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.
Recommended Reading:
How to automate the procurement process?
People also ask
- How to develop a procurement strategy?
- Difference between procurement and strategic sourcing
- How does procurement software work?
- What is procurement software?
- What is source-to-pay?
- How to manage procurement risks?
- What is category management in purchasing?
- What is spend analysis?
- What is e-procurement?
- What is a procurement card?
- What makes good procurement software?
- How to measure ROI in Procurement?
- How to reduce costs with procurement spend analysis?
- How can procurement enhance business profitability?
- How to reduce costs with procurement spend analysis?
- How should you measure procurement performance?
- What is procure to pay in accounts payable?
- What are the challenges in the procure-to-pay process?
- What is the difference between procurement and contract management?
- What is indirect procurement?
- What are the examples of direct and indirect procurement?
- What are the benefits of eProcurement?
- What is a procurement plan?
- How to solve procurement challenges?
- How to automate the procurement process?
- How to improve the procurement process?
- What are supply chain and procurement?
- How to improve the procure to pay cycle?
- How to make procurement more efficient?