February 27th, 2019 • Procurement Process
If your procurement process isn’t automated, you’re already behind. When automation permeates your procurement process, it offers huge benefits to your organization’s bottom line including spend optimization, process transparency, and better supplier relationships.
What’s more? These are not the only benefits of an e-procurement process. With the right procurement solution, organizations can easily reap indispensable benefits. A better understanding of these benefits will help businesses realize that e-procurement is no longer a competitive advantage but a strategic necessity.
An e-procurement process improves the efficiency of the procure-to-pay cycle by automating repetitive tasks and bridging process gaps. The end-to-end procurement process cycle from needs identification to invoice approval and payment processing is automated. An automated procurement process will enhance efficiency, solve inherent challenges, and deliver savings.
Here’s a list of eight game-changing benefits that organizations can attain by implementing an e-procurement process.
Most e-procurement software solutions are offered on a pay-as-you-use subscription model. What’s even better is that there is no implementation fee or upgrade costs involved. E-procurement tools offer an array of dedicated features to manage the end-to-end procurement process similar to those offered by a full-fledged ERP system, for the fraction of the cost.
Manual procurement processes often result in a whirlwind of paperwork and overflowing spreadsheets. Trying to track an expense is similar to looking for a needle in a haystack. Rather than digging through the filing cabinet for hours, organizations can retrieve and access purchase records at a glance with an e-procurement software solution.
With an e-procurement process by your side, you don’t have to worry about missing your deadlines and due dates ever. Purchase contract about to expire? You’ll get timely reminders to help you renew or end the supplier relationship. Year-end financials? All stakeholders get automated notifications with a list of tasks that must be completed to meet the deadline.
Is dark purchasing running rampant within your organization? An e-procurement process can cut costs and stop maverick spend from pilfering your organization’s bottom line. Audit trails and 360-visibility will help organizations ensure that the approved budget is spent only on relevant and necessary products/services. Essentially, it helps you measure your procurement KPIs.
The old proverb ‘time is money’ stands true even today. As the market conditions continue to evolve, in order to accelerate the procurement process cycle, the procurement team needs to spend less time executing the process and more time on value-added activities. An e-procurement process helps employees stay productive by:
An e-procurement process doesn’t just allow procurement professionals to perform their tasks faster, but also help them keep it structured and accurate throughout.
Organizations that handle procurement activities manually pose a higher risk of non-compliance as it is hard to perform due diligence on each stage of the procurement cycle. Whereas an automated e-procurement process with rule-based workflows will prevent erroneous and incomplete requests eliminating the chance for compliance risks.
Only a handful of organizations use a standalone application to take care of the end-to-end procurement cycle. Even then, they had to manually key in the purchasing data into their ERP or accounting software. An ideal procurement system will stitch all standalone modules together without any hiccups and enable seamless data exchange through APIs and other means.
Most procurement leaders have to rifle through stacks of procurement documents to get an idea of the company’s purchasing trend. On the other hand, e-procurement software offers an array of readily available reporting templates allowing procurement leaders to pick what details they want to include on the report and create it in a few clicks.
Procurement activities are moving online on all fronts. According to a recent Paystream Advisors report, nearly 35% invoices are delivered via online mediums proving that vendors are moving to adopt digital tools. As vendors continue to embrace technology, an e-procurement process will help businesses interact better with their vendors while ensuring compliance.
While an e-procurement process is a growing necessity for small and mid-sized organizations, their requirements are quite far from that of an enterprise. So, an ideal e-procurement system has to be flexible enough to accommodate those business needs and grow with the organization itself.
User-friendly e-procurement tools like KiSSFLOW enable organizations to streamline their procurement process, improve the overall efficiency, and enhance the business needs at an affordable cost. KiSSFLOW helps procurement leaders to align their process with their organization’s overall mission and goals.
An e-procurement tool is one ingredient that every procurement team must have to ensure that all other elements (spend optimization, employee productivity, process compliance, vendor relationships, and procurement strategy) fall into their place.
Small and medium businesses can leverage the power of an e-procurement process to expand their procurement activities rapidly while keeping down the costs and risks to a minimum.
Looking for an e-procurement system? Take a look at KiSSFLOW and see how it helps.
* - Enterprise plans are calculated based on the expected volume of transaction and the maximum number of users