e-Procurement Software

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Procurement is increasingly a key function of an organization’s cost-cutting and efficiency-enhancing strategies. Procurement departments responsible for contract management, risk mitigation, and supplier relationship management face the following common challenges every day. These challenges can be met with the right tools and techniques. Automating the procurement process frees professionals from low-value tasks, allowing them to focus on strategic issues. Automation eliminates manual processes, reduces human error, and improves overall purchasing efficiency, thereby ensuring that purchasing departments are creating value and building a strong bottom line.

1. Poor supply chain transparency

Challenge:

Lack of visibility into the supply chain is one of the main procurement challenges. Visibility across the whole chain is an important tool for meeting regulatory requirements and reducing risk. According to the Deloitte Global CPO Survey, 65% of procurement professionals have no visibility outside of their Tier 1 suppliers. Leveraging technology can help these professionals create value and reduce costs while achieving a comprehensive view of the supply chain.

Solution:

Software such as the 8Manage SRM, procurement departments can reduce risk, shorten processing times and streamline procure-to-pay cycles and can better manage supplier relationships.

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3. Control and visibility of spend

Challenge:

Uncontrolled spending is one of the toughest challenges that procurement professionals face. Unexpected orders, rush orders, and purchases (from suppliers selling additional merchandise) outside of the company’s established purchasing procedures are indirect expenses that result in loss of revenue and control. Since these purchased items cannot be easily accounted for in financial and inventory records, it can complicate procurement strategies, departmental budgets, inventory management, and financial auditing.

According to the report, 39% of companies believe it is very important to have more control over indirect spending. The only way to control business spending is through visibility, and data helps enable that visibility. Access to real-time data across the supply chain is very important for organizations.

Solution:

To make sure that all spend categories are managed as efficiently as possible, the best step purchasing departments can take is to automate spend management. Using 8Manage SRM reporting. This can improve the accuracy of financial reporting data in a fast, simple and accurate way.

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5. Comply with the contract

Challenge:

Another challenge in the procurement process is supplier compliance with contracts. Because the number of suppliers is very large, it is difficult to check whether the suppliers are fulfilling their obligations. According to the report, 29% of businesses say they must improve compliance.

Solution:

8Manage SRM enables users to develop key performance indicators, record supplier performance details, and easily check whether suppliers are meeting expectations and complying with contract terms. Its procurement module clearly displays general information about suppliers, supplier contracts and terms, so it is easy to order from the right supplier and track compliance in the process.