Procurement Automation Software: The Basics and Why You Should Consider It
If you are a company struggling to maintain and record all that purchase orders and the inventory, procurement automation software can be your best friend. With digital transactions increasing rapidly all over the world, procurement automation software can free you from the dread of paperwork bundles.
But first, what is Procurement Automation Software?
Procurement automation software is a computer application that automates the purchasing process of organizations. They carry out the approvals, orders and selections, invoice match, and payments during the purchase. This allows the procurement department to plan and track procurements effectively which leads to cost savings. Furthermore, it also makes accounting and inventory management more convenient.
Features of Procurement Automation Software
A good procurement automation software has easy to use interfaces and dedicated support for accounting and workflow management. These are the most common features every procurement automation software possesses:
Easy to Use Interfaces
The software must have easy to use interfaces so that training employees is quick and easy. If the interfaces are difficult to use, much time and effort must be dedicated to training. Likewise, this will increase training costs and delay the process of making your employees work-ready. Furthermore, there must be a maximum number of graphical user interfaces and drag and drop options. Writing commands is quite hard because there may be a lot to remember.
The software must automate the process of approval and purchase without the need for human support. However, this can be done only within the budget limits. Therefore, there must be a system of validating any process with predefined constraints.
Access to Budget Information
From the above point, we see that automated spending is done under certain constraints in the budget. Hence, any employee who does purchasing must have access to budget information. Furthermore, there must be a system of approvals and requests for purchases that go over the predefined limits.
The software must be able to track all the ongoing purchases and make necessary adjustments as soon as the process is carried out. For example, it needs to be able to update the available budget after learning the acceptance or rejection of the purchase order.
Benefits of Procurement Automation Software
Quick Approval Process
With procurement automation software, you need not transfer paperwork to several people involved in the purchase process for approvals and requests. A single click can send entire transaction documents to everyone at the same time.
Easy to Track Purchases
The software keeps a clear record of all the purchase history, the status of acceptance or rejection, and contracts. It is easier to search and update these data whenever required. Furthermore, this data can help you make informed decisions on your next purchase to save time, effort, and cost.
Easy to Manage Contracts
You can keep a record of all the terms and conditions in your contract with multiple vendors. Thus, you can check for these easily before you make a purchase decision.
Improve Communication With Suppliers
With automated procurement, you can maintain clear communication with your suppliers and inspect their bids in real-time. Both buyers and suppliers can respond to bids and best-offered quotes. This will save time and costs on both sides and maintain understanding between the parties.
Increased Productivity and Focus in Decision Making
With automation, much of your time can be spent on decision making and brainstorming. Furthermore, it allows companies to cut down on labour costs because a single employee is able to carry out multiple tasks with proper software training.
How We Can Help?
From this blog, we have learned why procurement automation software will increase productivity and efficiency in your purchasing process.
3E Accounting can be your trusted Singapore digital advisory agency to help your business make a digital transformation. Our experienced specialists will advise you on the best procurement software options depending on your requirements and budget. Furthermore, our services are extremely affordable which means you need not look any further now.
All the details of our high quality digital advisory services are available.
Contact us at +65 66909262 or email at email@example.com for more information.