How to solve procurement challenges?
Common procurement challenges include human-errors in manually entering the data, duplicate invoices, slowed down approvals, gap in the internal communication, lack of visibility and control over procurement cycle. These challenges pose a great threat to the bottom-line of an organization as they may cost a lot of money to rectify such mistakes. It may also lead to poor supplier relationships as well which can cause an organization to lose its competitive edge. Moreover, such challenges create delays in your supply chain which can ultimately lead to dissatisfaction of customers and loss of market share.
Employing a central platform and communication channel for procurement processes is the most effective way to solve the hurdles dominating procurement. Procurement software provides spend visibility, automates processes like data entries, three-way matching, and approval routing to speed them up, and enables accurate and automated KPI measurement. Setting up strict approval workflows to ensure no maverick spending occurs, adding another approver if the PO is worth more than a certain amount, etc. Such workflows provide more control and visibility into the system which is only possible with the use of an insightful procurement system.
In addition to this, procurement process management software can digitally ensure statistics on past performances and reputations of vendors before making orders to evaluate risks and take steps to mitigate them. This way, it can identify efficient suppliers and build relationships with the blank.