December 19th, 2018 • Procurement Process
Every business needs a robust workflow process in place, especially process-heavy teams like procurement that have a direct impact on the organization’s bottom line. Outdated procurement workflows are cumbersome and time-intensive to maintain.
Procurement workflows have moved on from paper forms to spreadsheets and online forms. But still, most purchasing officers spend the bulk of their day chasing emails, hunting spreadsheets, and processing paperwork.
Outdated procurement practices blur visibility, increase miscommunication, and reduce the control organizations have over their procurement process. Flawed spend control will only lead to further financial burdens.
In order to refine the procurement process and save valuable resources at the same time, organizations need to optimize their procurement workflows. Here’s all you need to know about procurement automation.
Procurement workflows are the set of predictable and repetitive tasks in a procure-to-pay process. These workflows handle the responsibility of moving the data and documents involved in a procurement function from one step to the next. Each workflow in procurement management has its own set of approval rules, task assignments, and more.
Familiarity with the procurement process doesn’t ensure efficiency. Only a carefully designed procurement workflow can optimize the purchasing process end-to-end. Using a procurement automation tool like KiSSFLOW, purchasing data and documents move from one decision point to another seamlessly.
Here’s how you can create procurement workflows in four simple steps:
An ideal procurement automation tool allows you to tailor a workflow that meets your needs. KiSSFLOW lets users draw a digital version of their workflow from ground up or choose one of our 50+ pre-built templates.
Using KiSSFLOW organizations can create custom workflows with delightfully simple drag-and-drop tools. Users can create rule-based workflows that handle formulas, conditions, and exceptions effortlessly.
After completing the initial groundwork, organizations need to start setting up permissions and actions for each task. This step of the process helps businesses enforce business rules and accountability without any manual effort.
The final step of procurement workflow process automation is to perform a trial run before the workflow goes live. Allowing day-to-day business users of the process to test it internally will help you spot troubles and make improvements before launching it to the whole organization.
The rising demand for digital procurement has made workflow automation the perfect solution to eliminate inherent process inefficiencies. Procurement workflow processes streamline a procurement function without compromising on security.
Here are five complex procurement workflows that can be redesigned with automation:
The seemingly endless process of purchase requisition management is a perfect use case for automation. Typically, purchase requisitions involve going through neverending email threads and overflowing spreadsheets to decide whether or not to approve the request.
Procurement workflow automation will eliminate the manual intervention and accelerate the purchase requisition process considerably.
When it comes to the purchase order process, it is essential to ensure consistency and accuracy. However, when purchase orders are processed manually, these two parameters take a hard hit.
Although paper checklists can bring in some sense of control, it is impossible to rely on them solely as they can be easily misplaced or lost. An automated purchase order workflow will validate every step, ensure compliance, and process POs consistently on time.
Invoice approvals are always handled in a last minute rush. As a result, organizations end up missing early payment discounts, straining vendor relationships, and paying hefty late payment fees. But it doesn’t have to be like that.
An automated invoice approval workflow will accurately handle all the steps involved in an invoice approval process like three-way matching and vendor payment, on or before the deadline.
Although it seems easy to contact a vendor to place a new order or deliver the routine package or make a one-time purchase, an effective vendor management process is nothing but simple. Most often the process of selecting, onboarding, and managing vendors can be overwhelming.
An automated workflow will allow organizations to manage safety, risk, compliance, and other aspects of vendor management in a single interface.
As the number of purchases grows with the business–managing it manually becomes more and more difficult. By automating the creation and management of purchasing contracts, manual errors are avoided and data retrieval is simplified.
Contract approval workflow automation will prevent situations like expiration of contracts, mishandling of confidential data, and more.
Procurement teams that embrace workflow automation ensure a better purchasing experience, improved productivity, and ensured standardization. With a user-friendly procurement workflow process automation tool like KiSSFLOW, organizations can save time, cut costs, reduce errors, and ensure consistency in the procurement process.
An easy procurement workflow automation system like KiSSFLOW will help organizations improve the speed, accuracy, and effectiveness of procurement processes, benefiting the procurement team, line managers, and the whole organization.
Take a look at KiSSFLOW to find out how it can do wonders for your procurement apps with its extensive range of workflow apps.