Webinar: Unpacking Procurement Tools in IFS Cloud

Procurement is a critical business function for most IFS customers, yet many organisations only use a fraction of the functionality available within IFS Cloud. While many businesses still focus on purchase requisitions, purchase orders and approvals, IFS has significantly expanded the procurement toolkit in recent releases.

The webinar showcased several enhancements designed to help procurement teams:

• Improve supplier onboarding and qualification
• Simplify sourcing and RFQ processes
• Enable employee self-service purchasing
• Introduce greater automation and AI
• Improve supplier invoice processing
• Streamline returns-to-supplier processes
• Strengthen supplier compliance management

Why Revisit Procurement in IFS Cloud?

Many organisations still rely on spreadsheets, email chains and manual processes for key procurement activities. Common challenges include:

• Managing new supplier requests via spreadsheets
• Losing supplier quotation history in email inboxes
• High volumes of incorrect purchase requisitions
• Manual supplier chasing and order confirmations
• Time-consuming invoice processing
• Complex supplier return procedures
• Difficulty tracking supplier compliance

IFS Cloud now provides functionality to address many of these challenges directly within the ERP platform.

Key Areas Covered

The session focused on six main areas:

1. Supplier Request Management
2. Request for Quotation (RFQ) Enhancements
3. Employee Self-Service Procurement
4. Procurement Automation and AI
5. OCR Invoice Processing
6. Returns and Supplier Compliance Management

Supplier Request Management

One of the most significant procurement enhancements in IFS Cloud is the introduction of a structured supplier request process.

Traditionally, supplier onboarding has often relied on Word documents, spreadsheets and email discussions. This makes it difficult to track supplier qualification activities and maintain visibility of supplier evaluations.

Key Features

Employees can submit supplier requests directly within IFS Cloud by providing information such as:

• Company details
• Location
• Business type
• Contact information
• Supporting documentation
• Compliance information

Procurement teams can then:

• Review supplier requests
• Track supplier qualification activities
• Convert requests into prospect suppliers
• Maintain visibility of approved and rejected suppliers
• Manage supporting documentation centrally

Benefits

• Eliminates spreadsheet-based supplier onboarding
• Creates an auditable supplier approval process
• Increases visibility of supplier qualification activities
• Supports supplier diversification initiatives
• Provides a clear pipeline of potential suppliers

Request for Quotation (RFQ) Enhancements

Many organisations have historically avoided the RFQ process within ERP systems because of the effort involved in supplier selection, quotation management and data entry.

IFS Cloud introduces several improvements to make RFQs more practical and efficient.

Improved Supplier Selection

Procurement teams can now filter suppliers based on criteria such as:

• Quality approval
• Environmental approval
• Sustainability credentials
• Credit approval
• Currency
• Supplier qualifications

This makes it easier to identify suitable suppliers for sourcing exercises.

Prospect Suppliers in RFQs

Users can quickly create and include prospect suppliers directly within an RFQ process, helping organisations explore alternative supply options without first completing a full supplier setup process.

Submission Requirements

RFQs can include mandatory requirements such as:

• ISO certifications
• Quality standards
• Drawings and technical documentation
• Product-specific compliance criteria

These requirements become part of the formal RFQ package.

AI-Assisted Quote Capture

IFS Cloud can use machine learning to scan supplier quotation documents and automatically populate quotation details, reducing manual data entry and speeding up evaluation.

Employee Self-Service Procurement

A common challenge for procurement teams is managing poorly completed purchase requisitions and helping employees identify the correct items to purchase.

IFS Cloud addresses this through an enhanced self-service procurement portal.

How It Works

Employees are presented with a catalogue-style shopping experience, similar to a consumer e-commerce platform.

Users can:

• Browse approved items
• Add products to a shopping cart
• Request equipment and consumables
• Submit multiple items through a single request
• Create purchase requisitions automatically

Typical catalogue items may include:

• Laptops
• PPE
• Office furniture
• Home-working equipment
• General office supplies

Benefits

• Reduces procurement errors
• Minimises free-text requisitions
• Improves user adoption
• Simplifies purchasing for occasional users
• Ensures employees request approved products

Procurement Automation and AI

The webinar highlighted growing opportunities for automation within procurement, particularly through IFS.ai and IFS.ai’s agentic AI capabilities.

Existing Automation Opportunities

Many organisations are already able to automate:

• Purchase requisition releases
• Purchase order creation
• Purchase order release
• Supplier order transmission
• Purchase order confirmation reminders

These features are often underutilised despite being available within IFS Cloud today.

IFS.ai and IFS.ai Loops

IFS.ai Loops introduces digital workers capable of handling repetitive supplier communication tasks.

Potential activities include:

• Monitoring procurement inboxes
• Reading supplier emails
• Reviewing order confirmations
• Recommending delivery date changes
• Updating purchase order information
• Escalating exceptions for approval

The goal is to allow procurement professionals to focus on strategic supplier relationships rather than administrative activities.

OCR Invoice Processing

Supplier invoice automation was another major focus area.

Historically, many businesses have considered OCR solutions but found third-party products too expensive or difficult to justify. IFS Cloud now includes built-in OCR invoice processing capabilities through the IFS.ai functionality.

Key Features

The solution can:

• Monitor invoice inboxes
• Upload and process PDF invoices
• Extract invoice information automatically
• Identify invoice numbers and dates
• Create supplier invoice records
• Generate posting proposals for finance review

Users can process multiple invoices in a single batch and review suggested data before final submission.

Benefits

• Reduces manual data entry
• Speeds up invoice processing
• Improves efficiency for finance teams
• Delivers OCR functionality without additional specialist software

Returns to Supplier

The return-to-supplier process has also been significantly improved.

Previously, returning products could involve multiple disconnected processes between procurement and warehouse teams. IFS Cloud now aligns supplier returns with the broader shipment management framework.

New Approach

When goods fail inspection:

• A supplier return is created
• Inventory is reserved automatically
• A supplier shipment is generated
• Warehouse teams manage fulfilment through standard shipment processes

The process uses the same shipment management capabilities already utilised for:

• Customer deliveries
• Site transfers
• Shipment orders
• Project deliveries

Benefits

• Standardises outbound logistics processes
• Improves warehouse visibility
• Supports handheld warehouse devices
• Simplifies return execution
• Reduces manual intervention by procurement teams

Supplier Compliance and Quality Management

As a bonus topic, the webinar also covered Quality System Levels (QSLs) and supplier compliance controls.

This functionality helps organisations operating within regulated industries manage approved suppliers and ensure procurement processes align with compliance requirements.

Capabilities Include

• Supplier qualification management
• Product-specific compliance requirements
• Audit management
• Supplier approval tracking
• Automatic authorisation workflows
• Compliance expiry monitoring

For example, organisations can require suppliers to hold specific certifications before procurement can proceed. If compliance expires, IFS can automatically enforce additional approvals.

Suitable Industries

Particularly valuable for:

• Manufacturing
• Food & Beverage
• Life Sciences
• Chemicals
• Electronics
• Highly regulated sectors

Key Takeaways

Procurement Capabilities Have Expanded Significantly

IFS Cloud procurement is no longer limited to purchase orders and requisitions. There are now comprehensive tools supporting sourcing, supplier management, compliance and automation.

Supplier Management Has Matured

The new supplier request process provides a structured, auditable alternative to spreadsheets and email-based onboarding.

RFQs Are Easier to Use

Improved supplier selection, prospect supplier management and AI-assisted quotation processing make RFQs far more practical than in earlier versions of IFS.

Self-Service Improves User Experience

The procurement catalogue delivers a familiar shopping experience that improves adoption and reduces procurement errors.

Automation Delivers Immediate Benefits

From automatic order processing to OCR invoice capture and AI-powered supplier communications, organisations can reduce administrative effort without major system changes.

Compliance and Quality Remain Critical

Enhanced supplier qualification, audit management and compliance controls help organisations maintain governance while improving procurement agility.

Many Customers Are Not Using Everything They Already Own

A recurring theme throughout the webinar was that many organisations already have access to these capabilities within IFS Cloud but may be unaware of the functionality available to them. Unlocking this value often requires configuration, adoption and awareness rather than additional software investment.