Technological advancements have changed how business is conducted today. According to Supply Chain Quarterly, 50% of organizations have turned to technology to provide analytic capabilities well beyond what even their most talented people can achieve during a specific period of time.
This statistic makes it clear that whether you own a small business or operate a large enterprise, technology, such as procurement software, has become essential if you want your business to find stable footing in the market’s future. Unfortunately, this form of technology can provide you with as many challenges as there are benefits, such as unintentional overspending and inaccurate product records.
A procurement system is considered as the key to automating and improving an organization’s purchasing abilities and functions. It is equipped with countless features where you can complete approval processes, input and define purchase orders, and access real-time budgeting controls. Unfortunately, these features can be forgotten especially after purchasing the system because of its surface-level abilities. As a result, your procurement software does not seem to be functioning in the best possible way that you expected when you got it. To help you rectify the problem, here are 5 strategies that you can use to improve your procurement software:
1- Match your needs to your software’s features.
The first strategy that you can employ is to scrutinize and criticize each of your software’s features to determine their purpose in your company. There are many types of procurement software but at the very least, it would have things like a purchase order system and even real-time data access. Take each feature and determine what it can do for you and your employees. For instance, if you have a digital approval process, you can take advantage of defined company and user roles as well as the ability to approve or reject requests with a click from your mouse or a tap from your finger.
2 – Always think of your suppliers.
Another thing you can do is to keep your suppliers at the forefront of any of the efforts you expend to improving your system. Procurement software features include a multitude of options. When you take advantage of each feature in the previous strategy, use the time to also provide exact details that will help your procurement software prevent the misunderstandings and conflict that could cost you your relationship with your suppliers. Input a clear description of the purchase, tell your employees to outline delivery terms and ETA, ensure that the payment terms are expressly stated, and provide delivery instructions.
3 – Take advantage of business analytics.
The third strategy that can make your software far more effective than it is now is by taking advantage of business analytics by letting it have the data it needs to analyze and make valuable insights. Having access to real-time budget tracking is useless if your software doesn’t have detailed budget modules and access to invoices. Reaping the benefits of procurement software requires proper use of business analytics, which will then help your small business achieve digital success. In doing so, you would have what you need to transform your company to one that is data-driven and future-proofed with the abilities that you helped your software cultivate.
4 – Use the API integration of your software.
The best procurement software for small businesses and even large enterprises will offer API integration, which refers to being able to add the applications and software you use regularly to complete your tasks. Be it in terms of accounting applications or importing essential data, API integration brings you one step closer to a platform that can handle most of your tracks, if not all. Consider that your software may not be performing the way you want it to because you haven’t given it what it needs to simplify your process. Take a look at your daily process. Identify which apps you’re using and see if you can integrate it into your software. Talk to your vendor if you don’t know how.
5 – Secure your software.
The final strategy that you can use to improve your software is to secure it. Given the previous strategies, it is clear that you’ll have to let your software have access to some of your company’s essential data. As such, if you worry that your platform may be at risk of security breaches and that is why you don’t use it properly, then ensure that your software is secure. While you talk to your vendor about integrations, take advantage of that time to ask about what they have done to prevent security breaches. Ask what you can do to achieve the same goal.
Procurement in the 21st Century
The FinancesOnline.com procurement management plan includes the recommendation that you get the proper procurement software as well as any additional tools that might help in the process. After you’re done improving your platform, go back to that list and find the next step in your procurement management plan. But if you find yourself stuck because none of the strategies worked, then it might just be time to find another that best fits your company’s needs.