The Procurement System Buyer’s Guide 2020
According to a report, more than half of the companies are moving towards cloud procurement systems and all for a very good reason. Legacy systems and manual processes aren’t equipped to handle complex modern procurement processes. They don’t just slow down the process, but also introduce discrepancies.
By moving to a cloud procurement system, organizations are able to eliminate inefficiencies and streamline end-to-end procurement workflows.
What is a procurement system?
A procurement system or purchasing system allows organizations to automate the process of purchasing goods/services and maintaining inventory. It helps manage all the procurement-related processes, including:
- Sending purchase requisitions
- Generating purchase orders
- Selecting and managing vendors
- Approving delivered goods/services
- Reviewing invoices.
With an online procurement software, you are able to automate repetitive tasks, which saves time and costs as well. Moving your procurement process online also ensures that you don’t miss anything due to manual errors.
Benefits of a cloud-based procurement system
By digitizing the procurement process, you can enforce compliance in purchasing across the organization by making it easier for your employees to make purchases and get swift approvals for the same.
An online procurement system streamlines and automates the traditional procurement process. As a result, you can easily manage PO-related activities, which also free up your team members’ time for other core activities.
3.Better supplier and vendor relationships
By approving purchase orders and invoices swiftly, you can clear payments on time and maintain better relationships with your suppliers and vendors.
4.Speed up purchase approvals
With automation, you can a bring in accountability and transparency in your purchase approval process. It can help your team members to keep track of a requisition status and approve on the go.
5.Spend Under Management
A e-procurement system enables spend visibility and eliminate unwanted/unplanned purchases. With all your purchasing at one place, you can easily know who purchases what and why.
The modules of an ideal procurement system
You should be able to generate purchase requisitions and check the status updates for any of them in real-time.
The procurement system should allow users to generate purchase orders from approved purchase requisitions. You should also be able to track, manage, and view all the purchase orders anytime, from any device.
There needs to be a centralized database to capture all the vendor information without duplication. It should also be possible to enroll new vendors from within the PO generation process in order to save time.
The tool should be able to cross-check data in purchase requests, purchase orders automatically, and invoices to get quick approvals and clear payments on time.
The procurement management system should seamlessly integrate with other business applications that you use on an everyday basis so that your employees don’t have to spend too much time toggling between different presentations.
The ideal tool should be able to drive actionable insights from the procurement data, allow you to track key performance metrics, and generate customized reports.
Features to look for in a procurement system
When it comes to finding the right online procurement system, you should start the process by listing your business requirements, and then look for a tool that matches those very requirements:
Ideally, these are the five essential features that an online procurement system should have:
Customizable interface and workflows
Every organization has a different set of requirements, and the online procurement software you choose should make it easy for you to create a customized interface and workflows according to your organization’s custom purchase order process.
Cloud-based access for quick approvals
You should be able to access the tool from anywhere and from any device in order to get real-time notifications and give quick approvals for different parts of the procurement process.
Real-time Budget Tracking
To make smart purchasing decisions and speed up your approval process, your procurement tool should give the right information at the right time for the stakeholders.
Accounts payable invoice automation
The software should be able to automate your invoice approval process with three-way invoice matching. Where it should verify and match the data from purchase orders, receipts notes (GRN) and invoices to make sure there are no discrepancies.
Supplier lifecycle management
Managing supplier relationship and mitigating supply chain risk is one of the key functions of procurement. So, your procurement tool should be able to onboard, manage and monitor your suppliers performance.
Visual and customized reports
The online procurement tool should be able to extract data and generate customized reports in order to drive actionable insights. By understanding your company’s procurement process through visually rich reports, you will be able to make better data-driven decisions.
It is important that the procurement system has seamless integration functionality so you could easily connect it with your existing accounting and ERP softwares.
Kissflow–a cloud-based and fully customizable procurement system platform
Kissflow is a digital workplace that lets your team members collaborate and coordinate seamlessly. You can manage and automate the complete procurement process through Kissflow Procurement Cloud, right from generating purchase orders to approving invoices and making payments. It is a completely customizable platform that lets you create custom workflows according to your organization’s specific requirements.
Sign up today for a free demo to see how Kissflow can help streamline your business’s procurement process and in turn, save costs.