When it comes to procurement, sourcing the right items from the right vendor while on a deadline can sometimes lead to costly errors when done manually. So many industries are using automation for repetitive tasks, and procurement is no different. Procurement automation software is becoming increasingly popular for businesses who want to keep procurement on track and on budget.
The Philosophy of Procurement
The procurement department of an organization plays a major role in whether or not an organization can meet its profit goals. Sourcing materials comes down to getting the best quality at the lowest possible cost. When the process is done manually, it takes a tremendous amount of work to check material needs against the offerings and prices of different vendors.
Manual work always leaves room for human errors that could not only hold up business operations but also drive up costs and affect the bottom line. When automated procurement comes into play, processes become far more efficient. It can drive extreme savings and improve vendor relationships while streamlining the overall operations of a procurement department.
5 Reasons Why Procurement Automation Software Is the Answer to Simplifying Your Procurement Process
If you still aren’t convinced about the efficiency of procurement automation and how much it will simplify the procurement process for your business, here are the 5 reasons that will make you go for procurement automation software.
It Expedites the Approval Process
When purchase requests are done manually, they need to undergo hierarchical approvals to initiate the procurement process. Whether from missed emails or other hang ups in the process, sometimes human error causes an approval and request to get stuck along the way. Automated procurement takes away the redundancy in the process and speeds up the time it takes to get a request approved. This leaves your procurement team more time to focus on more strategic and business-critical tasks.
Easy Visibility Into Historical Spend
When procurement teams are large and work across multiple business units, procurement data isn’t always stored in one place. That makes it really difficult for other team members to access in the future. Since having the right data is essential to a procurement process that achieves its goals, procurement team members need to be able to easily retrieve information on past orders, contracts, supplier quotes, and other relevant information. When you use procurement automation, data on historical spend is stored in one centralized location and can be gathered by anyone at any time, which allows you to make more informed decisions to save money.
Transparent Communication With Supplier
Communication is the key to all successful relationships, especially in business. Having an easy and transparent way to communicate with your suppliers will make your procurement process run far more smoothly. With procurement automation, suppliers and buyers alike can track order status and other details about transactions. Suppliers can quickly respond to bids and buyers can accept quotes all in real time. The back and forth of a manual procurement process is eliminated, saving all parties valuable time.
Centralized Contract Repository
Without a doubt, you’ll need to reference old contracts at some point. With a manual procurement process, you’ll likely have paperwork all over the place, whether it’s hard copies stored in multiple locations or digital files saved on different computers or systems. When you need to pull a previous contract, this can be a nightmare.
Procurement automation software helps you store all of your contracts digitally in one place. And, since the program is cloud-based, team members or other business leaders working anywhere can easily access the documents they need when they need them. This saves everyone time and ensures a standardized process for contracts.
Improves Overall Productivity
Through automated procurement, your team has everything it needs all in one place, making it easier to access information and check the status of orders without chasing down information from multiple sources. This drives more efficient procurement operations by eliminating tedious work and redundancies in the process.
How Procoto’s Procurement Automation Software Can Help You
If you want to drive department efficiency and control procurement cost, procurement automation software might be the answer. With Procoto, you’ll get an affordable way to streamline your operations. With sourcing, digital contracts, and vendor management all in one place, you’ll see why procurement automation is the way to go.
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