November 20th, 2018 • Procurement Process
Organizations aren’t really hopeful of finding an automated procurement system that fits their unique procurement process. Packaged software only automates a few key steps. As for the rest, the procurement team is forced to modify their existing process to fit around software limitations, when it really should be the other way around.
Customizing a ready-to-use procurement software is costly and time-consuming. Even with cloud-based procurement solutions, organizations need to wait until the platform rolls out new features. So, how can they find a straightforward replacement for their manual procurement practices?
The best possible solution is to create your own automated procurement management system on a codeless procurement process automation platform like KiSSFLOW. If you haven’t already considered using a procurement automation platform, you’ll be amazed at the tasks that will be offloaded.
An automated procurement system can take on everything from purchase requisitions to online purchase orders, and invoice management to vendor management. All you need to do is analyze the existing process, and convert paper-based processes to digital workflows. Here’s how to create your own automated procurement system.
A procurement system is a software system that manages all procurement-related activities. These may include approving purchase requisitions, creating purchase orders, selecting and managing vendors, collecting delivered goods, reviewing invoices, and paying for them. It handles all these activities electronically. Automated procurement management gives businesses access to view and review all purchase requests and orders, helping them ensure that nothing slips in without approval.
Online procurement systems help organizations ease down the administrative burden and improve long-term cost savings.
‘Procurement system’ can be a slippery term. Depending on the vendor you choose, it can describe a basic purchase order management system with limited functionality, or an end-to-end procurement management software.
What really matters is the number of modules bolted into it. Each of these modules usually automates a core procurement functionality.
No matter how it is defined, here are five important modules every good procurement management system needs:
Track and manage all POs centrally with customized budgets, permissions, approval workflows, and policies
Create and route purchase requisitions through an approval cycle and convert them to POs automatically
Match invoices with order receipts and route them quickly through approval steps to the finance software and make invoice approval a breeze.
Set up a centralized database system to capture and store all vendor information without duplication
The ability to store purchasing contracts securely on the cloud with user-specific access and audit trails
Before creating an online procurement system, you may have to pick the right platform through which you’ll implement the system and use it.
Low-code tools like KiSSFLOW allow organizations to take charge of their complex procurement process with easy-to-use, drag-and-drop form builders. Unlike other rip-and-replace solutions out there, KiSSFLOW integrates seamlessly with existing systems.
These steps can help organizations craft a procurement management system in the shortest time frame:
You can either pick automated procurement apps like Purchase Order, Purchase Requisition, Invoice Approval, Contract Approval and Vendor Registration from KiSSFLOW’s ready-to-use templates or design your own app manually.
To create an app from the ground up, you will need to create digital forms, automate workflows, and integrate it all with back-end master databases. Best of all, you can accomplish all this and even more without any coding.
For instance, if you chose to go with a pre-designed purchase order template, you may need to customize quite a few fields in the online form, and steps in the workflow process, to make sure it is in sync with your business needs. Then, you can work on fine tuning the app by linking a drop-down list to your master database, creating conditional logic for confidential data, and so on.
Once you’re done tinkering with the app, it’s time to share it with everyone. Before you proceed with the launch, evaluate the app with a critical eye, sharing it with a small team and gathering feedback. See if everything works as it should. After testing it, publish the app, share it with all employees, and put a stop to the constant paper shuffling and email race.
Although everything is likely performing well at this point, it would be wise to keep an eye on the app’s performance. In addition to keeping track of technical glitches, organizations can evaluate the effectiveness of the app by tracking meaningful metrics like the number of payments made within the deadline, the decrease in purchasing holds, the cost of PO processing, and more.
Choosing the right procurement automation platform is similar to purchasing a car. A few features like a bluetooth stereo (or in our case, an e-signature integration) are optional, nice-to-have functionalities, whereas others like a powerful engine and robust wheels (read a smart dashboard, customizable interface, etc) are essential.
Given below are the five features that are essential for a procurement management system:
Quick approvals anywhere and at any time with the help of automated workflows and alerts
Customizable workflows and data fields with simple, drag-and-drop interface
Actionable insights and visually rich reports to make data-driven decisions
Automatic purchase order matching with related invoices and purchase requisitions
Consitional and rule-based approval process to optimize the organizational spend
Most organizations today place their trust in off-the-shelf procurement systems. Although they seem like a perfect solution, these cloud platforms need too many ‘workarounds’ to complete the procurement cycle.
When you have a unique purchasing process, it is better to build your own procurement system on a low-code platform like KiSSFLOW. KiSSFLOW lets organizations of all sizes tailor automated apps that are intune with their business process.
Procurement automation solutions like KiSSFLOW will eliminate redundancy, improve efficiency, increase collaboration, reduce the processing time, and keep the process transparent.
Scouting for a perfect procurement management system? Don’t settle for anything that doesn’t offer you extensive features and great control at a pocket-friendly price.
Take a look at KiSSFLOW. Automate core procurement processes and see how easy it is to develop your own procurement app!
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(annual billing only)
*Enterprise pricing is based on expected transaction volume and maximum number of users