Why New-Age Procurement Solutions are Better than Traditional ERP Tools?

Introduction

As an organisation, you have a lot of software to choose from when it comes to managing your supply chain. From ERP to CRM and everything in between, there are a variety of different e-procurement solutions available for you to choose from.

In this blog post, we’ll go over the top six reasons why having an e-procurement solution is better than using conventional ERP tools. If you’re looking to up your supply chain game and ditch the manual processes that go along with ERP systems, then check out the top six reasons why a sourcing solution is better than an ERP tool.

1. Simplify operations by centralising data

When you use an e-procurement solution, you end up simplifying your overall business by streamlining key areas such as sales and service, inventory, and finance. This means that you can have a single dashboard that allows you to see all of your key metrics as an organisation.
The ability to easily see key metrics like sales, inventory levels, and service levels is something that’s not possible when using ERP systems. With an e-procurement solution, you’re able to have one dashboard that shows all of your key metrics. This implies that you don’t have to spend hours looking at different dashboards to make sure your business is running smoothly.

2. Automated processes

With automated processes, you end up having a fully integrated solution. With ERP systems, you may have manual processes that need to be followed. You will end up spending more time doing manual processes than you would if you had an e-procurement solution. With automated processes, powered by the right procurement software that complements your business model, there are no manual processes to implement.
The intelligent use of automation, reports say, can reduce the procurement headcount by up to 80 percent, which will result in direct savings for your business. Automation can significantly reduce the slowdown induced by human intervention and make procurement faster.

3. Powerful reporting

A powerful reporting feature is crucial when using an e-procurement solution. You will be able to easily see data that you may not have otherwise, along with key metrics as an organisation. Every procurement solution comes with in-built tools which report data on demand.

4. Prescriptive analytics for effective decision making

Prescriptive analytics is a crucial part of an e-procurement solution. With prescriptive analytics, you’re able to set KPIs for different departments in your organisation, such as sales managers or procurement managers. Equipped with this data, you can make the right calls about procurement and warehousing, which in turn will yield returns for your business.

5. Data-driven workforce development and talent management

Data-driven workforce development and talent management are two other key parts of an e-procurement solution. You will be able to set goals for employees, such as the number of deals each employee closes. Moreover, when you have a data-driven workforce development, you can make decisions that are more informed and calibrated, and in tune with the requirements of your procurement model. A lean and mean procurement team is better than a large and lethargic one.

6. Collaborative environment and communication

A collaborative environment is another key part of all procurement solutions. With a collaborative environment, you will be able to encourage team collaboration. Your team will visibly work like a well-oiled machine. This, in turn, makes the decision-making process faster. Moreover, seamless communication ensures that tasks get completed within the stipulated time and don’t drag on endlessly, adding to the cost. In short, this could help lower inventory costs and improve logistics.

Conclusion

ERP systems are often restricted with managing a company’s inventory. They do not help with purchasing, forecasting, or sourcing. When an ERP system can’t help, companies are forced to rely on manual processes which take time and resources away from the core business operations. A sourcing solution can be employed to obtain stock in bulk and set up purchasing plans for long-term use, ensuring that a company only purchases what they need.

One of the most significant challenges in businesses today is the increasing complexity of their supply chains. Even if less complex, sourcing solutions aren’t easy to manage. Having software solutions that make the task easier can significantly ease your burden.

While there are many options in the market, Procol is one of India’s leading procurement solutions adopted by industry giants such as Dalmia, Hershey’s, Crystal Crop, Cremica, and many more. Schedule a demo with them today to find out how our procurement software can be integrated with your existing architecture.