Disparate procurement tools make it extremely difficult for any business owner to initiate a system’s entire digital transformation. Be it an ERP software coupled with a procurement module or a standalone, these procurement tools can neither commence efficient procurement operations nor bring in business agility. On the other hand, using automated procurement software can be a flexible option for every organization. The procurement consultants who use e-procurement software can meet every policy requirement of the business is other related sections within.
E-procurement solutions have many benefits. Read on to know them.
Break Down the Data Silos
Several stakeholders are generally involved in the procurement process, including vendors, procurement leaders, requisitioners, finance teams, inventory managers, and many more. Data silos and various disparate systems have a strong impact on the procurement process’s quality, causing an absence of disconnect and transparency. These factors result in many missed opportunities, maverick spending, and lengthy procurement cycles.
However, the e-procurement solution’s involvement causes every transaction, critical collaboration, and communication to stay within a particular interface concerning purchasing data. An e-procurement solution used by procurement consultants ensures that they streamline the various procurement processes from sourcing to payment and simplify several data in the purchasing management system.
Speed Up the Under-performing Suppliers
Procuring a product or service requires the involvement of several sections and people. Most often, it becomes difficult for procurement consultants to monitor every area individually. Sometimes they miss out to manually check the supplier performance. Manual evaluation of the suppliers and infrequent feedback from the suppliers puts on a significant amount of stress and burden on the purchasing department. This causes the department employees to maintain a considerable amount of data at once instead of receiving regular feedback.
Failing to note the supplier’s poor performance can end up leaving a bad effect on the business. With the help of e-procurement solutions, procurement leaders can conveniently assess the stores, collect and display up-to-date information to the purchasing department about products, vendors, and vendor performance. This allows the business owners to properly analyze the data to redeem better insights, negotiate profitable deals, identify the buying risks, and spot several opportunities.
Steer Clear of Duplicate Payments and Invoice Delays
Matching the invoice with their related documents is considered one of the toughest validations in the procure-to-pay cycle. The various terms are declared on the invoice and the pricing details must match the data stated in the purchase order receipt note. In addition to these there, other portions must also match with the service order note. These include the quantities of line-item, per-unit pricing, and product description.
A three-way matching process done manually can perform all the tasks mentioned above, but the time required, and accuracy remain in question. All these aspects for the validation can be effectively reduced with the introduction of an e-procurement solution. This automated solution technology used by procurement consultants performs as a key component to prevent maverick spending and enforce compliance.
Eliminate Dark Purchasing
Dark purchasing prevails when the owners use disparate tools and outdated technologies to manage the procurement process. Stakeholders usually lose control of the procurement process by handling them manually, and they have no clue about the ongoing procedures. This results in additional spends running up outside the estimated practices like redundant purchase, dealing with unapproved vendors, etc.
Somebody can address a huge array of procurement risks by using e-procurement solutions. With this technology, stakeholders can monitor every level of the supplier tier that enables them to prevent a range of disruptions even before they can occur. This ultimately allows the owners to embark on a journey to transparency by purchasing off-contract, eliminating maverick spending, and canceling unused services with quality suppliers.
Empower Suppliers with Drive-thru
Traditionally, the procurement consultants used to manage the supplier’s data manually. Back then, vendors had to personally visit the procurement department for every small clarification, resulting in the wastage of time and money. An e-procurement solution that uses the vendor portal allows the suppliers to gain insights into the payment status. This makes their life easier as they gain greater control over the communication itself.
Such an automated process like the vendor portal empowers suppliers to manage product catalogs, monitor the purchase orders, raise an invoice, update shipping data, and manage various payments. With accurate and continuous payment procedures, the supplier-vendor relationship can also get a lot stronger.
Strategize with Insight, Not Instinct
Segregation tools like chat threads, emails, and spreadsheets fail to offer transparency into the purchasing procedure. These tools dismantle data and do not allow the decision-makers to receive information like stock levels, deviations, confirmation, status, and various other purchases that offer insights.
Automated procurement tools allow purchasers to organize every detail of the past data with ready-to-use visual reports. This, in turn, allows business owners to manage and automate purchases, vendors, and contracts.
The automated procurement process paves the way for digital success in organizations. Procurement consultants can benefit from this system. They can use these benefits to achieve results and gain unique business needs.