What Is a Procurement Management System?
A procurement management system manages the evaluation, selection, and creation of formal agreements with suppliers. It also manages ongoing supplier relationships and the transactional purchasing of goods and services, working with accounts payable to complete the source-to-settle cycle by processing supplier invoices for payment.
Advances in technology are transforming traditional business practices by disrupting supply markets, changing customer buying patterns, and adding complexity to the supply chain. Procurement organizations must respond by taking on a more strategic role in all of the activities surrounding purchasing. They need solutions that are up to the task.
By moving to the cloud, procurement management systems digitize procure-to-pay processes with embedded mobile, social, and analytic capabilities and a richer, consumer-like user experience. With modern technology, such as built-in collaboration, embedded analytics, and a more intuitive user experience, companies can build a more effective purchasing system to control employee spending, reduce supplier risk, and improve cost savings.
For Team’s efficient collaboration
When your procurement operations are supported by a management system, you have the opportunity to put together an efficient and well-trained procurement team to handle all of these operations. These people will work closely with all the integrated software, e.g. from Weaveability, to achieve the best results for you. One of the benefits of having a management system in place is that because the systems are automated, the efficiency and quality of the work will continue to improve as they’ll have the best tools available to them. Gain full visibility across the entire source-to-settle process and exchange documents and messages electronically with your suppliers. Integrated procurement processes facilitate real-time document authoring, reviews, and approvals. Embedded social collaboration enables teams to complete assignments faster and more effectively.
Support for a mobile workforce
Today, employees and managers are using mobile devices to do their jobs. Modern cloud procurement solutions enable you to leverage these devices to streamline processes, reduce latency, and allow faster approvals.
Increased data accuracy & Embedded analytics
When the process is conducted electronically, the resulting streamlining reduces opportunities for error. The repository of documents also makes it easy to refer to older orders and contracts to ensure contract compliance, thereby reducing data inaccuracies.
Increase productivity with user-friendly dashboards that present information clearly and highlight actionable content. Interactive, role-based containers called infolets help users quickly visualize high-level information, review relevant details, and take action. Transactional applications leverage embedded analytics in context so that users can quickly decide on next steps in a business process. When you use a procurement management system then you’ll find that in-house your time management improves.
You’ll be able to identify and stick to all your agreed deadlines. And the associated transactions will be quicker and easier to management. The purchasing process will be supported by up to date software which will reduce any unnecessary activities, and speed up procurement cycle times. This will make it much easier for your suppliers to know where you are within a given process. And they can see what they need to do to complete it – without you having to stress about it.
Intuitive user experience
A consumer-like user experience enforces purchasing management compliance and makes it easy for employees to find what they need. Productivity improves because users are able to focus on more value-added tasks.
With a smaller team taking care of more work, you’ll save money from your procurement budget. This means that you can reallocate the money elsewhere within the business to where it will have the greatest effect. It might be that your marketing is in need of extra funding if you trade online. Or else it might be time to start thinking about a physical trading location. Procurement is just one necessary element of what you do, so using a procurement management system will enable you to not let it take over.