Procurement is a set of tasks and measures that deal with purchasing materials, machines, devices and orders to simplify the work processes. To make procurement more profitable, you have to take quantities, stocks, and cost-effectiveness into account. The main objective of procurement is to get the materials at the lowest price possible – right quantities, from the right sources and with the right services.
Right from processing requests, execution, collection and evaluation of bids, contracting and monitoring, procurement software can automate all the processes end-to-end. Procurement solution can simplify sales processes while simplifying the purchasing process, controls and inventory maintenance activities. The main core of procurement software is it is an integrated system for managing and organizing documents and business processes. All the documents can be easily organized and the simple user interface makes it easily accessible to employees when working with purchases. Procurement solution simplifies and promotes sales procedures by handling purchase orders, requisitions and invoicing. The system automates purchasing activities, controls and maintains the inventory ensuring that plans and goals are moving as expected.
However, with hundreds of solutions out there in the market, choosing the best procurement software that meets your business requirements is a challenge. To help you out, we have listed some key features to check out for in procurement solution:
Catalog and Order Management
Centralized catalog to view all the products and reduces administrator’s workload.
The solution should promptly approve requests, automatically trigger notifications and ensure compliance with regulations and policies.
Custom reporting and detailed insights with a single click.
Detects fraud/duplicate invoices and upload invoices to generate orders.
Maintains vendor relations and allows users to keep track of vendor performance.
Automatically activate contracts, and gain clear insights into transactions and compliance.
Flexible and advanced approval process with customizable workflows and email-driven notifications.
Tracks spend against goals and forecast budgets.
Capture accurate insights into merchandise and suppliers.
The solution should allow you to record audits, findings, and connect with supplier and other stakeholders.
It categorizes items by traits and characteristics.
The solution should organize products with complete and precise information.
Procurement Software Benefits
When leveraged automation, businesses can avail significant benefits and some of them are as follows:
Efficiency is improved through profitable sourcing and greater transparency.
Better insights into spending and budgets and allows businesses to make the most of discounts and warranties.
As the repetitive and unnecessary processes are eliminated, transactions can be made quickly and the procurement cycle time can be reduced.
Control mechanisms against duplicate invoices, fake invoices and unauthorized spending activities.
Automation of the complete procurement process right from planning through processing of requests will give you a clear and full insight into procurement automation. Overall, you can achieve greater time savings by the distribution of tasks and defining deadlines for various processes.
Procurement Software Trends
Latest trends in the procurement software include:
Supports the decision-making process and delivers useful analytics, which will help businesses make smart and data-based decisions.
Allows users to communicate demands while increasing customer satisfaction and decreasing management costs.
End-to-end Procurement Technology
The main objective is to boost and reinforce client-supplier collaboration.
Choosing the Right Procurement Software
Some of the key recommendations to choose the right procurement software for your business are as follows:
This is considered to be one of the key parameters for choosing a new solution. Support distinguishes good from bad software implementation. Support is a key factor for return on investment and long-term business development. Also, make sure your solution vendor gives you the ability to change suppliers when choosing a new procurement system.
For long-term relationships, ensure that there is a possibility of feature adjustments as per the needs of the company. Specific customization to tailor to the needs of your business should be done when required.
Understand thoroughly what software vendors offer and think about implementation scope, training methods and other technical support.
Reports and Analytics
The solution should be able to produce reports for a specific time period according to the selected parameters to monitor your business and examine all aspects of the business.
Evaluating supplier’s network is crucial as it defines the alignment between providers and suppliers.
Kevin Peterson is a content marketing enthusiast, freelance writer at SutiSoft, specializing in Business, ERP, Technology and Cloud/SaaS trends.