on the experience gained in the implementation of many procurement automation projects. It is particularly effective for import substitution programs in the oil and gas industry. Comindware not only replaces the functionality of solutions based on Oracle and SAP, but also provides full control over the procurement process, from planning to execution.

Comindware offers a comprehensive approach to automating the procurement process. It can be successfully applied in import substitution programs in the oil and gas industry. Due to its functionality, the system replaces solutions based on Oracle and SAP, and provides full control and management of various procurement processes.

The system automates 5 main stages of the procurement process – planning, procurement preparation, procurement execution, contracting and delivery. It promotes efficient and transparent management of all stages of the procurement process.

In addition, Comindware provides controlled access to all related information such as nomenclature directories, vendor registries, contracts, task statuses, and applications. This allows users to quickly and conveniently receive the necessary information and perform the required actions.

The stated time frame for the implementation of the system varies from 2 to 7 days, which allows you to quickly deploy the system and take advantage of its advantages. In addition, the system can be continuously improved using low-code development tools inherited from the Comindware application platform. This allows you to gradually scale the system and implement it into the business processes of other organizations ^[1].

Comindware has many advantages that make it an attractive solution for companies. Some of them include:

- procurement management throughout the entire cycle from planning to delivery;

- high level of transparency of the process;

- rapid deployment of the system;

- low cost of setup and maintenance;

- advanced task management features;

- thorough contractor qualification process;

- a ready-made supplier portal for collecting offers and conducting closed tenders;

- preparation of lots for uploading to electronic trading platforms;

- support for the work of the tender committee;

- support for a full cycle of electronic document management (EDI).

Comindware's procurement management system uses a set of sophisticated algorithms to optimize and improve the procurement process. These algorithms are key to several basic system functions ^[2]:

1. Supplier evaluation algorithms: The system uses multi-criteria decision-making (MCPR) algorithms to evaluate suppliers. These can be analytical hierarchy algorithms (AI) or weighted evaluation models (MBO), where various factors such as price, quality, delivery time and past results are weighted according to their importance;

2. Procurement Planning Optimization Algorithms: Comindware can use linear programming (LP) to optimize procurement planning, minimizing costs while meeting procurement needs;

3. Data enrichment and validation algorithms: To enrich the data, the system can use fuzzy matching algorithms to link and combine data likely related to the same objects in different datasets;

4. Collaborative filtering for supplier selection: The system can use collaborative filtering techniques similar to those used in recommendation systems to suggest suppliers based on purchase history and preferences for similar procurement tasks.

Additional functions ^[3]:

1. Dynamic reporting: The system provides the ability to create dynamic and adaptive reports, allowing users to generate customized reports using various data. For example, you can use SQL-like queries to extract data in real time, or use business intelligence tools to visualize trends.;

2. Role-based Access Control (RBAC): This ensures that users only have access to the information and functionality necessary to fulfill their roles, improving security and operational efficiency.;

3. Integration capabilities: Comindware can be integrated with existing enterprise management systems (ERP) using APIs or web services to ensure continuity of data flow and maintain data integrity between platforms.

Advantages of automation ^[4]:

The procurement process, that is, the process of collecting materials and resources, is one of the most important parts of any business. This allows you to provide your customers or customers with timely and reliable service. Automated processes make the whole process more efficient and orderly. The software, which provides a dashboard for all interested employees, allows all parties to see at what stage the contract approval is at. They can gain important information about processes and use this information for strategic planning and business goals in the future.

Transparency is of great importance in any business today. You need to be able to document the entire contract or purchase process. Using the toolbar, you can see at what stage the contract is located and on whose table it lies. This allows you to know who to contact if you need to speed up the process.

Transparency not only helps guide the approval process and speeds it up. It also allows for auditing. Most processes have room for improvement, and being able to track a contract from start to approval can give you an idea of where you can improve efficiency and reliability.

Many software packages have drag-and-drop functions that make the entire process visual and allow parties to see how the approval process works. A visual representation of the process gives all stakeholders the opportunity to see how each step works. This makes it easier to understand what stage of approval a given contract is at. It can also give administrators and others ideas on how to improve efficiency and reduce the time it takes to approve procurement contracts.

By implementing these sophisticated algorithmic approaches, Comindware procurement management can automate complex procurement tasks, thereby reducing manual work, increasing accuracy, and ensuring data-driven procurement decisions and their alignment with organizational goals.

1.2 AGORA – procurement automation platform

In a fast-paced digital world, effective procurement systems are an integral part of business success. AGORA acts as a leading player in this field, striving to simplify and improve the procurement process.

AGORA is an advanced procurement automation platform designed to improve the way business procurement processes are handled. With over 200 modular functions, it promises a solution for almost 90 percent of procurement-related tasks. Interestingly, the flexibility of the platform is manifested in its development cycle: from an MVP (minimum viable product) lasting only 2 weeks to a more complete cycle of 2 months ^[5].

In addition, AGORA is not just about automating purchases. It is a universal platform on which businesses can create both a reliable procurement management system and an entire electronic trading platform.

Advantages of A GORA ^[6]:

1. Customized automation solutions: Each business has unique needs. Recognizing this, AGORA provides tools for the development of customized solutions, providing the opportunity to fine-tune the procurement system to suit your needs;

2. Creating an electronic trading platform: AGORA stands out because it is one of the few products on the market that allows you to create personalized electronic trading platforms (ETP);

3. Quality and contractor management: Ensuring the reliability of contractors is essential. AGORA's specialized modules help businesses manage quality and even evaluate their contractors, ensuring transparency and trust.;

4. Diverse supplier selection: With AGORA, businesses can optimize the supplier selection process by categorizing them according to different types of trading procedures, thereby ensuring the best fit for specific needs;

5. Corporate Procurement website: Businesses can improve their procurement processes by integrating them into a corporate procurement website, which can be implemented within the framework of the AGORA platform.

The structural and algorithmic basis of A GORA:

1. Modular architecture: The architecture of AGORA is modular, that is, it consists of separate interchangeable components or modules that can be individually customized or replaced. This design allows extensive customization to meet specific business needs and facilitates upgrades and maintenance.;

2. Data Flow and Business process integration: AGORA's design is based on a flawless data flow architecture integrated with business processes. This integration ensures the systematic collection, processing and transmission of data through each module, ensuring a smooth transition from one business process to another;

3. Algorithmic strategies to improve procurement: AGORA uses a number of algorithmic strategies to automate and optimize procurement tasks. This may include:

- Predictive analytics: using historical data to predict future procurement needs and trends;

- Heuristic algorithms: For decision-making processes such as supplier selection, heuristic algorithms can be applied to quickly find satisfactory solutions in cases where an exhaustive search is not possible;

- Constraint-based optimization: For planning and allocating resources in procurement tasks, ensuring that all constraints are met when optimizing for cost or efficiency.

4. Development of electronic trading platforms (ETP): The AGORA framework is designed to support the creation of electronic trading platforms, offering not only procurement management, but also the ability to launch their own trading platforms by businesses. A data exchange standard such as EDIFACT or XML can be used to exchange documents and simplify transactions.

Business process integration and data management ^[7]:

AGORA integrates with various business processes such as supplier management, contract management and procurement operations. The system is designed for effective data management and provides the following features:

- Real-time data synchronization between modules;

- automated data verification to ensure the integrity of information;

- Secure data transfer protocols to maintain confidentiality and compliance with regulations.

The studied advantages ^[7]:

1. Custom procurement solutions: With a modular approach, AGORA offers businesses the flexibility to customize their procurement system to their unique processes and work procedures;

2. Quality management: The platform includes quality management functionality that helps maintain high standards throughout the procurement cycle;

3. Supplier Management and Diversity: AGORA's supplier management capabilities provide a comprehensive approach to managing supplier relationships, encouraging diversity, and optimizing supplier selection.

Critical assessment:

1. The complexity of modularity: While the modular approach provides flexibility, it also introduces complexity in initial setup and customization to specific requirements, requiring more time and resources;

2. Supplier verification: The existing agora structure may require additional improvements for full-fledged supplier verification processes, which is an important aspect of procurement integrity.

The absence of quoted prices on the AGORA website indicates an individual pricing model, probably depending on the specific modules and functionality chosen by the business. The lack of low-code support indicates possible additional development and implementation costs, as specialized technical personnel may be required to configure and maintain the system.

1.3 Naumen SRM/GPMS software

Developed by a well-known Russian company, the Naumen SRM/GPMS system has been carefully designed to solve a wide range of tasks related to procurement activities. This extensive complex covers the full life cycle of procurement, starting from the initial phase of collecting applications and ending with the detailed nuances of order management, bidding and ensuring registration and compliance with contracts.

Main functions and advantages of Naumen SRM/GPMS ^[8]:

1. Comprehensive complaint handling: The program not only allows users to register complaints, but also maintains a systematic registry for inspections. This ensures that all complaints are dealt with in a timely manner and that there is a transparent audit for inspections;

2. Effective budget management: the system implements a reliable mechanism for managing budget constraints, ensuring that expenditures meet organizational limits and priorities;

3. Automation at the highest level: one of the main features is the automatic generation of orders along with the necessary documentation. This reduces manual work, minimizes errors and speeds up the procurement process.;

4. Detailed contract registry: each contract entered into the system can be monitored for changes or additions. This not only guarantees the fulfillment of all contractual obligations, but also provides full transparency to interested parties.

The exact price regarding the purchase of the system for personal or commercial use is not indicated on the official website of the developer, however, it is worth noting that the program may require configuration, especially for private enterprises. Such settings may affect the total cost. Potential users, especially from the private sector, should consider pricing aspects with flexibility, taking into account the potential additional costs associated with configuring the system to meet specific needs.

Naumen SRM/GPMS software is a sophisticated solution from a leading Russian developer aimed at optimizing procurement processes for organizations. This system is built to effectively manage the entire procurement lifecycle and especially meets the requirements of public procurement.

System structure and data flow of N aumen SRM/GPMS ^[9]:

1. Centralized database: Naumen SRM/GPMS is based on a centralized database that stores all procurement-related data. This ensures consistency of information and easy access to it from different modules of the system;

2. Automated Workflow Engine: The program uses an automated workflow engine that manages procurement operations from initiation to completion. This mechanism is responsible for launching actions, sending notifications, and managing the flow of data throughout the procurement process.;

3. Integration capabilities: Naumen SRM/GPMS is designed to integrate with other systems such as financial and warehouse software. This integration facilitates data exchange and optimizes procurement processes in various business functions.

Business processes in Naumen SRM/GPMS ^[10]:

1. Complaints and inspections management: The system has a separate process for processing complaints, registering them and managing subsequent inspections. This process ensures accountability and transparency in procurement activities;

2. Budget control and financial planning: Includes financial controls that help manage and control procurement budgets, ensuring that expenditures comply with the policies and constraints of the organization;

3. Order Management: The order management process is automated to efficiently create orders and related documentation. This helps to reduce manual loads and increase the speed and accuracy of procurement operations;

4. Contract Management and Compliance: There is a detailed contract management process that monitors contract statuses, changes and compliance, providing stakeholders with a transparent view of all contractual obligations.

Naumen SRM/GPMS algorithms and functionality ^[10]:

1. Complaint Registry algorithm: The software uses an algorithm to categorize, prioritize and route complaints to the appropriate staff, ensuring their timely resolution;

2. Budget optimization algorithm: For effective budget management, Naumen SRM/GPMS can use optimization algorithms that allocate resources based on predefined criteria and constraints;

3. Document generation algorithm: To automatically generate orders and documentation, the software probably uses a set of rule-based algorithms that extract data from a central database and apply business logic to create accurate documents.

The price of Naumen SRM/GPMS can vary significantly depending on the level of customization required to meet the specific needs of the organization, especially if it is necessary to adapt the standard orientation to public procurement for use in the private sector.

1.4 Norbit's – Effective procurement platform

Norbit's software represents a comprehensive and innovative approach to transforming procurement strategies in various organizational environments. Based on extensive experience and understanding, this software is designed to meet the complex needs of government agencies, state-owned enterprises and commercial organizations of various sizes.

Key features and advantages ^[11]:

1. Unified procurement system:

- Centralized platform: Norbit's software offers a centralized platform for all procurement activities, providing a standardized approach from supplier selection to contract completion;

- compliance with strategic goals: a unified system improves efficiency and aligns procurement activities in accordance with the strategic goals of the organization.

2. Smooth integration of procurement stages:

- Related phases: the solution focuses on a smooth connection between the various stages of procurement, such as attracting suppliers, negotiating and executing a contract;

- Error-free process: Integration provides a flexible and error-free procurement process.

3. Advanced set of optimization tools:

- Flexibility and adaptability: Norbit's provides users with tools designed to optimize purchasing activities, ensuring that the organization constantly receives the best value for its expenses;

- Strategic decision-making: A set of tools supports strategic decision-making in a dynamic purchasing landscape.

4. Flexibility to meet the needs of different sectors:

- Customized functionality: Norbit's software adapts to the subtle differences between public and private procurement, showing flexibility in its functionality;

- competence in various industries: it meets the diverse needs of commercial conglomerates and government agencies.

Pricing and implementation features:

1. Pricing Details: Although specific pricing details are not listed on the developer's website, potential customers should consider operational considerations;

2. Duration of implementation: the lack of support for tools for creating low-complexity code can increase the duration of implementation;

3. Total cost of ownership: Accounting for both direct costs (licensing) and indirect costs (implementation time, support) is important to fully understand the total cost of ownership.

For more in-depth research, potential customers can benefit from direct contact with Norbit's, study the case stage, and search for user reviews. In addition, researching industry reviews and analyses can provide valuable insights into software performance and its impact on procurement processes.

Advanced features and innovations ^[12]:

1. Decision-making based on artificial intelligence:

- Norbit's "Effective Procurement" integrates artificial intelligence (AI) to provide decision support. This includes predictive analysis to predict demand, supplier performance analysis, and operational metrics that enable organizations to make informed and strategic purchasing decisions.

2. Dynamic risk management:

- The software includes dynamic risk management tools that use real-time data and predictive modeling to identify and mitigate potential risks in the procurement process. This feature increases resilience and ensures active risk reduction.

3. Joint procurement workflows:

- Norbit's facilitates collaborative workflows by allowing collaboration between departments and functional areas in the procurement process. This provides an opportunity for input and consideration of procurement activities by stakeholders from various fields, promoting transparency and accountability.

4. Mobile accessibility:

- Given the importance of mobility, Norbit's software offers mobile accessibility, allowing users to carry out purchasing operations anywhere. This feature increases the flexibility and responsiveness of users, especially in a rapidly changing business environment.

Regulatory compliance and safety ^[13]:

1. Regulatory compliance modules:

- Norbit's solution includes compliance modules configured for various regulatory frameworks. This provides an opportunity for organizations to comply with specific procurement standards appropriate to their industry and geographical location.

2. Data security measures:

- Robust data security measures have been implemented to protect confidential procurement information. This includes encryption protocols, access control, and regular security updates to protect against possible cyber threats.

Norbit's conducts regular updates and improvements to ensure that the Effective Procurement program develops in accordance with the changing dynamics of the industry and technological advances. This commitment to innovation allows software to be a long-term solution to changing procurement needs.

The developer actively interacts with the user community, encouraging feedback and suggestions. This collaborative approach ensures continuous improvement and ensures that the software meets user expectations and industry trends.

1.5 About iTender SRM Software

The iTender SRM software, developed by the Russian company FogSoft, is the result of advanced programming and a deep understanding of the procurement field. It is a comprehensive platform based on a modular structure that offers specialized tools and functionality for managing various stages of the procurement cycle and developing relationships with suppliers. Proud of its domestic origin, iTender SRM has an impressive success story, with more than 70 successfully implemented projects in the countries of the Commonwealth of Independent States (CIS) ^[14].

The main features and advantages of iTender SRM ^[15]:

1. Proven track record of success: The importance of reliable experience in choosing enterprise software cannot be underestimated. iTender SRM stands out for its many successfully implemented projects, many of which serve leading corporations. This story not only confirms its reliability, but also its adaptability to various business needs.;

2. Advanced Supplier collaboration tools: Recognizing the important role of supplier relationships in procurement, iTender SRM is equipped with sophisticated tools. These features are aimed at simplifying the processes of communication, negotiation and cooperation with suppliers, ensuring a harmonious and productive partnership;

3. Dedication to increasing the return on investment: The philosophy of software is to increase the return on investment (ROI) in procurement activities. With its innovative features and strategic ideas, iTender SRM helps companies optimize their costs, resulting in improved profitability.;

4. Integration of internal ETP: a unique offer in the iTender SRM package is the ability to create and integrate an internal electronic trading platform (ETP). This allows companies to create a centralized digital marketplace for their purchasing activities, ensuring transparency, efficiency and control.

Advanced features and innovations ^[16]:

1. Modular platform for scalability:

- The modular iTender SRM platform allows you to achieve scalability, allowing organizations to customize the system to their procurement needs. This flexibility provides the opportunity to develop software with the business, given the increasing complexity and expansion of the supplier network.

2. Real-time analytics and reporting:

- The software includes reliable analytics and reporting tools, providing users with up-to-date information on procurement performance. This feature allows organizations to make data-driven decisions, identify areas for improvement, and optimize procurement strategies.

3. Automated workflow management:

- iTender SRM optimizes procurement processes with automated workflow management. This includes automated workflow coordination, assignment of tasks and notifications, which reduces the need to manually intervene and increases the efficiency of the process.

4. Supplier performance monitoring:

- The platform includes tools for monitoring and evaluating supplier performance. Key performance Indicators (KPIs) can be monitored to assess supplier reliability, compliance with delivery deadlines and overall compliance with contractual agreements, which contributes to strategic management of supplier relationships.

User experience and collaboration ^[15]:

1. Intuitive user interface and accessibility:

- iTender SRM pays attention to the user experience through an intuitive interface, which makes it convenient for both procurement professionals and other stakeholders. The availability of the system guarantees the effective use of its functions.

2. Shared workspaces:

- The software facilitates collaboration by providing separate workspaces for purchasing teams and suppliers. This collaborative environment promotes transparent communication, document sharing and joint decision-making, strengthening the relationship between buyer and supplier.

Compliance and safety measures ^[16]:

1. Tools for compliance with rules and regulations:

- iTender SRM integrates compliance tools to help organizations comply with regional and industry procurement regulations. This ensures that procurement activities are carried out within the legal framework, reducing the risks of compliance with regulations.

2. Data encryption and secure access controls:

- to ensure security, the platform uses reliable data encryption methods and secure access controls. This provides protection against unauthorized access to confidential procurement data and potential cyber threats, ensuring data integrity and confidentiality.

Future development and support ^[16]:

1. Constant software updates:

- FogSoft is committed to constantly updating the software so that iTender SRM remains technologically relevant and in line with the best practices in the industry. Continuous development reflects the desire to solve emerging problems and implement user feedback.

2. Comprehensive customer support:

- FogSoft provides comprehensive customer support services, including documentation, training resources and responsive support channels. This ensures an improved user experience and ensures that organizations can maximize the benefits of iTender SRM.

It is recommended to conduct in-depth evaluations, pilot implementations, and interaction with FogSoft support and development teams for organizations considering implementing iTender SRM. In addition, studying the case study and seeking feedback from current users can provide valuable information about the practical application of the software and its impact on procurement processes.

2 DEVELOPMENT OF AN IDEAL ERM SYSTEM

2.1 Disadvantages of current ERM systems

Disadvantages of Comindware:

Unfortunately, Comindware also has some drawbacks that should be considered when considering this solution. Some of them include:

- the delivery control process will require integration with accounting systems;

- integration with electronic trading platforms is under development.

Disadvantages of A GORA:

Although Agora offers many advantages, it is important to consider some of its limitations:

1. Modular system: AGORA does not offer a ready-made "turn on and work" solution. Instead, it provides a number of modules from which businesses must assemble their system. This modular approach, while flexible, may require more initial setup and configuration;

2. Supplier verification process: One of the difficulties of procurement is to ensure the reliability of suppliers. At the moment, AGORA does not have an established comprehensive process for this important stage, which may lead to the need to develop their own business verification methods.

Possible disadvantages of N aumen SRM/GPMS:

1. Focus on public procurement: Due to its concept, the program is strongly focused on meeting the needs of public procurement. As a result, some of its functions may seem superfluous or unnecessary for private enterprises;

2. Limited product catalog: The lack of a dedicated product catalog may be a disadvantage for some organizations. In addition, although budget management functions are provided, they may not be sufficient for some complex organizational needs.

Possible limitations of Norbit's:

1. Integration issues: A dedicated vendor portal, although strategically important, may cause integration problems for some organizations;

2. Limitations of auction flexibility: Exclusive reliance on external electronic trading platforms for auctions may limit flexibility for some businesses.

Possible problems with iTender SRM:

1. Dependence on the Microsoft ecosystem: The dependence of the platform on Microsoft components can be ambiguous. Although Microsoft's tools are globally recognized for their effectiveness and reliability, the geopolitical situation and potential sanctions against Russia may pose operational risks for companies relying on iTender SRM;

2. Financial considerations for iTender SRM: Although FogSoft remains reticent about the exact price on its official website, it is clear that the overall investment in iTender SRM will depend on the specific needs, scale and customization requirements of the project. Organizations considering adopting iTender SRM should communicate directly with the FogSoft team to conduct a comprehensive assessment and obtain a more accurate financial assessment.

Table 2.1 is presented below to compare the various disadvantages of procurement management systems.

Such a table can be used to better understand the advantages and disadvantages of each system and will help in deciding on the selection or development of an appropriate procurement management system.

Table 2.1 – Comparison of disadvantages of ERM systems

2.2 Requirements for the system under development

The procurement management system being developed should strive to ensure a complete procurement management cycle, starting from planning and ending with the execution of the contract. In order to minimize the disadvantages of current ERM systems, the future NW should include the following key functionality:

1. Integration with accounting systems: Ensuring smooth integration with various accounting systems for delivery control and financial accounting;

2. Electronic trading platforms: full support of electronic trading platforms in order to ensure maximum competition and efficiency in the procurement process;

3. Modularity with simple setup: A flexible modular system with a simple setup process to simplify the implementation and adaptation of the system to the specific needs of the enterprise;

4. Comprehensive supplier verification process: implementation of a comprehensive and automated supplier verification process to ensure the reliability and quality of the goods and services offered;

5. Focus on both public and private sectors: adapted functions to meet both the stringent requirements of public procurement and the business requirements of the private sector;

6. Advanced Catalog Management: Advanced product catalog management functionality to meet a variety of business requirements;

7. Reliability and flexibility of tenders: ensuring the reliability of the tender process with flexibility depending on the needs of the enterprise;

8. Security verification system: Implementation of a security verification system to protect confidential data and prevent unauthorized access.