Businesses have been investing in procurement technology for a long time in order to create a holistic and strategic approach to the purchasing process. They have turned to eProcurement to minimize maverick spend, minimize expenses, human errors, and enhance supply chain compliance as well as spend visibility. Today, the procurement of services has been rarely included in automation.
This has been pending due to a lack of vendor solutions, which can integrate with the solutions, the complicated nature of services via the procurement team. It needs to be transformed as many business organizations invest in procurement technology, and vendors are under pressure to keep up.
There is an increasing demand for them to connect product offerings to client’s eProcurement software and service quotations as well.
Vendors traditionally depended on face to face meetings and proposals, thus leaving purchasers to update all the information into the procurement software, a method that is not sustainable as business enterprises strive to become more productive. In order to keep ahead in this complicated market, it is a good time for a new approach.
Here we present three signs which show that you are ready to automate the procurement of services.
- Gain Deeper Understanding on What is Being Spent and When
While creating an order, the process does not produce accurate data every time and makes it extremely complex to extract actionable spend analytics. The reason is as a purchaser, you can enter a single line of text into your procure-to-pay solution in order to explain the whole quotation.
When this purchase order goes for approval, quotes get approved based on a limited line of details. It means that there is no line-item information and no insight into cost breakdown.
2. Enhance the Volume of Spend Managed by eProcurement
You have implemented a procurement system successfully like P2P, and have been enjoying the advantages of automating categories of spend. But, suddenly, you noticed that you have a limit to which categories can be automated, and you would like to extend this ability to combine your organization’s expenses on services.
Automating your procurement process ultimately helps to capture spend on difficult services like repairs and maintenance, technical services, marketing event agencies, travel, and more and acquire full compliance.
3. Vendors Lack Access to a Solution Which Can Connect the Existing Quote-building Tool to Procurement
There might be a case when your vendors lack technology. It means that all your services purchasing involving everything from developing software to contractor, agency, and legal spend is liable to be out of your control and visibility. As a category that keeps developing, it becomes more pressing for service vendors to connect to your solution.
Besides putting a stop to the issues connected with the traditional processing of vendor quotations, the connectivity of advanced tech solutions can aid to source new vendors strategically, nurture robust relationships across the supply chain, and receive excellent results.