Conventional procurement systems require the coordination of workers to take care of piles of files that will be needed such as purchase order documents, invoices, contracts, delivery, receipts, and many more.
Such a conventional procurement process has many drawbacks that will affect the effectiveness of your business.
The points below are factors that hinder the optimization of the procurement process:
- The number of paper documents piled up
- Repeat orders
- The number of suppliers to be organized
- Inaccuracy of inventory data due to employee error
- A process that is often neglected due to the tendency to tackle work that is considered an emergency first
- Requires approval from many parties at different levels
- Long execution time
If you experience the things above when conducting the procurement process, then it’s time for you to switch and implement sourcing software in your business.
First, your procurement system will be automated. You no longer need to bother repeating all the procurement processes continuously.
Time for the procurement process can also be streamlined so that the parties involved can allocate their time for other things in your business management.
You can also save costs because paper and printing press are no longer needed. Therefore, in addition, you have implemented an environmentally friendly procurement process.
The quality of the ordered goods can also be controlled because all the descriptive information of the goods can be seen in the catalog. This is possible because the customer can do an easy search and research about the specifications and advantages of the goods needed.
Advantages of e-sourcing over conventional procurement of goods and services
As a strategic sourcing solution to simplify complex and convoluted procurement processes, sourcing software has a number of advantages that conventional procurement of goods and services does not have, namely:
Easy
The first thing that is the advantage of sourcing software is that the process is easy. Through e-sourcing, companies can search, compare and select vendors that suit their needs and budgets directly through online catalogs. So, there is no need to search for price vendors, record and calculate prices from vendors manually, or perform other complicated processes.
Transparent
The next advantage offered by e-sourcing is transparency. Through this system, all authorized parties can access it easily online. Thus, the ongoing procurement process can be ensured that it is always well monitored and controlled. Issues such as conflicts of interest or misuse of budgets for personal gain can certainly be minimized.
No Barriers
Sourcing software changes the approval, billing, and payment confirmation systems so that it can be done anytime and anywhere online.
Safe and Trusted
Sourcing software provides a safe and trusted platform for companies and suppliers. Through the ease of the system, processes that work transparently, without obstacles, and can be controlled by all related parties, this electronic procurement of goods and services is the best solution to answer procurement problems in companies or corporations that are still carried out conventionally.
Conclusion
With procurement processes made easy by strategic sourcing solutions, your business will benefit a lot.
E-sourcing is an innovation from the traditional paper-based procurement process. By applying sourcing software, you can manage all procurement processes from item identification to making procurement reports much easier and faster. The selection of reliable sourcing software that is integrated with other business functions will facilitate effective and optimal management of the procurement process.
