The constantly increasing market volatility has made it difficult for most procurement teams to beat their rival groups. This is happening primarily because the majority of these teams are still working with outdated ERP systems.
Both legacy ERP software featuring built-in procurement modules and their disparate, standalone counterparts are not helping people in accomplishing jobs requiring digital transformation of procurements. Things have become much easier for teams that have started to use eprocurement software. Read on to know the various advantages of e-procurement.
It Streamlines the Procurement Processes
Procurement processes typically center on a series of stakeholders. These include vendors, requisitioners, procurement leaders, finance teams, inventory managers, etc. Data silos and disparate systems have a strong impact on the overall quality of these processes. They result in a lack of precision and clarity and cause a notable disconnect. As a result, the users face issues like increased expenses, missed opportunities, and prolonged procurement cycles.
Using e-procurement solutions helps in keeping all purchase data within just one interface. Other than simplifying purchase-data management, these solutions also streamline the entire procurement process including sourcing, invoice processing, and payments.
Takes Care of Underperforming Suppliers
Procurement managers rarely get time to monitor the performance of suppliers manually. Manual evaluation and infrequent feedback on supplier performance make it extremely difficult for a company’s purchase department to carry out proper data maintenance. This stops procurement managers from identifying suppliers showcasing poor performance constantly and as a result, the business suffers.
E-procurement software plays the role of an automated vendor manager. It works by collecting, storing, and displaying consistent and up-to-date data about vendors. These include information on their overall performance and the goods they offer. By using these advanced procurement solutions, businesses gain access to enhanced supplier data. This allows them to spot purchase risks, identify opportunities, negotiate more profitable deals, and salvage deeper insights.
Makes Duplicate Payments and Invoice Delays Things of the Past
Invoicing is one of the most crucial parts of any business, online or offline. The terms and pricing mentioned on invoices must be the same as those stated in their respective goods receipt notes and purchase orders.
Maintaining 100% precision is almost impossible if you are working manually using one of the outdated methods. E-procurement software will not only allow you to make duplicate payments and invoice delays things of the past but will also help you to save time and money.
Stops Dark Purchasing
Organizations that refuse to stop using disparate or outdated tools for managing procurement often become victims of dark purchasing. Manual handling of the procurement processes doesn’t allow stakeholders to know the source and reasons for the requests. This makes the loss of money due to unnecessary and redundant purchases and submission to unauthorized vendors pretty common. Such events will never happen if you use e-procurement software.
If you want to enjoy all the above benefits, make sure that the e-procurement software you are using has a good track record. Read feedback submitted by existing users, check unbiased reviews written by experts, and have a close look at the features of the software before you start using it.