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Why Procurement Is Exciting: How You Can Improve Your Procurement Through Technology

Procurement Tech

People often think of procurement as complex and tedious.

Making sure that a company has paper, and all the supplies it needs to make its products sounds…well, dull.

Let us offer you a different perspective using sport as a metaphor. In American football, a well executed block by a lineman is a relatively boring play. Compared to a quarterback throwing a pass, or a running back getting a first down, a perfectly executed block is mundane. However, those “boring” blocks set up everything else for the rest of the team, and procurement is the equivalent of that lineman making the block.

 When it’s done well, your business can run like a championship team.

And if you are the type of person who is more motivated by the stick than the carrot, consider this: when procurement is done poorly, everyone on your team suffers.

It’s like the American football player missing the block and letting his quarterback get hurt.

In this post, our goal is to give you a few actionable ways you can improve your company’s procurement.

 How to Run a Smart and Efficient Procurement Department

If you want to prevent potential fiascos and fraud, being proactive about upgrading the technology in your procurement department is a smart move.

There’s a silver lining too: the money you spend on procurement will improve the efficiency and effectiveness of your procurement in the long run.

So, it’s reasonable to say that money spent on procurement processes and systems is an investment.

Here are a few ways you can do this.

Supplier management

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A big chunk of your time in procurement goes on managing your suppliers.

You have to find suppliers who:

  • Have the right qualifications and certifications
  • Have high quality standards
  • Have a good reputation
  • Share your company’s values

It can be a lot to keep up with.

Digitisation enables you to manage all these complex relationships at a glance, with minimum manual effort.

Multi-location management

Procurement is all about making sure you have the right products/services when and where you need them. And when you’ve got a boatload of individual items you need to manage across geographies and currencies…things get tricky.

Now imagine you have head office and several secondary locations. How can you ensure that everyone orders the same things at the same price? How do you make sure that you don’t overspend or have items delivered to the wrong location?

Using a digital multi-location management tool makes all of these problems disappear.

Automation

Imagine this scenario: You go out to dinner with your significant other. You spot a dessert on the menu you know you absolutely must try.

So, you order a smaller dinner portion to make sure you leave room for the delectable delight. When it’s finally time to place your order, the waiter regretfully informs you the delicious dessert is not available that evening.

Ouch.

You go home seething, vowing never to visit that restaurant again.

This is obviously not a good situation on a personal level. And on a business level, running out of stock is much more damaging.

Automation software can help, by making use of the colossal amount of information you’ve aggregated over time. Using this data, you can predict:

  • The right time to place new orders
  • How seasonality affects your inventory
  • How special events can impact the demand for your on-hand inventory

Automation isn’t just for inventory management. You can use it for other tasks that impact your procurement process, including initiating and receiving RFPs, keeping track of supplier certifications and ensuring other documentation is up to date.

 Ready To Make Procurement Exciting?

We’ve outlined some new technology that can help make your procurement department, one of the key pillars of your business, more effective and efficient.

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