Summary In the contemporary business environment, digital procurement is becoming increasingly popular and sought after by businesses around the world. The relationships …
Why do businesses need automated procurement software?
Businesses need procurement software to streamline processes to simplify monotonous tasks like the purchase of products, order approval, and automating payments all in one place. The software allows you to centralise data, create visibility into spending, and optimise cash for capital efficiency.
94% of companies perform repetitive, time-consuming tasks, while automation has improved jobs for 90% of workers and productivity has increased by 66%.
Without automation, organisations can face challenges in their processes that can hinder their efficiency, accuracy, and cost-effectiveness. Outdated systems, complex regulations, a lack of skilled professionals, and the need to navigate unpredictable market conditions are common pain points.
Raising the maturity of your operations is no longer an option, but a given. Businesses need strategic imperative if they are aiming to gain a competitive edge.
A procurement automation journey can provide significant advantages such as improved operational efficiency, enhanced cost control, reduced risks and increased visibility into activities.
Why procurement automation?
Automation of the procurement process helps manage costs, boost efficiency, improve productivity and mitigate shortcomings in operations. Picking the right procurement software is key to managing the entire process from start to end.
In manual procurement, human bias and errors can lead to fraud and data inaccuracy which can cause bottlenecks in processes which can lengthen operational cycles.
Procurement automation provides the balance on demand and supply, whilst also enhancing stakeholder relationships. It also minimises errors, increases the quality of work, defines decision-making and improves transparency in overall operations—which is facilitated by automated procurement software.
Data has shown that 97% of organisations believe that business process automation is crucial for digital transformation.
As such, companies are distancing from the manual procurement process and turning towards automated procurement software. A key driver for this development can be recognised as globalisation, increasing the scope and complexity of the procurement process.
What can procurement automation do?
Procurement teams focus on identifying and selecting the best suppliers at the best prices, ensuring the quality of the goods and services reaches the standard. Thus improving supplier performance and contract utilisation, reducing cycle time, accurately evaluating vendor performance, managing risk, and ensuring compliance.
Procurement has led to low-value, repetitive and labour-intensive tasks within these processes to be automated, saving both the time and resources for businesses.
Procurement automation has led to increases in productivity and efficiency because automation eliminates manual errors and dramatically speeds up repetitive task completion.
Automation software creates an integrated and centralised system which allows transparency and accountability on spending across all ends of a hierarchy.
Data has shown that 82% of companies that are highly digitalised manage to create value, while automation has led to improved collaborations between internal and external stakeholders and removed constraints, leading to improved satisfaction among stakeholders.
Leverage the expertise of Kronos Group to elevate and smoothen your business operations.
Kronos Group’s expertise in providing consulting services related to automated procurement software has been honed over years of combined experience on our consultants’ part. This has resulted in our services being recognised across Europe and all over the world.
Our procurement consulting services include;
- Maturity assessments
- Procurement advisory
- Procurement excellence
- Procurement training
- Procurement outsourcing
- Spend optimisation
Kronos Group is a pioneer and trusted leader in digitalisation, procurement, finance, and project management. We leverage industry expertise to analyse, recommend and implement the best strategies, processes & technologies for your business.
Get in touch with us today and explore how we can collaborate to improve your procurement function with automated procurement software.
Fighting the effects of inflation with sourcing and procurement consultants
Stay up-to-date on the latest insights on procurement, finance, and project management.
Summary Strategic procurement has become a necessity in today’s business world and organisations try to remain competitive. Having the right procurement strategies …
Summary The world of consulting has been undergoing a massive transformation and management consulting jobs are experiencing the impacts of these changes. …
FAQ
There are four different types of procurement:
- Direct procurement: The purchase of items that directly impact the final product.
- Indirect procurement: The purchase of items that do not directly contribute to the production of the end product.
- Goods procurement: The material procurement of tangible items.
- Services Procurement: The usage of people-based services that help businesses run operations.
Among popular software that can be used for procurement are Ivalua and Oxalys.
- Ivalua provides a flexible solution, allowing clients to manage their business processes globally in an efficient way and driving collaboration. Ivalua is a relatively robust tool with an abundant amount of functionality, which can be customizable to your business needs.
- Oxalys focuses on ways to improve a company’s long-term performance. It is relatively easy to roll out and the digital solutions are designed to optimise your procurement process. Oxalys allows you to manage spending, get results faster, boost performance and make collaboration simple.
Procurement automation is an added plus to business operations because it helps contain and mitigate operational shortcomings through integration, centralisation and connectivity within the organisation.
