Procurement is a business area that is ripe with opportunity for the adoption of technology. There are many tedious, repetitive tasks that procurement teams have to perform on a regular basis. And, a lot of these tasks can be more efficiently performed by the use of automation or some other form of technology.
Before we get into the details of how technology can help, let’s first take a look at the common procurement issues.
Common Procurement Challenges
Here are some of the most common procurement challenges faced by businesses across different industries:
- Keeping track of inventory and predicting future purchase requirements.
- Managing suppliers and ensuring a clear line of communication with them.
- Ensuring that the quality of products procured is good and measuring the performance of each vendor in terms of quality.
- Streamlining processes to make the best use of time and resources.
- Reducing errors and maintaining high accuracy levels.
- Making the procurement process as cost-effective as possible.
These are just some of the many things that a procurement leader has to worry about. And, more often than not, every procurement manager faces challenges in one or more of these areas.
That is where the use of technology can help them overcome some or all of these challenges.
How Technology Can Help
Technology can help solve numerous business problems, including the procurement process issues mentioned above. Here are some of the ways in which using technology can help:
The use of technology can help move things along faster and with higher efficiency. For one, there will be no scope for human error in the parts of the process automated by technology.
Secondly, it will also make the process faster and smoother. Effectively, you can get more done in less time.
You can use technology to track and measure the performance of each vendor and optimize your supply chain. Using historical purchase data, analytics tools can provide insights into which vendors you should select and where you can save money.
These are just some of the many procurement issues that technology can help you solve. To find out more about how technology can help, check out this infographic by PurchaseControl.
Image courtesy: PurchaseControl
Author Bio – Michael
Founder & CEO with international experience in Procurement and Spend Management Software – ‘PurchaseControl’
LinkedIn Profile: https://www.linkedin.com/in/michaelhiggins-purchasecontrol/