You can improve your procurement process with these steps!Comments Off on You can improve your procurement process with these steps!
The procurement process is extremely important for companies that have to purchase products or services. The better this process is set up, the better the whole of business processes can function. If there is a delay in the procurement process, you will notice this in the entire supply chain. When a product is not available in the purchasing process, dozens of end customers will notice this. If something goes wrong during the shipment or the settlement of the product, only one end customer will notice. As you can see, the purchasing process is one that has to be put together well. In this blog we will therefore tell you more about the possible improvements to the procurement process.
Procure to pay systems
With procure to pay systems, the entire procurement process can be mapped from a to b. This way you will quickly encounter any errors and bottlenecks in the organization. It is therefore advisable to use this system carefully. The better you implement this, the better the entire procure to pay process will run. For example, these systems can automatically order products when the stock approaches a certain level. In addition, the system is able to automatically purchase the products from the party that currently offers them the cheapest. This way you never pay too much for your stock and you also always have it at home on time.
Indirect procurement is a method of purchasing that has been gaining popularity rapidly in recent years. This is mainly due to the favorable cost structure of indirect procurement. In principle, the procurement process is outsourced to another party. Because they take the purchasing process off the hands of many parties, they can realize larger volume discounts at the supplier. Because the indirect procurement party realizes a volume discount, everyone at the bottom pays less. It may sound very unrealistic, but this way you can save money by adding an extra batch to the delivery process. It is important to outsource this to a party that is several times larger than yourself. Only these huge parties can achieve such a volume discount that it is interesting for everyone to participate.