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Top advantages of using technology in the procurement process

By Expert commentator 18 Jun, 2019
Essential

When you use technology in your procurement process, it saves you a lot of time, which could improve e-commerce stores' performance

The procurement process is not simple and straightforward. It’s complicated. The manual procurement process is very labour-intensive, time-consuming, and involves a lot of paperwork.

On the other hand, when you use technology in your procurement process, it saves you a lot of time. It makes the whole process much simpler and hassle-free. These are just a few of many advantages of leveraging technology in the procurement process

Before talking about the key advantages of using technology in your procurement process, let’s quickly look at the most common issues in the procurement process.

Major issues with a procurement process

Companies face problems in their procurement processes because of an ineffective process. It also leads to the occurrence of human errors in the process.

The following are some of the most significant procurement issues that can affect your business:

  • Although it can solve half of your procurement related issues, it’s a challenge to identify a high-quality vendor for your business.
  • Redundancy and inefficient procurement processes often result in disorganized data management. A chaotic data management system will further invite problems like the duplication of payments or delays in payment.
  • If there’s redundancy in the procurement process, it may lead to an increase in average supplier lead time.
  • There are high chances of companies ending up with low-quality materials when they don’t track or inefficiently track the quality of incoming materials.

It’s difficult for companies to prevent fraud and duplication of contracts. That’s because they have an ineffective fraud protection system in place.

So what are the advantages of using technology?

1. Improves efficiency and speed

Technology can help you increase the efficiency and speed of your procurement process significantly, resulting in time savings.

Important tasks can be dealt with using technology instead of getting a person to do them. This reduces the work of your procurement team and gives them more time to handle more complex tasks in the procurement process.

2. Decreases the average cycle time

With a manual procurement process, your team likely spends most of their time drawing up and reworking contracts. However, with the help of technology, you can use online purchase approvals and order templates. You can easily make minor required changes and create contracts that are suitable for your company.

You can leverage technology to store your existing contracts and reuse them whenever needed rather than working on a new one every time.

3. Eliminates manual document storing system

A manual procurement process often leads to a lot of paperwork and those papers eventually pile up. It can be difficult for your procurement team to search for and track a single expense document. Also, it’s not easy to organize and store these papers.

That’s why it’s important that you leverage technology and completely eliminate your paper-based storing system. When you use a paperless information and data storing system, it will help you and your team in many ways. For instance, it will become much easier for you to organize, access, and track your documents whenever you want.

4. Makes your procurement process transparent

With the help of technology, you can conduct audits effectively. An audit will give you 360-visibility, and increase the transparency of the whole process.

This will make sure that there’s no misuse of your budget and that it’s spent on necessary and relevant services and/or products. With the help of technology, you can measure your KPIs more efficiently and effectively.

5. Increases data accuracy

Some 48% of the companies agree that manual data entry and an inefficient process is one of the top workflow process challenges. It results in inaccurate data entry. Which, in turn, can increase the chances of errors in the procurement process.

However, you can address this issue with the help of automation. Automation will help you streamline the data process. As a result, you will witness a decrease in errors and a significant increase in the accuracy of data.

It helps you keep all of your data and documents organized so that you can easily and quickly track any vendor’s contract. Technology also helps you create a more transparent procurement system.

To learn more about how you can deal with procurement issues with the help of technology, check out the infographic created by PurchaseControl.

Major Procurement Issues & How to Fix Them with Technology

Image courtesy: PurchaseControl

 

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