Work in procurement can be challenging, deadlines shift, responsibilities morph from needs identification to vendor management or payment processing. For the modern procurement professional enforcing organizational spend while enforcing proper procurement procedures is a constant juggling act and can be a constant source of worry.
But what’s worse, is that these challenges can just be a drop in the ocean.
With the constant demands of purchase requisition management, purchase order processing, contract/account management, supplier lifecycle management it’s easy to see how procurement leaders and teams don’t often have enough time to tackle common challenges in procurement.
Here are some common procurement challenges that the More4apps team have seen haunt businesses of all sizes:
Supply risk is always a major challenge in the procurement process. Market risks, potential frauds, cost, quality, and delivery risks constitute the most common type of risks. Additionally, compliance risks like anti-corruption, policy adherence, and more keep your procurement leaders up all night.
Purchases that are made outside the defined procurement process fall under dark purchasing. Uncontrolled spending like this can ultimately be expensive for businesses. When items purchased cannot be justified using capital outlay or material inventory, the resulting loss of revenue and control is a significant challenge for organizations of all sizes to tackle.
Long process cycle:
Most often, products and services are procured with a sense of urgency, last minute. In reality, the actual lead times and the procurement cycle tends to be considerably longer than that anticipated or scheduled.
Here are some common delays in the procurement process we’ve seen:
- Delays in preparing technical specifications/TOR/SOW
- Overlooking the procurement schedule
- Extending the timeline to submit bids/proposals
- Failure to start the evaluation process on time
- Setbacks in contract negotiation
In order to make sound procurement decisions, organizations need accurate and reliable data. Making purchases based on inaccurate procurement data can lead to inventory shortages, excess inventory, and other additional procurement challenges that have the potential to impact an organization’s bottom line directly.
As the procurement process continues to become more strategic and collaborative, organizations are starting to realize the benefits of having a solid procurement strategy in place. However, understanding the strategic implications of every step and figuring out a way to implement it across all functional units of business is a distinct challenge.
One of the greatest challenges in procurement is supplier management. From identifying the right supplier to keeping track of vendor performance and ensuring a stable supply of quality products, the whole process is filled with complications.
How procure to pay software can help fix these challenges and set your procurement manager free.
Procure-to-pay software like the More4apps EBS Toolbox range of products can reduce risks, processing time, and overall cost, freeing up the procurement team to focus more on human-centric tasks. Irrespective of an organization’s size, it enables businesses to buy smarter, streamlines their purchase-to-pay cycle, and manage supplier relationships better.
Remove your barriers with the best tools.
With a constantly changing marketplace and technology evolving almost overnight, challenges in the procurement world are on the rise. Gaining a good handle on the intricacies of the procure-to-pay process,will help businesses thrive rather than just survive and meet their procurement goals.
Do any of these challenges sound familiar? Are they holding your organisation back? Then it might be time to talk to the team at More4apps and consider reviewing your procurement system. An out of the box solution from More4apps can help your organization streamline your procurement process and help drive it forwards to success.