Traditionally, the role of a purchasing manager is focused on cost containment. The cost of purchased goods and services can be up to 70% of the company’s total costs. Still, the responsibility of the purchasing manager is not only to save money. By focusing solely on reducing costs, you miss many other advantages that can be provided by automated procurement process. Availability of information on the P2P process in real time is highly beneficial for sustainable company’s development.
Purchase accounting in real time is the key advantage of automated procurement. It brings significant contribution to the company’s performance. Usually, in most companies data from printed documents is entered manually. This method is extremely laborious for the staff of all departments in the procurement process.
According to Forrester, accounting departments of most companies spend more than 25% of their time trying to resolve the existing errors (for example, inaccuracies in quantity and/or the price of the goods).
With understandable software, the company can significantly simplify its life:
Ensure data accuracy – minimizes errors and inaccuracies in orders;
Save all of the current and past records – provides full reporting of the procurement process (reporting is accessible at any time).
These aspects help managers to assess the overall efficiency of the P2P accounting process and make informed decisions faster. Every day procurement automation benefits are becoming more apparent.
The main reasons why companies accept and implement e-procurement software are the following:
- productivity increase
- visibility of operations
- cost reduction
- cost control
- reduction of workforce
- possibility at any time to receive materials they need.
A broad view of the procurement process is the most important thing. Its better understanding promotes efficient operation and company’s growth.