What Is Procurement Software?
Procurement software is an automated solution to remove the manual processing of purchasing goods & maintain inventory control.
This allows you to digitally generate purchase orders, instantly match invoices & email bills & receipts.
The right procurement software can benefit your entire business, so it is worth learning what it can do for you - any organization, big or small.
One Obvious Benefit & Not Two So Obvious
Let's be honest, you probably already know of the benefits of automating manual jobs that take way too much time out of your day, but you might not know about the up-to-date technology, latest developments & their specific benefits.
1. Reduced Cost
This one is simple & will be the first benefit that most people think about, & it will even have an overarching effect on all benefits to come.
Let’s mention the not so thought about: paper waste & storage; spending less money on supplies seems minimal, but it soon builds up over time.
Moving away from paper will also allow you to minimize storage & space. No longer will you need extra office space filled with filing cabinets sitting gathering dust.
Also, not forgetting the recycling or confidential office waste collections you can eliminate.
The benefit the managers hate to mention, headcount reduction.
No one likes to talk about it, but it is inevitable in today’s business; if you don’t do it, the competition will.
Reducing headcount means reducing wage & pensions benefits; fewer heads mean less need for office space, supplies & fewer people using up all the tea bags.
In this digital world, data is currency, but more importantly, for the procurement department data = savings.
This allows you to combine spending data from all departments from pencils, computer screens & any other business expense.
Showing which department uses the most resources allows you to investigate why that may be, & if it is needed, allowing you to allocate proper use of resources to required departments.
Data gives you control of spend & allows you to manage inventory across the business.
The transparency of the data allows management to track spend through the business & make any changes as needed.
3. Buying Power
Modern technology brings new opportunities: automated procurement solutions connected to purchasing portals such as Amazon Business or Lyreco.
The data collected will allow cross-check prices across suppliers, find the cheapest or best quality option, & build a preferred suppliers list.
Procurement software (as a full P2P package) can be rolled out company-wide, with a ‘punch-out’ capability, making it easy for staff to use preferred suppliers by integrating the supplier’s procurement framework at the PO request stage.
Relationships with these vendors can be maintained through a ‘virtuous circle’ – you promise the supplier several purchases, they provide a discount, the procurement software makes it easy for staff to buy from the suppliers, ad infinitum.
A most important function In Compleat’s software is a fully digital P2P process (no OCR needed) with fully integrated purchasing portals (such as amazon business) which allows for ‘digital procurement,’ which includes the analysis of spend to locate the best deals from the best suppliers reducing cost before you even press the ‘buy now' button.
You May Already Have Automation
There are many benefits to Procurement automation, & these are just a couple.
The main goal for any business is to be profitable - saving money from unnecessary spending allows corporate to spend on building the company.
Automation is a no-brainer, & it is definitely something you have discussed through video calls & maybe even implemented some version of automation within the business.
However, all automation is not equal, & it is always worth keeping up with the latest potential benefits from improving technology, especially when you have amazing opportunities to save so much time & money.