When working in procurement, how long it takes to procure is one of the common challenges faced.
Procurement is a link in the chain, and everyone doesn't want to see the whole process slowed down, but many times, things tend to develop in a direction that is beyond control. However, there are many ways that businesses can streamline procurement and manage the entire procurement process.
1. Use the right technology
In recent years, one of the most important tools for implementing the right management solution has been e-procurement software. With the right technology, it's easy to streamline processes.
Since eSourcing and eProcurement solutions are likely to be the best way to streamline processes, businesses need to look for the software that best meets your company's needs to get the best results.
With 20 years of experience in the industry, 8Manage SRM's end-to-end procurement management solution has helped hundreds of domestic and international businesses get rid of tedious and error-prone manual processing and handle every purchase spend and payment through an easy-to-use platform. Its features include:
erfx: erfx"x "Requests for information, proposals, and **, which means you can use 8Manage SRM software to send RFIs, RFPs, and RFQs, helping to streamline the award process that can be time-consuming for certain categories.
E-Bidding: 8Manage SRM Procurement Management Software allows you to conduct different types of bidding, including second round bidding with feedback.
Business Management: 8Manage SRM makes it easier for you to establish and manage business relationships, centralize business information storage and create simple communication channels.
Warehouse and inventory: Effectively control the movement of materials in warehouse operations, including the receiving, tracking, stacking, and movement of inventory in the warehouse.
Team collaboration: 8Manage SRM makes it easier for you to collaborate with colleagues from afar or perform cross-functional reviews.
Real-time dashboards: Leaders can see all the activities being performed across the organization in the form of visualizations such as charts and graphs, as well as savings or expenses under management.
From demand to delivery, 8Manage SRM Procurement Management Software provides seamless tracking and management of every aspect of procurement, maximizing visibility and control, enabling enterprises to achieve procurement cost savings and improve procurement integrity and efficiency.
2. Collaboration and transparency
Another great way to streamline your procurement is to be transparent with your suppliers and collaborate so that everyone can see all their information and data on the same platform.
Having a reliable 8Manage SRM procurement management software can do both. Being transparent with your business from the start is good for building a good relationship from the start.
8Manage SRM Procurement saves time and effort, with a single source of truth at all times, and data aggregated and influenced in real-time. This way you don't have to waste time looking for files or looking for the latest version of the electronic **.
3. Centralized procurement
Another way to streamline procurement is to centralize procurement within a core group that assists the other groups in their activities. A common strategy for success is for a core group to help execute procurement activities.
This strategy allows most procurement staff to manage local spend while also leveraging the team's best practices. This approach makes it easy to conduct audits and standardize a company's procurement process. At the end of the day, having experts in one central location can also help streamline the procurement process and speed up procurement.
4. Use KPIs to track the procurement process
Tracking metrics to understand the procurement process and its results is also a great way to streamline your procurement strategy. These metrics are known as key performance indicators (KPIs). By establishing and monitoring business KPIs, you can improve your processes, shorten procurement cycles, and increase profits.
Some of the key performance indicators include:
Cost per invoice (CPI): The cost of processing a payment invoice. This KPI tracks the efficiency of the purchase payment phase. Manual processing is associated with higher CPI. Automation improves processing rates and reduces exceptions, reducing the cost per invoice.
Emergency procurement: A measure of the number of unplanned spending events during a period, such as quarterly or annual. These unplanned events can indicate a problem with the original project planning, budgeting, or requisition process. Problems with these processes can fuel unusual spending, increase risk, and reduce capital efficiency.
*Merchant Defects: *Percentage of damaged or non-conforming items in merchant delivery. As with other quoti-focused KPIs, defect rates can also indicate the need to retire a vendor or improve a company's strategic sourcing program.
Summary
In the long run, every minute saved in the procurement cycle can translate into significant cost savings and efficiency gains. Make use of 8Manage SRM in one placeProcurement management softwareIt helps organizations design and manage the procurement lifecycle that is fully aligned with their business objectives.