A practical procurement optimization solution can help you manage the entire procurement experience with minimum hurdles. However, you cannot find the right solution without knowing what to look for. To help you with that search, we’ve listed some of the must-haves for a reliable procurement optimization solution.
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Automation
This is the crux of modern business tools. If they aren’t going to relieve you of some of the most tedious tasks, they aren’t worth your time. A process for managing orders, receiving clearances from executives, and simplified tracking should all be included in such solutions. Essentially, a successful solution should eliminate all of the unpleasant aspects of procurement management.
Budget Management
Besides handling payments, one of the most critical aspects of procurement is reporting. You must continuously monitor your spending with every vendor to cut down the costs without compromising your operation.
So, if you plan on buying a tool, it should be clearly better than your old Excel sheet in all of these areas. Look for solutions that can track expenses in real-time, break down each team’s budget, and compare spending patterns to past times.
Most importantly, ensure that you can obtain these items without needing to adjust data yourself. It should be simple to use and accessible anytime you need it.
Order Approval
When a company starts to spend money, someone must be held accountable. In many firms, supervisory permission typically involves an email chain that must be checked after every purchase.
A reliable procurement optimization solution will impose limitations on who may spend and how much they can spend. If it’s a supervisor or executive, you may not need to ask any questions. However, when a low-tier employee places an order, the solution should automatically notify the respective authority and get the approval before going to the next step.
Integration & Collaboration
Procurement, in general, isn’t all that difficult. Making a transaction is simple if you have a reliable source and know exactly what you want. However, it becomes more difficult if you wish to involve others in the process.
Your coworkers don’t have the same level of procurement experience or knowledge as you. They’re also reluctant to read the entire handbook or participate in a lengthy onboarding process only to make several payments.
You need a solution that will guide them through each transaction in a way that is compliant with policy and does not overcomplicate things.
Bottom Line
There are numerous tools on the market, each with its own set of benefits and drawbacks. Some may not be available for your location or may be way too expensive for you. As a result, you’ll almost probably have to shop about. Nevertheless, it’s critical to understand precisely what you need. You need a reliable procurement optimization solution fitting your budget and operational goals. That’s exactly what you can find at Penny. Just contact us and find a wide range of solutions that meet your needs.
