How to improve the procurement process?
The procurement process mainly suffers due to the lack of visibility, communication issues, scattered workforce, and inefficient work methodology. Organizations can improve it by using a central digital platform for all procurement-related activities.
A central solution allows the procurement team to research vendors and products extensively before making a purchase to mitigate risks. Vendor onboarding can be digital to ensure that orders are placed to suppliers pre-approved by the organization. Procurement software also allows the automation of the procure-to-pay cycle by allowing digital PRs and automatic approval routing, data entries, three-way matching, and KPI measurements. It also records audit trails and provides insight into spending patterns, mitigating the risk of fraud.
Such software can be integrated with the accounting system to enhance procurement-AP collaboration. Internal communication among department members is enhanced as everyone gets access to data and notifications. Similarly, external communication with suppliers is improved as reaching out to them and granting them visibility into payment statuses is made easy.
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