To be competitive in the modern world, businesses are forced to manage their major processes more tactically, and procurement is one of them. The change in an organization’s thinking has signified the importance of generating more cost-savings and looking at the procurement function holistically. Here, we present a few important reasons why modern businesses need to implement an integrated procure-to-pay system.
The procurement process generates lots of data at multiple stages – during sourcing, managing suppliers, buying, invoicing, spend analysis, payments and savings tracking. But, the raw data gathered adds no value. To maximize savings, this data needs to be changed into actionable insights. An integrated software solution provides useful insights that can easily be incorporated to act on the data generated at various stages.
Higher Employee Adoption
Having the best software solution to work with is good, but, what makes it great for a business is that the solution is used by a good number of employees. One of the main elements enabling higher employee adoption is a user interface that is not only easy-to-use, but also consistent across modules. Additionally, a high employee adoption rate leads to higher ROI.
Entering accurate data is crucial for an application to perform properly. In the case of several suppliers, whenever data is entered or updated it requires being duplicated across all modules individually. This can increase the risk of data inconsistency significantly. An integrated system is free of such issues. There is no duplication needed as data entered or updated once is reflected across the entire solution.
Easy Access for Vendors
One of the major concerns with having various suppliers is getting them to use the solution. With a standalone system in place, vendors need to manage various log-in credentials and explore solutions based on varied UIs.
An integrated solution makes life simpler for them as they have a single unified platform that is accessible through a single log-in and based on a consistent UI. The portal can be used by vendors to review their scorecards, participate in performance surveys, share information, track contract compliance etc.
A comprehensive suite not only makes collaboration with suppliers easy, but also enables better relationship management. This is mainly critical for modern businesses as suppliers act as a source of knowledge used to achieve a competitive advantage.
The sophisticated dashboards of a procurement system help save time and monitor what is happening in the process. All the data is available in a single location that can be accessed with a few clicks.
A robust procure-to-pay suite helps the purchasing process to become more efficient. It acts as a one stop shop to maximize cost-savings and enable procurement staff to meet their strategic objectives.