The procurement process is not simple and straightforward. It’s complicated. The manual procurement process is very labor-intensive, time-consuming, and involves a lot of paperwork. In this blog, you will know 5 Benefits Of Using Procurement Source Technology.
On the other hand, when you use technology in your procurement process, it saves you a lot of time. It makes the whole process much simpler and hassle-free. These are just a few of many advantages of leveraging technology in the procurement process
Before talking about the key advantages of using technology in your procurement process, let’s quickly look at the most common issues in the procurement process.
Major issues with a procurement process
Companies face problems in their procurement processes because of an ineffective process. It also leads to the occurrence of human errors in the process.
The following are some of the most significant procurement issues that can affect your business:
. Although it can solve half of your procurement related issues, it’s a challenge to identify a high-quality vendor for your business.
. Redundancy and inefficient procurement processes often result in disorganized data management. A chaotic data management system will further invite problems like the duplication of payments or delays in payment.
. If there’s redundancy in the procurement process, it may lead to an increase in average supplier lead time.
. There are high chances of companies ending up with low-quality materials when they don’t track or inefficiently track the quality of incoming materials.
It’s difficult for companies to prevent fraud and duplication of contracts. That’s because they have an ineffective fraud protection system in place.
So what are the benefits of using Procurement Source Technology?
- Improves efficiency and speed
Technology can help you increase the efficiency and speed of your procurement process significantly, resulting in time savings.
Important tasks can be dealt with using technology instead of getting a person to do them. This reduces the work of your procurement team and gives them more time to handle more complex tasks in the procurement process.
- Decreases the average cycle time
With a manual procurement process, your team likely spends most of their time drawing up and reworking contracts. However, with the help of technology, you can use online purchase approvals and order templates. You can easily make minor required changes and create contracts that are suitable for your company.
You can leverage technology to store your existing contracts and reuse them whenever needed rather than working on a new one every time.
- Eliminates manual document storing system
A manual procurement process often leads to a lot of paperwork and those papers eventually pile up. It can be difficult for your procurement team to search for and track a single expense document. Also, it’s not easy to organize and store these papers.
That’s why it’s important that you leverage technology and completely eliminate your paper-based storing system. When you use a paperless information and data storing system, it will help you and your team in many ways. For instance, it will become much easier for you to organize, access, and track your documents whenever you want.
- Makes your procurement process transparent
With the help of technology, you can conduct audits effectively. An audit will give you 360-visibility, and increase the transparency of the whole process.
This will make sure that there’s no misuse of your budget and that it’s spent on necessary and relevant services and/or products. With the help of technology, you can measure your KPIs more efficiently and effectively.
- Increases data accuracy
Some 48% of the companies agree that manual data entry and an inefficient process is one of the top workflow process challenges. It results in inaccurate data entry. Which, in turn, can increase the chances of errors in the procurement process.
However, you can address this issue with the help of automation. Automation will help you streamline the data process. As a result, you will witness a decrease in errors and a significant increase in the accuracy of data.
It helps you keep all of your data and documents organized so that you can easily and quickly track any vendor’s contract. Technology also helps you create a more transparent procurement system.
Source-to-contract (S2C) solutions the best procurement technology
S2C provides a holistic view of spend, suppliers, and contracts so you can maximize procurement performance. Maximize upstream efficiency, savings, and business opportunities with Source-to-Contract (S2C) for more details please click here
Source-to-Contract, or S2C, provides the complete spectrum of related upstream procurement processes required to optimize searching and finding just the right products and services your organization needs by choosing the right suppliers. These include analytics, sourcing, supplier management, and contract management. S2C starts with a needs analysis of your particular products or services based on historical category spend for assessing savings and compliance opportunities.
Source-to-contract (S2C) refers to the collective set of procurement processes adopted when sourcing products or services.
The process begins with analyzing the product or service requirement and developing a sourcing strategy. In accordance, S2C process includes all activities performed by the project and procurement departments to help ensure the effective acquisition of goods and services.
Related activities that S2C cover can entail the analysis of needs and availability of suppliers within targeted market, development and rollout of sourcing strategies, the entire RFx process to include RFI, RFP, RFB, & RFQ, contract negotiations, contract implementation, and supplier performance management.