This Blog Post will cover:
- Best methods to choose the best procurement software.
- How to evaluate software features.
- Whats latest trends in procurement.
From requesting electronic purchases to paying suppliers, procurement is a comprehensive process that encompasses much of a team's day-to-day tasks. Companies that specialize in the B2B tradecraft are especially aware of the importance of a proper procurement process. Furthermore, procurement has continued to evolve far beyond the basic expectations that were previously established.
In fact, Oxford Economics reported that 63% of executives and 49% of practitioners believe that procurement will maintain its current structure but will also absorb more functions connected to the supply chain. The implication of these statistics is that teams that work specifically for this process will eventually see an increased workload and heavier responsibilities.
Another driving factor that may force businesses to subscribe to technological innovation is the fact that AI and automation, among others, have become essential in gaining a competitive advantage. As a result, procurement systems have taken the number one spot in B2B business investments. This trend is especially emphasized by the increase of online activities, from eCommerce to online trading.
While there are many procurement software options in the market, the process involved in choosing the best one that fits your company can be exhausting and overwhelming. As such, to help you find one that is perfect for your needs, here are five steps you need to go through if you're to choose the right procurement software for your company:
- Decide on which type of procurement to use
Asking which one among the many forms of procurement software you should use to help you out in your operations. There are many types of procurement software. From spend analysis to eProcurement and even supplier management, procurement systems have evolved in such a way that there's a form of it available for a specific task.
For instance, eProcurement is meant to facilitate and support information and communications exchanged between customers and suppliers. On the other hand, supplier discovery procurement systems are meant to help you find suppliers that fit your criteria. Figure out which type you need based on the information you want the system to give you. Doing so will help you narrow down your options.
- Evaluate which features you need
Beyond choosing what type of procurement software you prefer, you also need to determine what main characteristics and features you need it to have. Take a look at the procurement process and go from there.
Is your approval process hampered by a less than efficient workflow? Then look for a procurement platform that will allow you to audit the requests as soon as they come. Are you worried about the financial capital you use to purchase products and services from your suppliers? Then look for a blockchain feature that protects your B2B payments. You may also need an accounts receivable tool to better manage your cash flow. For every need you identify, research the features that can meet and match it.
- Choose your deployment model
The third question you need to ask is meant to further narrow down your list by identifying what kind of implementation you prefer for your procurement SaaS. This step involves having to understand the difference between on-premise and cloud solutions. In terms of the former, your procurement software will run through a server that is based in your office. Its security measures and technical support relies on what you can give it. On the other hand, cloud solutions are handled by software vendors. It makes it possible for mobile implementations of your software.
- Sign up for free trials and demos
All the effort you've dedicated to answering the previous sections should lead you to a list of viable procurement software options. Check if the systems you want are available for free trials and demos. If they are, then take advantage of the opportunity by trying all the procurement software features that were advertised. While you're at it, get in contact with the vendors as well so that you can ask the questions you may have. After all, regardless of the type you choose, procurement software will be responsible for handling several important tasks such as data analytics, smart contracts, and order management. Make sure that it measures up to your expectations.
- Identify costs and ROI
The final question you need to ask is if the procurement software will be worth the price you'll have to pay. Research supply chain software statistics, and see if getting the procurement software you want can help you keep up with the trends in the market. Take a look at your company's financials and determine the ROI should you choose to go ahead with the system of your choice. Ensure that you are making a cost-effective decision as it will determine if you will profit from this investment.
Modernity in Procurement
Current events have made it clear that businesses will need at least a backup plan for your operations. Having the support of technology may be the solution to this problem. However, there are pitfalls to be found if you don't go through the proper process of choosing the right software for your company. As such, take all the time you need and ask all the questions you need to ask. That way, you'll be able to gain confidence in the system you end up choosing.