Modern procurement organizations are continually challenged to deliver cost savings in an effort to help the company maintain its profit margins.
To do this, procurement must increase its influence both over suppliers from whom they source goods and services for the business and over the spending activities of the company’s workforce.The latter entails providing tools that help purchasers easily find what they need and buy it from an approved supplier so that negotiated savings will be realized. Procurement departments are further challenged to manage the company’s source-to-pay cycle without growing headcount.The solution: greater investments in technology.
Fundamentally, it’s about looking at procurement from two perspectives: how effectively it is providing tools that enable employees to purchase wisely and through approved suppliers, and how efficiently it is executing the source-to-pay process.This entails effectively finding and evaluating potential suppliers, negotiating agreements that ensure greater cost savings, and quickly on-boarding suppliers. Then managing requisitions, purchase orders and automating the supplier invoice validation phase to take advantage of potential early payment discounts with minimal human intervention.
Modern procurement requires source-to-pay technologies that run in the cloud and utilize modern technologies such as embedded analytics, support for mobile devices and deep embedded social collaboration to help people work more effectively together, and streamline processes. In order to ensure that your modern procurement solution supports a modern approach, we’ve outlined 5 primary tenets of a modern procurement solution that together provide a richer employee experience, collaboration that streamlines processes and increase efficiently and insight that guides decisions at all phases of the process. Modern procurement solutions must be Strategic, Insight-Driven, Collaborative, Ultra-Efficient and In-Control and Compliant.