How SaaS-Based Tools Play a Crucial Role in Improving Your Procurement Strategy?
The awareness about SaaS and automation technology is vital to switch from tedious work to smart work in the procurement industry. Earlier, companies used offline processes to manage procurement strategies that made it tedious and ridden with human errors. But technology gave rise to automated solutions revolutionising how companies would procure raw materials in the future.
According to a report, the global procurement as a service market is expected to grow at a CAGR of 7.3% from 2019 to 2025. How is the e-procurement system useful, how it caters to every business out there, we will find out soon, but before that, let’s look into the challenges of the traditional procurement strategies.
Challenges of Traditional Procurement Strategies
Why will traditional Supply Chain Management strategies not help in the long run?
Supply chain management is the most significant component of your procurement strategy. But there are various challenges associated with it. Statistics suggest that 65% of procurement leaders have no visibility beyond their Tier 1 suppliers. The following points explain all the challenges one by one:
- It’s challenging to reach out to many suppliers at once and evaluate them across a vast set of parameters to select the best one.
- Offline procurement strategies are time-consuming, expensive, and difficult to monitor.
- It’s challenging to solve company-supplier issues without an appropriate grievance portal.
- Offline deals require a lot of documentation and paperwork.
Why are traditional ways of doing Cost Analysis obsolete?
Cost analysis gives you a 360-degree picture of your spendings and savings. In short, it allows you to keep your finances in control. A recent report reveals that 78% of procurement officers identify reducing costs as their highest priority task. Let’s study the various disadvantages of offline procurement strategies:
- Cost analysis is done on paper that cannot be shared with business stakeholders in real-time. Therefore, getting instant feedback isn’t possible.
- Expense records are maintained by employees that give rise to human-induced errors.
- A lack of a central database for viewing expense reports doesn’t allow getting a comprehensive picture of transactions.
Why will the absence of Industry 4.0 technologies lead to Ineffective Data Management?
Data management technology allows companies to collect and analyse data and reveal hidden insights. A study indicates that 46% of procurement officers believe that lack of data integration is the biggest hurdle in implementing digital technology in procurement. Also, companies depending on offline procurement strategies don’t have a centralised platform, which leads to the following drawbacks:
- Paper records are often lost and subject to data tampering.
- Paper records make audits a big challenge.
- In an offline procurement strategy, the officer-in-charge may favor a particular supplier because of personal affiliations instead of judging them based on predetermined technical parameters.
- Transparency is the minimum in offline procurement strategies. Thus, there are higher chances of fraud. The entire process is ridden with malpractices and under-the-table dealings.
Technology helps eliminate the challenges mentioned above. eProcurement strategies use automation tools, making the entire process more fast-paced, secure, efficient, and automated; here’s how:
SaaS-Based Tools Transform Supply Chain Management
- Automated solutions help reach a vast number of suppliers and judge them based on parameters like production capacity, risk, quality, performance, and environmental impact.
- Saas-based solutions are extremely fast, inexpensive, and send real-time reports.
- A well-developed grievance platform allows quick solving of company-supplier issues.
- Business stakeholders don’t have to waste time sending and receiving paper documents because they can access them digitally from a centralized platform.
SaaS-Based Tools Help Conduct Cost Analysis Unbiasedly
- Automated solutions allow performing cost-benefit analysis digitally that eliminates threats like paper forging, data alterations, misplacing of documents, and much more.
- Automation eliminates human errors from expense reports.
- The spend structure is visible to all business stakeholders on a real-time basis. It guarantees transparency and ensures that no wrong changes are made.
SaaS-Based Tools Significantly Improve the Procurement Process
- Automated tools introduce eSourcing that allows obtaining bids from multiple suppliers via a single online portal.
- eSourcing significantly improves supplier competition that enhances productivity and the business’s spend structure.
- Automation allows online Request for Proposal (RFP), Request for Information (RFI), and Request for Quotation (RFQ), thereby speeding up the process.
- SaaS-based tools have cybersecurity mechanisms that protect against unauthorized access. You can rest assured that your private details are 100% secure because no outsider can make any changes to them.
How Will Procol Facilitate Your Procurement Business?
Procol is a frontrunner in developing resilient software solutions for the procurement and sourcing industry. We believe that companies can achieve significant results by automating their manual processes. Our award-winning SaaS-based application provides proven benefits and value for money.
Here are some benefits to look forward to using our in-house automation:
Procol’s in-house Automation Tool will Significantly Increase Your Vendor Reach.
Our automation tool provides live online procurement services. You will no longer need to make calls and send emails to a multitude of suppliers. Instead, you can automate sourcing from your smartphone and get real-time updates from vendors.
Procol’s in-house Automation Tool will help you Visualise Trends and Optimise Cost-Saving.
Analyse data quickly and efficiently to identify cost-saving opportunities at your fingertips 24/7. Discover hidden insights by visualising trends through attractive charts, graphs, and tables.
Procol’s in-house Automation Tool enables Developing Robust and Evergreen Vendor Relationships.
Procol’s procurement management software acts as a single source of truth to critical business data and helps develop robust audit trails from a single dashboard. This process significantly increases vendor trust and assists in building long-lasting relationships.
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