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How to optimize the procurement process?


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Conventionally, the procurement function has been dominated by time-consuming, redundant, obscure, and error-prone manual processes without sufficient oversight. So, in order to optimize procurement, you’ll have to leverage techniques that eliminate such qualities. Using technology is one of the most efficient ways to do so.

Procurement software lets teams assess vendors and their products in detail and digitalizes vendor consolidation. Employees raise all requisitions digitally, so all steps leading to purchases are recorded.

Tracking the status of orders right from PR generation becomes easy, and all approvals are automated so that no order passes without authorization. The software also organizes POs, PRs, and invoices according to their approval status so all data is accessible and no time gets wasted in hunting it down.

Automating three-way matching ensures that no discrepancies exist between POs, GRNs, and invoices. Invoices do not get lost between piles of data as the software stores them separately, so making accurate payments on time is facilitated. All audit trails are stored as well, leaving no room for fraud. Employees do not have to duplicate data entries, so it saves them time and eliminates human errors in records. Automatic KPI tracking improves performance tracking as well.

Recommended Reading:

Procurement Software for Small Business in 2023 - How to Choose?
Top 5 procurement tools available in the market and which to choose
How to Build a Solid Procurement Strategy for 2023 [9 Steps]
11 Essential Procurement KPIs You Can’t Ignore
Top 4 Procure to Pay Solutions Your Business Needs
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The Vendor Management System (VMS) Buyer’s Guide 2023
The Ultimate Guide to a Truly Effective Procure-to-Pay Process

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