Procure to Pay
3 Areas e-procurement Software can Create Purchasing Best Practices

As part of our discovery process, we engage the purchasing areas early on in the project to understand the specific issues relative their own business. We continually find that many customers are looking for three primary Cost Saving

Goals when implementing our solutions:

1.    Contract Compliance
2.    Process Efficiencies
3.    Spend Analysis

We are often asked to provide best practices as part of our implementation process. Each one will addressed here at a high level:

Contract Compliance – The lack of reporting tools and resources plague many of our new customers as they look for ways to squeeze budget dollars. Many of our customers are increasingly challenged to track their spend to ensure they are leveraging established contracts. We recommend that the supplier catalogs selected by the customer be focused on their top vendors for each category. Many customers are able to determine this by analyzing their current PO Volume. We also recommend that each category have a primary supplier only and that they resist diluting their spend by adding multiple vendors to each category.

Process Efficiencies – Moving from Paper to our application inherently creates a more efficient set of business processes and control points. We typically see a reduction in Requisition to Purchase cycle times from weeks to days…and even faster in some cases…In addition, the ability for each requisitioner to be able to track their request through the entire process eliminates wasted e-mails and phone calls.

Spend Analysis – Once the entity has gone live and built some purchasing volume through our application, they can track spend very quickly utilizing our “Purchase Reports”. Instituting a practice of ongoing reviews of vendor throughput, will allow the purchasing organization to leverage the data for future pricing negotiations with those vendors.

In summary, e-procurement allows an organization to step out of the mundane paper process and become more efficient in saving money through efficient process and contract compliance.

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