How Procurement Really Works
Once upon a time, there was a man with a passion for widgets. His name was Michael. Michael decided to open his own store and call it ‘Widget-Palooza.’ Initially, Michael guessed at how many widgets he should have in-store so that his customers could buy all the widgets they wanted.
One hundred widgets sounded reasonable to him, so he went to the only supplier he knew, ‘Widget Warehouse’ and requested 100 widgets.
As time went on, his customers started to recognize that his service was superior to the other widget options in town, so his business started to boom. He found himself incredibly busy as he was constantly ordering 100 widgets at a time. Michael realized he couldn’t run Widget-Palooza alone. So he hired Sara.
Sara started by reviewing Widget-Palooza’s sales history. Luckily, Michael kept very good records even though he had to painstakingly track everything in a simple Excel spreadsheet.
With the sales records, Sara made sure that Widget-Palooza never went out of stock and that they never had too much money invested in overstocking. But Sara knew a lot more about running a business than just keeping good inventory because Sara is a procurement professional.
Procurement and Sourcing
Sara is Widget-Palooza’s Chief Procurement Officer. She didn’t just fill the same old orders for widgets, but made sure they were providing the most reliable, high-quality widgets available in their budget. After researching supplier options, Sara chose the best supplier and negotiated an agreement. As the sourcing improved, Widget-Palooza expanded, opening many stores in surrounding cities.
As their demand increased, personally talking to different suppliers became burdensome. She needed a way to compare multiple suppliers all in one place.
Because Sara has a strong network of procurement professionals, she began to learn more about ‘cloud procurement.’ She found out that e-procurement platforms, like Vroozi, allow users to compare products from many suppliers side-by-side all in one place.
And she can even communicate with suppliers right on the procurement platform.
Maintaining sales records through Excel became a colossal task. Sara constantly dealt with Purchase Orders, Good Receipts and Invoices. Sara preferred to focus on creating a better strategy to make sure that Widget-Palooza was successful, but she was constantly buried under paperwork.
She learned that her Vroozi platform could automate all the tracking of POs, Goods Receipts and Invoices. Moving her mundane paperwork tasks to the procurement platform meant she could focus on what she does best and enjoys best. She also found that the system automatically compares the data from POs, Goods Receipts and Invoices, so she immediately knew about any inconsistencies.
Another big issue Sara faced was getting approvals from Michael before placing a large order. With so many new stores opening, Michael was always on-the-go. So when Sara found out that Vroozi’s procurement platform also automatically routes approvals to the appropriate party, she was ecstatic. Approvals are not only automated, but also available on mobile and tablet devices so no matter where Michael was, he could quickly approve orders with one click on his smartphone. So Widget-Palooza never had approval issues again.
Sara is constantly looking for ways to improve so she was thrilled at the powerful data supplied to her through the procurement platform. She was excited to see that the data and graphics were all neatly organized into legible graphs with data that made a real difference in their procurement strategy.
With the power of a procurement platform like Vroozi, Sara is able to help Michael build Widget-Palooza into a stable, growing company. Sara can use her expertise to focus on strategy while the procurement system solves the procurement pains that so many professionals experience. With Sara’s expertise and the power of e-procurement, they all lived happily ever after.
Learn more about Procurement at Vroozi. And try out the Vroozi procurement platform, free for 30 days >>