The growing benefits of e-Procurement software have rapidly changed the way the electronics industry conducts business across their supply chain. With constantly changing customer demands, supply chain stakeholders who’ve traditionally relied on manual processes are increasingly concerned about adopting an automation solution.
Adding to this, the expectations of time, inventory, and distribution data requires them to transition to online procurement processes which in the beginning can disrupt their day-to-day business operations.
Even though implementing an e-Procurement system may initially be intimidating, the right software modernizes your workflows and offers substantial benefits to electronics manufacturers. Below we’ve mentioned a few benefits that the electronics industry manufacturers can get by adopting e-Procurement software.
Improves Spend Visibility & Reduces Costs
Electronic manufacturers’ business database consists of crucial information including purchase orders, invoices, processed payments receipts, and more. The electronic procurement software digitizes all the essential documents and reports involved in the Purchase-to-Pay (P2P) cycle while eliminating the costs involved in paper processes.
It centralizes all your business data and enables you to generate full reports on requisitions, order processes, items purchased, and payments made. The software allows you to track your vendor service level agreements by identifying and addressing any gaps in the processes.
The software automatically verifies each contract to ensure it’s in compliance with existing regulations. It also automates most manual processes and reduces the errors associated, minimizing the need for implementing expensive procedures such as; dispute investigations, reworking errors, or searching for resolutions.
Automates Tedious Processes & Improves Productivity
The software reduces the amount of time required to complete various time-consuming tasks like re-ordering products, invoice generation, approvals of POs, and bill payments. By automating most of these tedious business processes such as data entry, paper processing and approving, procurement software frees staff from various tasks, allowing them to focus on high-impact activities.
Speeds up the P2P process
Procurement software stores documents digitally in a cloud-based platform, allowing you to access the data regardless of the time or geographical location. It takes less time to track down the right documents and speeds up the contract compliance checks to minimize any potential errors.
As most of the processes in the P2P cycle are automated, POs can be approved seamlessly. Guaranteeing your vendors are paid on-time, ensuring a good working relationship with not only your stakeholders but also your partners.
Transparency & Real-time Analytics
By automating processes, an e-Procurement software solution helps eliminate human prone-errors associated with manual processes, which can take hours to find and fix. It centralizes all the crucial business data and provides an end-to-end transparency into the supply chain which allows you to track the procurement cycle, accurate inventory information, POs, and invoices all in real-time.
To Sum Up
Automating procurement functions has become a necessity for businesses to stay ahead of their competition and improve productivity. From extracting the purchase order details to getting them approved.
A procurement solution automates the procure-to-pay process, thereby helping companies gain both tangible and intangible benefits. It delivers transparency, spending compliance & controls, minimizes costs, improves process efficiencies, and enhances overall productivity.