Your organization’s procurement team has multi-faceted duties. Along with directing and managing the purchasing activity within an organization, the procurement department qualifies supplies that enable your business to achieve objectives. From arranging contracts and communicating with suppliers to managing supplier performance and negotiating discounts, procurement carries a lot of responsibility.
The right digital procurement software can help lighten the team’s workload, improve procurement procedures, and lower costs by up to 45 percent.
A procure-to-pay platform like Vroozi offers numerous benefits that can help your business achieve objectives, including increased spend transparency, on-time deliveries, order accuracy, reduced payment errors, reduced supplier risk, and boosted productivity, contract compliance, diversity spend, and social responsibility. Let’s take a closer look at how procurement can drive objectives.
How can procurement drive objectives?
Objective #1: Oversee and improve the procurement process.
The right procurement solution can help you:
- Choose trustworthy and reliable suppliers that meet the company’s specific requirements (Vroozi’s centralized platform allows businesses to choose from a marketplace of pre-approved suppliers).
- Negotiate savings and discounts.
- Ensure that discounts are used and applied.
- Improve order accuracy and performance management with suppliers.
- Ensure that all employees follow appropriate procedures.
- Develop effective policies and processes.
- Create procurement strategies and structures.
- Reduce the time spent on manual tasks.
Objective #2: Establish and maintain strong relationships with suppliers and other departments.
The right procurement solution can help you:
- Employees can do their own communication with suppliers for order accuracy and on-time delivery
- Make sure that the supplier is performing as expected.
- Access a digital marketplace to make it easier to do business with approved suppliers.
- Use filters to identify approved suppliers quickly and offer options for user agility when things change.
- Create a network of mutually beneficial supplier partnerships to stay competitive and access the best prices and discounts.
- Decrease costs, increase the quality of goods, and ensure that deliveries are made on time through better supplier relationships.
- Reduce risk by only working with approved and preferred suppliers.
Objective #3: Boost contract compliance.
An e-procurement solution like Vroozi can help your business:
- Take advantage of pre-negotiated discounts and savings by only working with contracted suppliers.
- Increase your organization’s compliance.
- Keep the transaction within contracted terms, such as price, payment terms, and delivery details
- Track spend on contracts for volume discounts based on thresholds
Objective #4: Drive company goals.
Digital procurement can help your organization:
- Drive objectives to work and partner with minority-owned vendors, such as veteran-owned or woman-owned companies.
- Support environmental, social, and governance (ESG) initiatives.
- Realize cost savings.
Objective #5: Reduce time spent in the purchase order (PO) cycle.
Up to 43 percent of businesses deal with inefficiencies in their purchase order (PO) procedures, even if they use an ERP system. If they’re missing certain data, purchase orders and invoices can get stuck—requiring more time to move through your organization’s structure. However, digital and automation reduces the time required to create and maintain POs, allowing the procurement team to spend more time on strategic functions.
Objective #6: Achieve higher spend visibility.
Out-of-system buying can lead to a lack of transparency and non-compliance in an organization’s daily, quarterly, and annual spending. However, intuitive digital procurement technology makes it easy for employees to conduct business with approved suppliers within your system. In turn, procurement leaders can clearly see spending patterns, can identify new supplier discounts, and can find more opportunities for cost savings.
Additionally, a solution like Vroozi can automatically create and send POs based on account data and terms from approved and preferred suppliers in the marketplace. Digital procurement will also help improve your organization’s data quality and quantity because employees going “in system” increases the overall volume and quality of reported data. This leads to improved real-time analysis and better, faster insights.
Start driving company objectives with the right procurement solution.
Vroozi’s modern, mobile, and modular platform makes business buying easier. Search for goods and services, submit and approve purchase requests, and send orders with the click of a button. Vroozi Purchase allows you to manage and approve orders from any device at any time. Contact us today for a demo!
