{"id":273,"date":"2023-03-20T13:50:01","date_gmt":"2023-03-20T05:50:01","guid":{"rendered":"https:\/\/foundingbird.com\/?p=273"},"modified":"2023-04-11T21:07:42","modified_gmt":"2023-04-11T13:07:42","slug":"5-ways-digitalisation-in-procurement-benefits-your-company","status":"publish","type":"post","link":"https:\/\/foundingbird.com\/my\/blog\/5-ways-digitalisation-in-procurement-benefits-your-company","title":{"rendered":"5 ways digitalisation in procurement benefits your company"},"content":{"rendered":"
Procurement is the process where a company sources for and purchases products or services for internal or external uses. Depending on the company\u2019s size and procurement flow setup, the procurement process can be as simple as comparing several stationery shops to decide on which one to buy printing papers from, to buying printing paper in bulk from a manufacturer, which could involve multiple approval stages before the process could be completed. By digitalising the procurement process through the implementation of an e-procurement platform, companies can manage procurement more efficiently.<\/p>\n
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For large companies, manually compiling the purchasing needs of multiple departments and branches via paperwork and Excel sheets can prove extremely time-consuming. This method of handling large quantities of data also makes the procurement process more prone to human errors. Here\u2019s how an e-procurement platform removes the need for paperwork in the procurement process:<\/p>\n
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With multiple departments or branches, there is a high probability where the same products or services are needed such as office supplies, cleaning services, and pantry items. Through consolidating purchases on an e-procurement platform, the company gets negotiation power for making bulk purchases, besides avoiding the accounting disaster of having the same item being bought at different prices for the same company.<\/p>\n
It is convenient for the company to have a list of suppliers for different purchases needed so that sourcing does not need to be done over and over again. Moreover, having a good relationship with the suppliers through consistently buying a good volume helps obtain a better offer in the long run as well.<\/p>\n
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An e-procurement platform provides spending analysis which helps companies to understand procurement patterns in terms of what has been bought, when it was bought, how frequently it was bought, who bought, how much was spent, who was the supplier, etc. This allows the company to:<\/p>\n
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In order to optimise procurement, compliance is needed to ensure that each purchase made is reasonable and can be fulfilled within the fixed time frame. These are some common rules that can be easily achieved using an e-procurement platform:<\/p>\n
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Through an e-procurement platform, the company can manage suppliers all in one place without having to go to various channels like emails, phone calls, or even fax which can cause ordering errors. Each supplier can be categorised using the Kraljic Matrix<\/a> as follows:<\/p>\n <\/p>\n With an e-procurement platform that is linked to a marketplace, payment can even be made once without having to pay multiple vendors at the same time, reducing cash payments.<\/p>\n <\/p>\n Leaving procurement unmanaged can hurt your company\u2019s finances indirectly as it leaches cash unnoticeably over time. Setting up an e-procurement process may seem like a hassle at the beginning, but as soon as the process is set in motion, steps from sourcing to invoicing approval will come together in an organised way that makes procurement efficient in your company.<\/p>\n <\/p>\n \u2014\u2014\u2014<\/p>\n\n