Tired of the high costs and long delays in your procurement process? Have you ever experienced low productivity with your employees? Then you deserve a flexible solution that will help complete all your requirements!
The solution is electronic procurement or e-procurement, a business-to-business (B2B) process of gathering your company’s materials or services by using the web. Basically, all of the tasks are done in just one software.
There are wonders that it brings to businesses such as lessening expenses, increased productivity, automating the payment cycle, and many more. A study from KPMG even stated that almost 66% of organizations plan to incorporate their procurement operations.
That’s why it is essential to have software like Consus, a supply chain solutions provider, to be integrated into your business. It lets your procurement leaders fully be in control of the experience on a user-by-user approach.
In our fictional scenario, Marne, the chief operations officer (COO) of Technical Global was disappointed in seeing the reports from the procurement team. She noticed that there was no clear track of where the expenses came from.
Before using an e-procurement solution, the procurement team sent some disappointing and messy reports. But it all changed with Third Pillar’s eProcurement implementation. This tool recently helped me easily access the employees to vendors, items, and other data. It is cost-effective too!
Now, you know the details of e-procurement! Take a look below to know more!
Decreases expenses
We all heard the saying that time is money. You will save money and time if your supplier's data is all in one software. You can improve your search for suppliers, cut down your waiting time, and save 4-14% on annual purchases.
It gave her procurement team an organized view to store categories of items and their vendors. They were only able to make purchases strictly within the budget. This scenario showed that no one can buy supplies that are not matched with their company’s equipment and IT framework.
Enhances productivity
Using e-procurement solutions can help automate the processes of your business, which reduces the time used for less urgent tasks. This can boost employee productivity as they work on more complex workloads.
For example, Marne noticed that her business can quickly search and interact with suppliers. Her employees have access to all of the procurement data in this software. Then she noticed how the unnecessary workload has lessened because her employees are prioritizing more urgent matters. This showed how that kind of simplicity will help enhance the productivity of your business.
Eliminates late and doubled payments
The price in the bill should be parallel to the one that is on the receipt of your purchase order. The quantities of the supplies, product descriptions, and pricing should be the same as the ones you ordered and received. Even though this task can be executed manually, automation makes the process more simplified.
According to an Accenture study, whenever it comes to an automated three-way match, the procurement teams lessen the invoice processing times by 72%. This shows that e-procurement software can help you avoid late payments to your suppliers
Removes the risks of dark purchasing
The risk of using outdated tools in managing your procurement can lead to dark purchasing. Manually handling procurement may confuse your stakeholders when it comes to identifying the person who sent the requests.
You will avoid that risk with an e-procurement solution because its technology can help your stakeholders view the entire categories of suppliers.
Transparency in the procurement data can cancel unnecessary services and avoid purchases without any official agreement. This type of solution can prevent your business from being in a situation that can be avoided.
Gives your suppliers a well-deserved support
The vendor portal can give your suppliers an easier time when completing their tasks. It can help them trace orders, add delivery data, organize categories, and provide billings. You can offer your suppliers more exposure and updates regarding the payments and provide better communication on one platform.
Lessens the workflow problems
Procurement processes that are manually handled may result in too many separate files and emails. This will increase risks and errors in providing approval. However, if you use e-procurement software, you can protect confidential data and solve purchase challenges.
You can do all of these tasks while keeping the procurement process stable. This will relieve the stress of your procurement and finance department by letting the system do the administrative work. Now, that’s another way to increase their productivity!
More concrete strategies
Information provided in spreadsheets, emails, and chat boxes doesn’t show the full purchasing cycle. It makes others in procurement positions unaware of important information related to purchasing insights.
For example, Marne had difficulties in looking for the complete purchasing cycle. She was completely unaware of the data that is related to the important purchases. Then she realized that once there was an e-procurement system in place, she can view all of the traces of previous purchases and vendor performance.
With this solution, the procurement team has an easier time creating reports and gathering metrics like the timeline, spending under management, and many more. I can easily see the supplier's performance, analyze the provided data, and understand insights to give the team the strategies they need to make the cycle better.
Here at Third Pillar, we are willing to help your business grow with the benefits mentioned above. Our team wants to enhance your procurement cycle by integrating Consus into your business.
With this partnership, we can guarantee that you will encounter a qualified team of experts. Third Pillar wants your business to be connected with a global supplier, save time, and view transparent and clear reports online.
Want to start investing in e-procurement? Bring your business to the future by scheduling a consultation with us.
Know more about our e-procurement solution here!