Differences between purchases made for payment and electronic purchases
The purchase, which is made before payment, is a step-by-step process with many stages. The electronic procurement system is directly related to the digitization of the above-mentioned process using special tools created specifically for this purpose. A mandatory criterion for the success of any organization or company that wants to become the best in P2P is the availability of cloud-based procurement platforms for making payments.
E-procurement and the factors of use in their favor
The software for the implementation of purchases in electronic form provides a favorable position in the market for any organization that seeks to apply it in its activities:
– Absolute, detailed compliance with corporate policy, as well as constantly increasing requirements from the legislation, while making the minimum possible effort to carry out this activity. Generally accepted standards and the arrangement of document turnover will help to automate this part for you.
– The ability to track the estimated costs at the moment in such aspects as suppliers that are given special priority, possible relationships and channels of interaction, regulated and agreed cost, low consumption. Notifications can keep you informed about any, even the slightest, changes, so that you can anticipate events, adjust actions in your plan, and do everything possible to mitigate the expected consequences. Among other things, the software for the implementation of purchases in electronic format provides you with absolute data on the implemented costs, which, in turn, represents the foundation for a confirmed cost analysis, and, in the end, a worthwhile, necessary solution for controlling and managing all categories.
– High quality of the activity performed due to the shortened cycle period, as well as an impressive difference in the number of errors that occur. It reduces the likelihood of not only any failures but also acts of fraud and deception.
– There is a special regulation of expenses, which is made from several sources. The first source is the savings that occur due to purchases through priority suppliers, as well as through certain, required channels. The second source is the reduced cost of the most efficient procurement process. The last is the hidden value, which for some unknown reason is often forgotten. Just think about all the users who approve or submit purchases, as part of the P2P process, and how much time they spend buying when the procurement process seems to be not efficient enough. Time is a truly valuable and limited resource that can be recouped by improving business productivity once e-procurement software like Precoro.com is applied.
– Increase the level of satisfaction of the parties who are interested in the procurement process. Users will be able to see only the data that is directly related to them. For example, customers will observe the estimated delivery dates, managers will see their budget costs, and lenders will analyze deferred invoices. Users no longer need to remember all the rules, all the existing business cases that need to be passed for the following reason: the solution for making purchases in electronic form takes into account all the required rules and regulations, directs the user to purchases that will be compatible with each other.
– Advanced, effective collaboration, as the software enables suppliers, buyers, as well as parties who are interested in the implementation of purchases, to quickly transfer data to each other. Among other things, they have the opportunity to work part-time on a specific product. An example is the following: purchase orders can be directly changed by suppliers due to delivery opportunities, as well as due to the availability of inventory. In addition to the above, the receipt will be much better and more correctly made according to the ASN, the supplier’s prior notifications regarding the delivery.
It is well known that a small part of the solutions that can be found on the market will have the same price. It is for this reason that it is so complex and important to choose the right solution.
Factors that make it worth choosing the appropriate software for the implementation of purchases in electronic form
– All available costs must be constantly maintained, no matter what it is: indirect costs, direct materials, services or goods, temporary or permanent costs. This is necessary in order for users to get everything they need. This approach is basic and key in not making individualistic expenditures.
– Due to the fact that the procurement process is manageable and regulated, users have the opportunity to switch to compatible procurement channels with the help of a user experience that remotely resembles standard shopping. This moment is important for the full and effective use of the tool, as well as the process of the activity itself.
– It is necessary to support all stages of the procurement process in order to be sure that the automation process is really so efficient and works successfully, especially regarding steps that are carried out independently: actions by phone or by email. A fairly standard example would be a purchase order (PO) update. Due to the fact that vendors are not able to change the PO, they have to inform the customer via email that they need to change the price, product or delivery date of the order itself. The user, in turn, forgets to specify the changes made in the PO. And, as a result, when you receive the invoice, it turns out that it does not correspond to the original purchase order, since it was not updated in the first place. It is for the above reason that allowing vendors to update the PO is mandatory and fundamental. This action, of course, is performed under the careful control of the user.
– Synchronized interaction with systems such as ERPs or MRPs, in order to obtain information from other stakeholders interested in the activity process. There is also a unique opportunity to obtain information about third-party suppliers to improve the efficiency of the procurement process before replaying the payment. For example, you can evaluate the reliability of a supplier using Ecovadis before ordering a particular product.
– Rapid deployment, able to adapt to your requirements, without any harm to the ability to evolve according to changing rules and regulations, corporate policies or fast-growing companies, without waiting for a new software release.
Choosing the right software to pay for purchases will save you from making erroneous deployments. You need to create your own business case in order to get a budget from finance.