Creating Value is Essential in Procurement – eProcurement can Help!
The many benefits of digital procurement are known to all. When organizations make the change to eProcurement, they are aware of the advantages that come with it.
When your company has just started using an eProcurement software, the obvious benefits (i.e. cost savings) are known. There are more benefits than cost savings alone. These benefits, when used to their optimum capacity, have the potential to create value.
By value, we mean activities that contribute to financial improvements that show on your company’s bottom line. All standard procurement functions have an impact on the bottom-line. But there are companies which focus slightly more than functions which go beyond just the standard procurement activities.
The activities that go beyond the normal functions:
- Supplier Relationship Management
Maintaining a healthy relationship with your suppliers cannot be ignored. We have stressed this in our blogs multiple times. There is no other solution to having an effective purchasing cycle but maintaining strong relationships with suppliers.
Segmenting suppliers as strategic and non-strategic can assist your organization in prioritizing them based on importance. The strategic suppliers are the ones who add value and are with you in the long run. Whereas, non-strategic suppliers can be nurtured over time which can only happen with patience and perseverance.
- Risk Management
Companies are familiar with the concept of risks and are aware of the consequences. When they take the digital procurement path, the risk is automatically mitigated because of process automation.
The value that risk mitigation brings to your organization is unmatched as it directly shows on their bottom-line profits. What more does an organization want?
Value creation of the future
Digital procurement is a fairly new concept and many companies are still adapting to it. Despite this, it is experiencing and adapting to new changes that are directly impacted by technology.
The technological infrastructure is growing and is being adapted by many. Every company wants to keep pace with the changing trends in eProcurement and hence, creating value through technological adaptions is most sought after.
Recent procurement functions are thriving due to automation in the purchasing processes. The key performance factors in the procurement functions will be driven by Advanced Analytics which involve Big Data, Machine Learning (ML) and Artificial Intelligence (AI).
Choosing the right eProcurement software matters!
Everything we discussed so far will only make sense if your company uses a software that can fulfill the basic procurement needs and can adjust to the technological changes happening in the industry.
An efficient eProcurement solution boasts of functions and modules that can be adjusted according to your organization’s needs. A solution that can be customized for optimal use is what makes it stand out.
Making the investment in an appropriate procurement solution will benefit your organization in more than one way. The digital procurement needs of the company can be solved through an effective solution that addresses the issues of lack of technological advancements, supplier relationship management, risk mitigation, etc.
Solving these needs efficiently will give rise to value creation and hence, will result in improved performances affecting the bottom-line.
Eyvo can help!
All said and done, if your company lacks an efficient eProcurement system, none of the above will imply and value generation will just be something you want to achieve but cannot.
Eyvo’s eBuyerAssist looks after every clients’ needs and takes care of every organization’s individual needs. Your company can experience digital transformation and value generation that will ease you through in your procurement journey.