What Are The Benefits Of A Procurement Platform?

Is your small or medium business enterprise still relying on non-compliant manual workflows and paper-based procurement processes? Do you still keep track of everything on multiple spreadsheets or emails that can be lost easily? lf the answer is yes, you are missing out on several benefits a procurement platform can address.

Procurement and purchasing activities are essential to any organisation, be it big or small. An intelligent procurement system allows greater flexibility, maximum control over spend data, reduces error potential and provides tools for easily managing supplier performance and compliance data.

What is a procurement platform?

A procurement platform is a computer program that allows an organisation to automate the processes of purchasing and managing all aspects of procurement on a singular platform. This includes maintaining an inventory, creating purchase requisitions, generating purchase orders, executing the procure-to-pay orders online, matching and approving invoices, paying all bills electronically and implementing contract management systems to ensure compliance, among others.

But what are the benefits of a procurement platform that can help you streamline, automate and optimise your organisation’s procurement process? Let’s take a look in detail..

Centralised access to all your data

In a procurement system, all data is kept in a centralised location that anyone can access (based on user permissions). Procurement solutions have distinct features like finding a purchase order or matching an invoice; this is because you have access to all the metadata which allows you to track all the information. 

Having access to centralised data also allows you to improve your system. For instance, you could track suppliers with whom you spend a lot of money and negotiate better terms. Or, collect data and conduct trend analysis to improve and maximise profits of your organisation.

Great flexibility and control

Procurement platforms allow for greater flexibility and control over every aspect of the procurement process. This includes controlling who can approve and purchase, who can see the details of a transaction, authorise the payments, etc. This discourages instances of internal fraud which can be common in procurement, and makes it possible to recognise and capture value in a variety of ways.

Automation – no human error

Procurement platforms use automation to execute all the processes, including purchasing, inventory, order, invoice and supplier management. So, no more keying in incorrect data in a spreadsheet or failing to save changes of a purchase order!! 

There are even invoice matching capabilities and exception alerts to notify you when your data does not match.

Easy supplier management

Being a digital platform, this platform allows for better supplier relationship management, as you can access all of your orders for a supplier in one place and plan significant cost savings, such as negotiating discounts or taking advantage of bulk orders.

Save money and time

Switching to a procurement platform can not only save your business time, but also create cost savings by eliminating the need for paper and document management, fraudulent spending, removing duplicate or incomplete purchase orders, and ultimately streamlining your critical business processes.

Choosing the right procurement platform that fits your business needs and budget, is no longer a challenge or time-consuming.

To know more about procurement platforms and the various benefits and functions that come with it, compare your business objectives against the features that the software can provide and you’ll be ahead of the game! 

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