By Robert Rackauskas, Business Development Executive, Proactis
Procurement can be a leader in a company’s digital transformation. Automating manual, paper-based, labor-intensive processes leads procurement to enterprise-wide visibility. Procurement’s influence goes well beyond mere cost cutting, all the way to process efficiencies and spend visibility.
Organizations are under increasing pressure to not only reduce costs, cycle times and risks, but also to provide strategic value and help sharpen their business’s competitive edge. Procurement can be trusted to help a business reach its full potential through Purchase-to-Pay (P2P) automation
by driving business-process innovation, reducing risk, and ensuring compliance, to name a few.
Below are examples of the additional contributions your Procurement team can drive – leading to trusted advisor status.
- Leverage eProcurement tools to foster collaboration with internal stakeholders and external suppliers
Without face-to-face interaction (due to Covid), people need an easy way to communicate efficiently on who is making purchase requests, approvals, and more throughout the Source-to-Pay (S2P) process
. P2P automation provides a platform to increase the transfer of information both internally and externally through more efficient processes and workflows. Thus, resulting in increased transparency. Transparency will help a company discover additional revenue, better supply relationships, improve supplier risk management, and strengthen its competitive advantage.
- Strengthen the relationship between Finance and Procurement
Even with technology to help enable communication, finance and procurement tend to operate in their own siloes even though they have similar department goals (e.g. fiscal responsibility, compliance, etc.). However, many times, finance teams are focused on the big picture and unknowingly overlook the resource needs of procurement to effectively drive the organization’s efficiency goals. Despite their overlapping roles, it is procurement’s responsibility to educate finance on how working together can help both parties reach their goals. With the new software and services available, the awareness curve will hopefully reduce this education hurdle. Procurement and finance need to work together as one cohesive unit to achieve a complete picture of a company's present financial position and future growth potential.
- Invest in the right technology
Automation of key processes such as purchase orders, invoicing, and payment is a must and can be improved for most organizations regardless of their size. Transforming procurement through automation has enabled organizations to streamline their processes and opens the doors for further transformation (e.g. data and spend analysis). Note: Data gathering and analysis will continue to bring new challenges and insights. We are only scratching the surface on ways procurement executives can gain visibility into spending across the organization, identify opportunities for consolidation, cost reduction, and process improvement.
And keep in mind, that the right solution will make it easier rather than harder for your internal users to do their jobs, thus, furthering your spend visibility across the organization.
If Procurement can demonstrate their inherent value both internally and externally, it will further strengthen its position in the company and reach the status of trusted advisor.
To learn more about our experience and success in automating procurement and bringing about the esteemed position of trusted advisor.
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