The procurement process is often fraught with inefficiencies, which can lead to wasted time and money. Purchasing automation can help improve the speed and efficiency of the procurement process, while also providing other benefits such as cost savings, improved vendor relationships, and increased control and visibility.
In this blog post, we will discuss why you need to automate the procurement process and how e-procurement software can help you achieve this goal.
The Traditional Procurement Process
To understand why you need to automate the procurement process, it is first important to understand the traditional way of running it. The typical procurement process includes requisitions, purchase order creation, invoice management, approvals, and making payments.
This process often includes repetitive and unnecessary tasks and forms that are ripe for automation.
In addition, the traditional procurement process is often manual and paper-based, which can lead to errors and inefficiencies. For example, if an invoice is lost or misplaced, it can take weeks to track down and process. This can cause delays in payments and lead to frustration for both the vendor and the business.
The Benefits of Purchasing Procurement Process Automation Software
There are many key benefits of adopting e-procurement software, including significantly increased speed and efficiency, substantial cost savings, improved relationships with vendors, centralized communication, increased control and visibility, and the capability for real-time data reporting.
E-procurement software provides a central platform for businesses to manage their purchasing processes. This can help streamline requisition forms, purchase orders, invoices, the approval process, and payments. By automating these repetitive tasks, businesses can save a significant amount of time and money.
In addition, procurement process automation can help businesses avoid mistakes that can lead to delays in the procurement process. For example, if a requisition form is filled out incorrectly, it can be automatically rejected by the software. This can save time and frustration for both the business and the vendor.
Another benefit of e-procurement software is that it can help businesses save a significant amount of money. By automating the purchasing process, businesses can eliminate the need for paper requisition forms, purchase orders, and invoices while also cutting down on late payments that come with hefty fees. This can lead to substantial cost savings for businesses.
E-procurement software can also help businesses negotiate better deals with vendors businesses can easily compare prices and terms from multiple vendors which can lead to significant cost savings for businesses.
In addition, e-procurement software can help improve relationships with vendors. For example, if a business is using manual processes to manage its purchasing, there is a risk of human error that can lead to delays in payments. This can cause frustration for vendors and may lead them to seek out other businesses to work with.
E-procurement automation software can also help businesses communicate more effectively with vendors in a central location. For example, if a business needs to make a change to an order, it can easily and quickly communicate this change to the vendor through the software. This can help avoid misunderstandings and delays.
An E-procurement automation solution also provides businesses with increased control and visibility over their purchasing processes. For example, businesses can set up alerts to notify them when a purchase order is created or an invoice is received. This can help businesses stay on top of their purchasing processes and avoid delays.
Finally, e-procurement software can provide businesses with real-time data reporting. This can help businesses track their spending, identify trends, and make informed decisions about their purchasing processes. With more time focused on tracking KPIs, you can set your business up to grow and scale.
Overall, e-procurement software can provide several benefits to businesses that are looking to automate their procurement processes. By automating the purchasing process, businesses can save a significant amount of time and money.
If you are considering automating your procurement process, our team at Mosaic can help you get started with an e-procurement automation solution tailored to your business needs. Contact Us today to get started.
For more automation tips and tricks, check out our blog for useful articles like The Accounts Payable Glossary: Everything You Need to Know About AP Automation.