There are several issues which your procurement team faces on a daily basis. Issues like finding the right high-quality vendor, getting high-quality materials, avoiding procurement fraud and the duplication of invoice payments.
An ineffective procurement process can increase procurement process costs by 5 times. So, you need to leverage automation for your procurement process to resolve such procurement issues.
Let’s check out why you need to use technology and automate your procurement process.
Helps You Control Company Expenses
A manual process makes it difficult for you to track the purchase order process and the approval of purchase orders by the right people. By automating the procurement process, it will ensure that all goods and services are approved by the right people.
If the approval amount is large, then you can even set approval levels in your procurement process. Automation also enables you to conduct an audit which will help you track and monitor your company’s expenses.
With automation, you can track your expenses by vendor, category, and contract. As a result, you can monitor every dollar leaving your company. And, you can easily control your company’s overspending.
Helps You Reduce Paper-Based and Manual Errors
Manual processes can lead to an increase in errors in the procurement process. There are high chances of your manual documentation getting lost during the process. As a result, it will be very difficult for you to track and maintain deadlines and run the process smoothly.
In fact, 54% of companies are still using paper-based invoice processing and it takes a lot of time. Hence, it’s important to automate the procurement process and go paperless. A paperless process can significantly decrease the number of errors.
In addition to this, when compared to manual storage, online storage of information and data ensures you have better security. Also, it enables you to control access to any sort of data and/or information.
Helps You Reduce Average Cycle Time
One of the major procurement issues which companies face is a delay in the procurement cycle. To overcome this challenge, you need to automate your procurement process.
When you automate the whole procurement process, it can significantly help you reduce the average procurement cycle time. It allows you to make approvals with just a single click in an email.
It also allows you to set an alert for or reroute a task when it’s not completed in the decided time frame. This can happen if one of your employees is on holiday.
If you are interested in learning more about the biggest procurement issues and how they can be tackled with technology and automation, then check out this infographic by PurchaseControl.
Michael, Founder and CEO with international experience in Procurement and Spend Management
Software – ‘PurchaseControl’