PROACTIS Blog

Why “Best-in-Class” eProcurement is “First Class”

Charlotte Sutton
Charlotte Sutton,
PROACTIS
PROBLEM

Organisations of all types and sizes are under constant pressure to do more with less. In most organisations, the key processes have been streamlined and improved over the past few years. But a wide range of problems are endemic to those who ignore the procurement process for indirect expenditure.


Maverick Buying
  • Spending over budget 
  • Incorrect cost allocation 
  • Unauthorised transactions        
  • No corporate compliance
  • No legal compliance 
  • Inconsistent process
No Visibility
  • No spend analysis         
  • Transaction flow invisible 
  • Cost pipeline invisible
  • Budgets/commitment access 
  • Contracts inaccessible 
  • Manual catalogue sources         
  • Unexpected transactions    
No Savings
  • No economies of scale 
  • Negotiated contracts ignored 
  • Costly process 
  • Too many staff 
  • Audit fees too high 
  • Productivity gains missed 
  • Inefficient paper trail 
  • Process bottlenecks 
  • Documents get lost 
  • Duplicated transactions 
  • Annual account coding 
  • Paper intensive process 
  • Delays
PROBLEMS WITH PAPER-BASED SYSTEMS

Even where the procurement process is defined, it remains a manual system in many organisations. It often involves the physical movement of paper documents, demands regular subjective intervention, and provides little visibility of either the transaction or its process until long after such information is useful.

It is a costly and inefficient process, prone to error or duplication which delivers little control or visibility.

PROBLEMS WITH SIMPLE "REQUISITION" SYSTEMS

Even electronic "requisition" systems in use today in many organisations offer little in terms of process automation around critical steps such as item sourcing and selection, budget checking, truly usable approval routing, invoice matching, etc.

And such systems provide no help with strategic sourcing or capital goods/project sourcing, contract management, supplier communication, etc.

PROBLEMS WITH EARLY E-PROCUREMENT SYSTEMS

Early solutions intended to provide more procurement process support have been expensive and difficult to implement. Most have been suitable only for the very largest organisations. And in many cases, these systems have been far less than successful because they are cumbersome for employees and department managers to adopt or use, causing users to buy things outside the official process. This “maverick” buying greatly reduces the number of purchases using the proper process and sources, and therefore greatly dilutes the benefits. Mid-size and smaller organisations in particular have had little access to practical procurement support systems that could truly help them improve their purchasing.

PROBLEMS WITH ERP PURCHASING MODULES

ERP systems cover a broad function scope and offer a degree of integration across their different applications. However, such breadth often leads to a lack of focus on Spend Control issues such as bringing maverick spend under control, giving visibility of the cost pipeline and delivering economies of scale.

Since most ERP systems are primarily designed to support purchasing of direct material for manufacturing or sales, they are typically cumbersome at best when it comes to the purchasing process for the many indirect goods and services needed by the rest of the organisation. They rarely provide the ability to access supplier websites or marketplaces, and they provide little, if any, support for procurement processes such as sourcing or contract management.  
 
SOLUTION

What is needed is...

A comprehensive solution that streamlines the entire procurement process in order to: 
  • Obtain “best value” for purchased goods and services
  • Reduce the cost of the procurement process 
  • Improve financial control 
  • Ensure compliance with organisational policies
  • Improve organisation-wide productivity 
An intuitive, easy-to-use solution that will be readily adopted in order to:
  • Minimise end user training requirements
  • Eliminate errors, delays and frustration
  • Most importantly... realise the full potential of Spend Control and eProcurement  
 A modular solution offering deployment flexibility so organisations can:
  • Resolve immediate Spend Control problems first
  • Invest in just the solutions they need
  • Extended the scope of their Spend Control support over time
  • Protect investments in existing systems
A practical solution that is easy to implement and manage in order to:
  • Effectively tailor it to the unique needs of the organisation
  • Speed deployment and deliver results quickly
  • Minimise internal resource requirements and total cost of ownership
POSITION

PROACTIS is a new generation solution that finally enables organisations to realise the full potential of Spend Control and eProcurement.

PROACTIS is appropriate for commercial companies as well as public sector and not-for-profit organisations, delivering specific functionality to address the unique needs of each.

PROACTIS is both comprehensive and robust, with the capabilities to support the needs of employees, managers, purchasing professionals, and financial executives in any organisation. Just as importantly, its flexible, modern design makes it easy to implement and manage. And most importantly, its straightforward concepts and intuitive user interface make it easy to use, fostering ready adoption throughout the organisation.

KEY DRIVERS FOR PROACTIS BY SECTOR

Public Sector
  • Best value procurement 
  • Sustainable purchasing 
  • Sourcing transparency 
  • Supplier risk management
Private Sector
  • Spend control
  • Cost pipeline visibility 
  • Streamlined purchasing 
  • Broadest available catalogue 
Not-for-Profit
  • Visibility and accountability 
  • Tax exempt purchasing 
  • Funded buying 
  • Ethical vendors
Built from extensive real world experience using today’s most advanced and reliable software technologies, PROACTIS delivers:
  • A comprehensive suite of applications to support all key procurement processes
  • Fully electronic processes to eliminate paper-based inefficiencies 
  • Built-in controls to ensure corporate compliance 
  • Intuitive design to drive broad adoption
Plus:
  • Easy access to information for better management decision-making
  • Seamless integration with existing systems for streamlined business processes
  • Fully internationalised to support global business  
And:
  • Deployment options to fit any organisation and business model
  • Rapid implementation to speed results
  • Easy system administration to reduce total cost of ownership
  • Microsoft technology for a reliable, scalable industry-standard platform 
  • Flexible licensing to deliver affordable world-class solutions for any need and any size organisation.
 
 
 
Get in
touch
Attend
an event
Explore
resources