The concept of procurement is simple: your company has a need, you source a supplier, and you make the purchase. The truth is that there are many intricate details that go into the supplier/purchaser relationship. If you want your company to save money on your purchases so you can increase profits and run a better business, there are many tactical considerations.
The issue is that only 40% of procurement organizations use automated procurement tools. Even worse, 67% of those companies with tools feel they’re not reaping the full benefits of their software; this is a serious problem for your business procurement. When your procurement team has to waste time on tactical work including responding to contract requests, managing supplier communications and analyzing spend, they have less time to be strategic.
Sourcing managers without the right data have a difficult time making decisions that positively impact the bottom line because they have to rely on anecdotal evidence instead of hard facts. In addition, organizations that don’t have tools or sourcing strategies to analyze their spend, end up investing a significant amount of time preparing data to make the necessary strategic decisions. When instead they could be spending that same time to identify savings opportunities.
If your business doesn’t have the right tools in place to help with the complicated procurement process, you’re not only wasting time, you’re impacting your decision-making ability and exposing your business to risk. Instead, to simplify the procurement process, you should break down barriers to internal communication.
New technologies have empowered internal collaboration, allowing your procurement team to avoid tactical activities, such as endless “alignment” meetings that have limited substance. Collaborating across functions and business units can help ensure that every team member in your business is on the same page when making a deal and communicating with the supplier.
By implementing an internal collaboration tool that allows messaging and file sharing, you can quickly communicate internally without clogging emails and share files without having to search for the appropriate data. The increased transparency that comes with internal collaboration can help your team better understand the needs of your suppliers and customers, spot new opportunities for profits and more easily communicate value without wasting time in meetings or emails.
Technology, such as Vroozi’s Mobile Procurement software, also opens up external communication, cutting down on tactical considerations such as travel time, with easy-to-follow directions, purchase order completion and integrated ERP systems. When you can rely on one tool for the entire procurement process from start to finish, your team can spend more time thinking strategically and less time completing all the steps.