Sustainability requirements, environmental reporting, data-driven decisions and automated processes. The key to being competitive and successful in all of these areas is effective digital operational purchasing processes. And that's what you get by implementing a purchase to pay system (procure-to-pay).
But how do you know if your organization is ready to implement a procure-to-pay system?
If your purchasing activities are becoming increasingly complex, with multiple stakeholders, approval processes and different purchasing channels, there are huge benefits to be gained from a streamlined and efficient digital purchasing process.
You will shorten lead times, clarify approval processes, ensure transparency, get more efficient processes and actually reduce human error.
Everyone can make mistakes, but preferably not - as we say. That's what a power white purchasing system will help you with.
You have a lot of repetitive distribution work. Managing a high volume of purchasing transactions, including recurring orders and multiple suppliers, can be overwhelming.
A purchase to pay solution automates and manages these transactions efficiently, providing better management and visibility.
You can simply automate away large portions of your volumes without human intervention through smart features built to handle large volumes of transactions and find discrepancies that require a human eye to determine processing.
Have supplier relationships become cumbersome to manage with frequent catalog updates and new agreements to be implemented but it is difficult to get the organization to both understand and do the right thing?
A purchase to pay solution can centralize supplier information, making it easier to maintain and improve relationships. There are smart features to help you with supplier integration, automated catalog updates, and anomaly detection capabilities.
Plus, with all the data in one system, it's much easier to have an informed discussion with suppliers about what's working and what needs to be improved! One-stop-shop for the organization makes communication straightforward and clear - here they find all information regarding purchasing in the same solution!
If unauthorized or non-contractual purchases, also known as maverick purchases or wild purchases, happen too often, it's time to take control.
You need to know who you are buying from and check that they are sustainable and ethical suppliers. That the purchases are not based on corruption or otherwise irregularities.
A digital purchasing system provides better control - everyone who buys can be sure that they are buying from approved, fair suppliers! By setting up rules and warnings, it is also easy to control, for example, minimum order values or other contractual restrictions.
Your organization can aim for cost savings through improved negotiations and reduced purchasing cycle times.
By implementing a Purchase to Pay system, operational efficiency increases enormously, resulting in significant cost savings. In addition, it is easy to get a really, really high percentage of e-invoices, which in turn is the prerequisite for automated transactions and short lead times from order to payment.
Lack of visibility of spend across departments or regions can make financial planning difficult.
A digital procurement solution offers comprehensive reports and provides insights into spending patterns, which helps in strategic decision-making.
Access all purchasing and invoice data directly in the interface or connect with your BI system. With all orders digitalized, you get insights that help in wise decision making.
A file here and a file there. Start importing there and not forgetting here.
With the need to integrate purchasing processes with ERP systems or other financial tools, a procure to pay solution offers seamless integration capabilities via APIs, ensuring all systems work together in harmony.
You can stop duplicating work and be sure that data flows correctly between systems.
Finally, if your team is comfortable with digital tools and shows a readiness to embrace new technologies, it's the right time to implement a solution also for operational purchase to pay.
Employee readiness can ease the transition and maximize the benefits these systems provide.
Getting the organization on board and willing to change can be a difficult hurdle to really work on. But if you're already there, and longing for new ways of working! Go for it! Half the battle is already won!
If you recognize some of these signs above, it might be time for a digital shift in the operational purchasing area.
As always, our team at Proceedo is here to support you every step of the way. Don't hesitate to get in touch to learn more about how we can help in your digital procurement journey.