Nowadays, one of the key aims of businesses in terms of procurement digitization is enhancing the transparency of procurement activities. This article elaborates on the key benefits of digitization of purchasing activities and explains why digitization of procurement is something that businesses should strive for.
With the digitization of procurement activities, information about purchasing spend becomes available at the touch of a button. Therefore the reviewer can easily discover which goods or services have increased in price by looking at the built-in reports. Also, the manager can review the criteria purchasers use for supplier evaluation. Consequently, transparency comes with digitization and automation of procurement.
However, some businesses are trying to attain transparency bypassing procurement digitization:
But in real-life situation approaches that were developed for enhancing transparency in procurement is not working as it was planned due to a lack of control over compliance with regulations. In addition, the reports can be incorrect or purposely biased.
Human factors can be a barrier to the digitization of procurement and obtaining transparency. People can simply forget to do something, lose information, make mistakes, etc. Automating all parts of the procurement processes means bringing the influence of the human factor to the minimum.
A sustainable E-Procurement platform enables businesses to digitize all stages of the procurement process:
Requisitioning – Collect purchasing requirements from employees and departments without any paperwork and complicated approvals and include them in procurement plan.
PO processing – quickly generate POs for specific needs and send it to the suppliers. Indicate goods and services for the POs, set the delivery terms and identify delivery timeframe.
Contract Management – control the contract execution, document important events and record the violations to detect unreliable suppliers. Ensure the compliance.
Sourcing – run various sourcing events using pre-established evaluation criteria and algorithms. Information on purchases and the outcome of the sourcing events are documented.
Supplier Management – quickly onboard suppliers and document communication with them in one place. Develop own supplier database and get rid of unreliable suppliers.
Approvals – create an algorithm requiring internal approval by a manager or any other staff member responsible for organizing procurement through certain entities (e.g. contracts, POs) containing specified goods and services, starting at a certain amount, or delivery terms.
Analytics – analyze the spendings and generate reports for the review of managers within a few clicks. For example, Acquirell, contain dozens of reports that are generated automatically.
Implement Acquirell to your business processes and enjoy utilizing a reliable E-Procurement Platform!
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