According to a report, more than half of the companies are moving towards cloud procurement systems and all for a very good reason. Legacy systems and manual processes aren’t equipped to handle complex modern procurement processes. They don’t just slow down the process, but also introduce discrepancies.
By moving to a cloud procurement system, organizations are able to eliminate inefficiencies and streamline end-to-end procurement workflows.
What is a procurement system?
A procurement system is a cloud-based software solution that helps organizations manage and optimize their purchasing processes. It automates tasks such as supplier selection, contract management, purchase order creation, invoicing, and inventory management. This improves efficiency, reduces costs, and ensures compliance.
It helps manage all the procurement-related processes, including:
- Sending purchase requisitions
- Generating purchase orders
- Selecting and managing vendors
- Approving delivered goods/services
- Reviewing invoices.
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Benefits of a eProcurement system
1.Improved speed
With automated workflows that move data through various steps—with little or no human input—information is processed faster. This way the processes are streamlined, manual errors are eliminated, and approvals are easy to come.
2.Better visibility
In a few clicks, an automated procurement system can provide a detailed breakdown of the spend on a particular set of supplies within a given frame. This provides an excellent opportunity for cost comparisons when choosing vendors, visualizing opportunities for cost savings, or making other strategic decisions.
Learn more: Why companies choose Kissflow over others?
3.Efficient business transactions
When processes are streamlined, manual errors are eliminated, and approvals are made faster, every part of the organization benefits. It’s easier to run through transactions faster when all supporting systems run faster, and as a result, business outcomes can be achieved on target every time.
4.Eliminate manual errors
An automated procurement system reduces manual human input to the bare minimum — to just a few places where a human staff must sign off. As a result, manual errors drop to just a fraction of what they’d have been if you were operating with paper forms & spreadsheets.
5.Enforced compliance and guided buying
eProcurement tools are designed to assist employees to stay within procurement policies and guide them on the supplies they can purchase, limiting them to those from carefully vetted and approved vendors.
5.Better supplier relationship
eProcurement software offers a simple solution for tracking vendor performance so a business can decide if and when to take actions to protect itself from unsatisfactory vendor behavior.
Features to look for in a procurement software
When it comes to finding the right online purchasing system, you should start the process by listing your business requirements, and then look for a tool that matches those very requirements:
Customization
There’s no one-size-fits-all in the world of procurement. Modern procurement tools are designed to permit a vast range of use cases so organizations of all sizes and business types can customize them to fit their needs.
Approval workflows
Pre-approve tasks for processes that require explicit permission from key members of your organization with Approval workflows. For cases, where workflows get complex, it’s ideal to have sophisticated procurement software with predefined rules.
Three-way matching
An automated Three-way matching system eliminates fraud by cross-checking invoices, purchase orders, and goods receipts before issuing payment to vendors.
Cloud hosting
Self-hosting your procurement software is an outdated process with a high risk of malware. Cloud-based procurement software on the other hand offers endless possibilities, while also offering data security.
Spend reporting
Spend reporting tracks your company’s spend footprint and ensures that you’re channeling your budget to where it makes the most impact.
Vendor management
Vendor management helps you to assess vendor performance, check order status, manage your contracts, e-invoicing, and onboard the vetted suppliers.
Integrations
Procurement is simply one piece in the huge puzzle of systems you need to solve in your business. Many procurement software tools (like Kissflow Procurement Cloud) tie a good number of them together so you can work seamlessly across platforms.
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Kissflow Procurement Cloud is a cloud-based flexible procure-to-pay software that helps companies streamline their procurement processes end-to-end, from requisitions to invoice processing to supplier management. It’s smart, flexible, and easy to use. It is ideal for companies that are either transitioning from manual procurement management tools or replacing disparate point solutions. With Kissflow, organizations can improve efficiency, mitigate risks, and eliminate the guesswork in making purchasing decisions.
