- July 19, 2019
Improving Vendor Sourcing and Procurement Management with Digital Tools
There was a time when a business’s sourcing and procurement duties was handled via phone calls and written documents. While there’s nothing wrong with that necessarily, today’s companies are much better off using the digital tools now available to them. With the arrival of the internet, companies quickly started utilizing email and websites, and have now progressed to managing their procurement systems entirely online. These modern techniques even make it possible to update orders and fix problems via mobile devices. All you need is a connection to the internet to perform many of the same functions that used to require a full-time staff. If you’re not taking advantage of these new technologies, here are some ways you can benefit from using sourcing management software.
Better Spend Visibility
One of the primary benefits of relying on digital tools to manage your procurement is it gives you the ability to manage how you spend across all your suppliers and to do so from a centralized location. This allows you to perform sophisticated analytics so you can examine inefficiencies and places where you can save money. Having the ability to closely track your vendors also means you’ll be able to monitor their contract compliance, further increasing productivity while saving you money.
A Global Approach
As the world becomes more interconnected, you need to manage your procurement to take full advantage of the benefits that come with a global economy. The best sourcing management tools can support all the languages, currencies, and logistic choices that one will find internationally, opening up a wide variety of sourcing options for your business.
E-procurement technology is a means of running extremely complicated procurement logistics through a single program. By automating much of what once used to be done person-to-person, the efficiency of the sourcing process increases dramatically. The less you have to manage personally, the more time you can spend on other aspects of your business. Furthermore, without the possibility of human error in your procurement, more energy can be spent on the execution of the internal processes rather than correcting mistakes.
Sourcing software creates order in the procurement process and decreases the instances when vendors and shippers have to deviate from said process. This has the advantage of eliminating waste and the consequences of human error, and also makes it easier to track shipments. With contracts and orders stored within the system, referencing them is simple and can be done at any time. It helps you stay with the same schedule as your vendors as well, ensuring that they’ll be paid on time and will receive the documentation they need to do their job. Not only does this allow for a business to run smoothly, but it guarantees a positive relationship between you and your vendors up and down the chain.
While it might seem challenging to move your entire operation over to sourcing management tools, once you’ve fully transitioned to digital sourcing, you’ll be amazed by the difference it can make to your business. To learn more about how total sourcing management software can help your company grow, contact the experts at CBX Software. Contact us today to learn about pricing or to schedule a demo.