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Frequently asked questions

How to develop a procurement strategy?

Every organization has unique needs, so there is no one-size-fits-all procurement strategy. Let’s discuss a few steps you can take to develop your own.
Difference between procurement and strategic sourcing

Whereas procurement involves all activities required to fulfill an organization’s needs, strategic sourcing focuses on improving the sourcing of goods and services.

How does procurement software work?

Procurement software consolidates procurement processes to a central platform
What is procurement software?

Procurement software is a sophisticated automation solution that digitalizes the procurement process and brings it to one platform.
What is source-to-pay?

Source-to-pay or S2P is used to express the entire process involved in procurement. Starting from identifying and negotiating with a supplier till the delivery and the payment for those items.
How to manage procurement risks?

A full-featured e-procurement system like Kissflow Procurement cloud could be the best option to minimize possible procurement risk.
What is category management in purchasing?

Category management is a procurement strategy in which items of similar spend are segmented together as a group
What is spend analysis?

Spend analysis is the process of collecting info about procurement spend and analyzing it through analytical tools to identify opportunities to reduce costs, increase efficiency, and drive value beyond savings.

What is e-procurement?

e-procurement is the process of buying and selling goods and services over the Internet.
What is a procurement card?

A procurement card is a type of company charge card that lets you procure goods and services you need without having to follow the traditional.
What makes good procurement software?

Good procurement software should make your life easier, but first things first, it should be easier to adopt.

How to measure ROI in Procurement?

Unlike traditional ROI, which is evaluated purely on sales, procurement ROI is assessed by comparing department expenses to the overall savings it delivers for the entire business, financially and operationally.

How to reduce costs with procurement spend analysis?

With the help of procurement automation, you can eliminate tiresome, mundane, and repetitive tasks that are prone to human error. This reduces time taking processes, duplication of data and aids in cost and time savings and identification of gaps.
How can procurement enhance business profitability?

Reliable and efficient procurement processes tend to create more significant revenue and profits for businesses.
How to reduce costs with procurement spend analysis?

Spend analysis allows firms to acquire a better knowledge of the prices of products and services and the most costly suppliers
How should you measure procurement performance?

You could measure your procurement performance through different metrics and we have listed a few of them below and the best way to simplify this process is by adopting
What is procure to pay in accounts payable?

The procure-to-pay process - also known as the P2P cycle - involves the entire workflow within procurement
What are the challenges in the procure-to-pay process?

The challenges in the procure-to-pay processes are rooted in a lack of data and transparency, redundant manual tasks, and inefficient communications.

What is the difference between procurement and contract management?

The challenges in the procure-to-pay processes are rooted in a lack of data and transparency, redundant manual tasks, and inefficient communications. The typical difficulties include uninformed decisions
What is indirect procurement?

Indirect procurement refers to procuring goods and services that do not directly impact the end product that an organization produces.
What are the examples of direct and indirect procurement?

Procurement departments use direct and indirect procurement processes to fulfill contrasting organizational needs.
What are the benefits of eProcurement?

Electronic procurement allows departments and teams to remotely access all procurement-related data for oversight.
What is a procurement plan?

A procurement plan is a document that lays out the need for the product within a project and justifies enlisting an external supplier.
How to solve procurement challenges?

Common procurement challenges include human-errors in manually entering the data, duplicate invoices, slowed down approvals..
How to automate the procurement process?

You need to begin by modeling your current procurement process. This will let you identify any repetitive, time-consuming, and error-prone tasks that can benefit the most from automation.

How to improve the procurement process?

The procurement process mainly suffers due to the lack of visibility, communication issues, scattered workforce, and inefficient work methodology.

What are supply chain and procurement?

The supply chain constitutes a network of entities and resources involved in the creation and sale of a product.
How to improve the procure to pay cycle?

The procure-to-pay cycle mainly suffers from time-consuming, redundant processes, communication delays and errors, lack of transparency, scattered processes, and human errors.

How to make procurement more efficient?

Procurement processes can only be made more efficient once the problems in them are identified clearly. These usually include lengthy, menial proces
How to measure procurement KPIs?

All KPIs have different calculation methods, so you need to shortlist the KPIs that correspond with the processes you want to track first.

How to measure procurement performance?

The most effective way to measure the performance of any operation is to look at numerical information.
How to measure cost savings in procurement?

Your organization’s cost savings are a measure of the savings made when the procurement team secures goods and services at lower prices.
How do you keep track of all purchasing activities?

Keeping track of purchasing activities through manual means is an ordeal - it’s resource-intensive, error-prone, time-consuming, and does not have a guaranteed success rate.

What is the main purpose of a procurement audit?

Audits are official inspections of a company’s accounts. Procurement audits ensure that procurement processes align with the company’s policies and procedures and are not corrupted in any way.

How to optimize the procurement process?

Conventionally, the procurement function has been dominated by time-consuming, redundant, obscure, and error-prone manual processes without sufficient oversight.
Purchase-to-pay vs. Procure-to-pay

There is no difference between the terms. Both refer to the P2P cycle that begins as a Purchase Requisition is raised and ends as the payment is dispatched to the supplier.
How to implement centralized purchasing?

Purchasing processes are said to be centralized when all purchasing-related decisions and their execution falls under one central team’s – the procurement team’s – responsibility.
How to make a procurement plan?

You’ll need a procurement plan to justify the need for an external supplier and manage the vendor identification and selection process.

What are the documents used in the procurement process?

Keeping track of purchasing activities through manual means is an ordeal - it’s resource-intensive, error-prone, time-consuming, and does not have a guaranteed success rate.

What Are Two Advantages of the Procurement Integrated Enterprise Environment?

Like any other procurement software, Procurement Integrated Enterprise Environment (PIEE) aims to make an organization’s procurement work processes and internal communication efficient and effective without increasing IT complexity

How to manage a procurement system?

Here are some basic steps that you can follow to manage your procurement system effectively:
How to choose the right procurement method?

The right procurement method for you will depend on the context you’re ordering in. let’s go through a few example situations.
What are the best procurement strategies?

The best procurement strategies are ones that simplify your complications and streamline the procurement process.
What is a procurement policy?

A procurement policy provides a framework under which such needs are to be met.
How to improve the procurement department?

Conventionally, procurement departments have been dominated by scattered processes and inefficient communication channels.
What is the difference between direct and indirect sourcing?

In procurement, sourcing is the process used to select suppliers and build contracts with them. This includes need identification, market research, vendor selection, negotiation, and assessment of supplier performance.
What is the source-to-pay process?

The source-to-pay process is an extension of the procure-to-pay process. It begins as an organization attempts to find suppliers.
What is RFQ in procurement?

Once a procurement team approves a Purchase Requisition, they move on to find a suitable vendor to raise the Purchase Order to. For this purpose
What is the sourcing process in supply chain management?

As the need for an external supplier arises, the procurement team has to identify relevant vendors.
What is the difference between RFP and RFQ?

RFP stands for Request for Proposal, whereas RFQ stands for Request for Quote.

What is the accounts payable process?
What is accounts payable?

Accounts payable is money owed by an entity to its vendors/suppliers for the goods and services received. It is recorded on the balance sheet as a liability as the purchases are made on credit and not by paying upfront
What is three-way matching in accounts payable?

Three-way matching is a process that takes place before the supplier's invoice is paid.
How to automate invoice processing?

Organizations automate invoice processing through invoice automation software or procurement automation software.
How to manage accounts payable effectively?

Every organization has unique needs, so there is no one-size-fits-all procurement strategy. Let’s discuss a few steps you can take to develop your own.
What is the difference between a sales invoice and a purchase invoice?

A purchase invoice is issued by a buyer after they send the Purchase Order to the vendor.
What is a blanket purchase order?

A blanket purchase order is a purchase order that outlines a long-term agreement between an organisation and a supplier to deliver products or services at a specified price regularly for a set time.
What is a PO and a Non-PO invoice?

PO invoice is when a purchase order has an invoice attached to it
What is purchase order in accounting?

A Purchase Order in accounting is a document sent by a buyer to a seller that details the buyer’s expectations from the purchase.
How to keep track of purchase orders?

Purchase Orders are best tracked through purchase order software..
How to automate Purchase Orders?

Purchase orders are automated through Purchase Order software which makes approvals, status-tracking, record generation, and thee-way matching automatic.

Purchase order vs Invoice vs Receipt

When a buyer places an order with a seller, it does so with a Purchase Order A Purchase Order (PO) is a document sent by a purchaser to a supplier that details the description and quantity of goods, prices, order placement and shipping dates, any discount terms, Freight on Board FOB information, and a signature of the approving authority.

How does a blanket purchase order work?

A Blanket Purchase Order is a standing, recurring Purchase Order. It is used when an organization needs the same quantity and type of items repeatedly over a period of time.
How to set up a purchase order system?

A PO system manages purchase orders, tracks them, and generates records automatically.

What is a purchase request?

A purchase request is a request document sent internally from a department to the procurement team for purchasing a specific good or an item.
What is a purchase requisition?

purchase requisition is an internal document created by an employee within the organization while raising a request for a purchase of goods or services.
How to improve supplier relationships?

Smart onboarding, transparency into processes, mutually beneficial deals, and timely payments are the key to improving supplier relationships.
Why vendor management software is important for businesses?

With Supplier Management Software, you can Easily track suppliers, detect unplanned expenses and regulatory compliance risks, and take required steps to eliminate them using a centralized..
What is the process of vendor management?

Vendor management is made up of strategic activities that organizations use to collaborate and coordinate with vendors.
what is supplier management in procurement

Every organization has to navigate through several suppliers to source relevant goods and services. These have varying risks associated with them.
How to improve supplier relationships?

Smart onboarding, transparency into processes, mutually beneficial deals, and timely payments are the key to improving..
How can an organization manage its suppliers effectively?

Effective vendor management entails being proactive right from the beginning of the supplier cycle.
How to improve vendor management ?

An organization improves its vendor management as it implements central practices and enhances the existing ones.
How to measure supplier performance KPI?

Different KPIs are measured differently, so the first step is to choose the KPIs that correspond to your business objectives.

What is a vendor management system?

A vendor management system is a tech-enabled platform that helps organizations manage their suppliers.
How to Automate vendor risk management?

Vendor risk management can be considered a type of third-party risk management – is about identifying and mitigating the risks associated with vendors.

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