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
WorkSafe Victoria - Procurement Solution
"From my perspective, it's all about ensuring the successful implementation and daily compliance of an organisation's procurement policy. It's also about helping staff at all levels to be confident in undertaking procurement activities, knowing that they're adhering to all expected obligations required by their organisation and best practice. So it's all about obligation management."
- Bert Myburgh,
Managing Director of eBMS,
the creators of Nimblex
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 Automation
By 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 (Software as a Service) systems. Being online provides immediate access to data anywhere, anytime, and gives the procurement process a global reach
- A good Procurement Management solution will integrate with existing essential software applications, especially your Finance System for tracking invoices and Purchase Orders
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" - i.e. errant purchases that are not conducted according to business rules
- 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.
Written by Jeannie De Vynck
Edited by Julia Lee
Since 2010, we've been making procurement management software more efficient, cost-effective and less complex. Australian made and owned, our entire team is based in Australia, with offices in Melbourne, Adelaide and Perth.
We configure software, without the need for writing code, long lead times and big budgets. Nimblex fits around you and your company's way of working, you don't have to fit around our software.