Still trying to manage procurement with spreadsheets or old document management solutions?
A better way exists.
eProcurement software is used to manage the purchasing/procurement of goods or services. It typically takes the form of a web-based solution, automating and digitising the complete end-to-end procurement process and offering real-time saving and compliance benefits to an organisation. This is especially true if you’re still trying to manage procurement with spreadsheets or old document management solutions.
The stats tell a story
The statistics around Procurement Management solutions are revealing. If you don’t get on board, you will be left behind.
A comprehensive study completed by Ardent Partners, CPO Rising 2018: The Age of Intelligence brought to light the following figures:
- CPO’s Top Strategies for 2018: 47% stated “Improve use of technology (buy new and/or improve current)”
- Next Level Performance: 53% said “Better data visibility and analytical capabilities”, while 71% stated “Ability to leverage spend data to identify sourcing opportunuities”
- Technology Adoption: 64% have adopted eProcurement
The study concluded in its “Strategies for Success” that Procurement Managers should amongst other things:
- Invest in technology to automate core processes
- Identify legacy platforms that can be enhanced or replaced
- Make technology adoption a priority and mandate its use
- Collaborate with IT to track new and emerging technologies
Benefits of eProcurement
The ultimate end-gain of eProcurement is greater efficiency and auditability
This is achieved by optimising resources, reducing waste caused by double handling of data and building a useful tool to manage and track the entire procurement journey.
Business Process AutomationBy automating and streamlining workflow, you:
– Decrease the number of manual tasks, reduce errors and save time
– Increase productivity and efficiency
– Standardise processes
– Reduce the procurement cycle time, i.e. quicker procurement-to-pay time
– Guarantee compliance
– Ensure greater efficiency with inventory management
– Improve payment management
– Store accessible, integrated files and achieve better document management
– Eliminate disconnected spreadsheets and old databases
– Many of the eProcurement solutions are cloud-based SaaS, giving instant access to data, globally
– A good Procurement Management solution will integrate with existing essential software applications, e.g. financial solutions
Visibility and Control
Procurement Management software increases visibility across the company. This results in:
– Greater controls on spending
– Improved tracking and monitoring
– Better management of indirect spending, such as travel
– Automated approvals to stop “Maverick buying”
– Version and addendum control
– Reduction of fraud, abuse and corruption
Compliance and Governance
With business automation in place, compliance can be built into the system by enforcing business rules and creating a transparent audit trail.
A system with secure servers and processes in place will result in reliable data security.
Electronic quotes and tenders
eProcurement offers a huge advantage when it comes to managing tenders and quotes. They can all be processed online and controlled electronically – submissions, approvals, pre-qualification, evaluation and more. This ensures the process is fairer whilst also greatly reducing labour time. Removing the ’emotions’ helps a procurement team to be more fact-based in their decision making.
Integrated reporting benefits
With integrated reporting and analysis, business leaders have a thorough understanding of the data presented and can therefore make informed strategic decisions. Detailed data measurement can help you build a better procurement plan, something that will affect the entire business down the line.
Improved supplier relationships
By using a Procurement Management solution, you can work in collaboration with suppliers in a win-win relationship. Supplier management is also enhanced by functions such as pre-approval and pre-negotiated contracts.
Procurement is not just about compliance and price, but also involves sustainable and ethical choices. eProcurement can promote procurement traceability by keeping supply chains transparent. In a study by the NYU Stern Center for Sustainable Business and EcoVadis in 2019, “81% stated that over the past three years their commitment to sustainable procurement had increased moderately or significantly.” Having a ‘clean sheet’ regarding procurement is also important to your brand’s reputation in the marketplace. For more information read: Ethical & Sustainable Procurement is Essential.
Choosing procurement software?
Implementing Procurement Management software will save your company money. In order to see a healthy ROI, buy a solution that fits your needs both in terms of functionality and capacity for future growth.
Invest today, reap the rewards tomorrow.
By Jeannie De Vynck