Broken procurement processes may be costing you money.
Do you know the 7 signs that it's time to fix your procurement process? Do they apply to your procurements? And how can you fix them?
1. You are overwhelmed by managing your suppliers
You must monitor proposals, tenders, requests for information, reverse auctions, certification and accreditation of suppliers, audits, fraud avoidance and many other activities, and you still need to meet your objective of reducing the procurement cost. A BPMS (business process management suite) can bring all of these processes together and give you control over them via monitoring dashboards and predictive analytics.
2. Your purchase orders are going around in circles
Isn’t it annoying that every PO requires some sort of feedback from the accounting team? Spending limits, type of purchases, duplicate POs, and PO‐invoice match all burden the accounting team. Add intelligence to the procurement process, so the system can provide immediate feedback to the user on policy compliance – for example, forwarding a PO to a higher level if it exceeds a set price threshold.
3. Your vendors complain about not being paid on time
Paying a vendor is the last step in the procurement process. Rigorous management requires payment at the right time in order to optimize the working capital requirement (WCR) while avoiding the legal and financial consequences of a delayed payment. It is important to use automated monitoring in the process, to monitor the progress of invoices, and create alerts when there are potentially late payments on the horizon.
See more of our recommendations here.