Finance and Procurement executives are being challenged to find ways of reducing costs and "doing more with less". Improving the way an organisation purchases the goods and services it needs to function can be a big opportunity to do just that.
Common challenges facing organisations include:
- High % of purchases made without proper authorisation
- Not leveraging the full purchasing power to gain maximum discounts
- Difficulty managing budgets without full visibility of purchase commitments
- Employees feel that the buying process is onerous and takes too long
- AP costs are high due to excessive manpower requirements
By gaining a clear understanding of the underlying causes of these issues, and applying the right supplier management software, organisations can:
- Prevent inappropriate or unnecessary purchases by better enforcing the organisation's purchase authorisation policies
- Reduce the cost of the goods and services bought by increasing the percentage of purchases made from suppliers with the most advantageous agreements
- Improve budget control with better visibility and control of commitments
- Improve productivity by making it easier for employees to buy what they need
- Lower transaction costs by reducing employee, manager and AP time for every purchase
This article was originally published on the PROACTIS blog.
A solution such as the PROACTIS Spend Control and eProcurement Suite can help organisations to streamline and automate processes and obtain best value and control on procurement.
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