Procurement software has opened the door wide for transformation to take place within organizations bringing about automation, improved spend visibility, and spend control.
The benefits have been numerous and ramifications felt along the supply chain.
This has prompted widespread adoption of procurement software by enterprises leading to the market’s rapid growth.
The procurement software market’s compound annual growth rate (CAGR) is anticipated to be 10.2% between 2020 and 2025 bringing in total revenue of $5.94 billion in 2021.
It’s evident that technology will be an integral part of procurement efforts moving forward.
So, in order to fully appreciate the advantages discussed below, let us first define what procurement software is. This will assist in also understanding the solutions offered by leading procurement software company ProcurePort.
What Is Procurement Software?
SearchERP defines procurement software as:
“…a computer program or suite that allows an organization to automate the processes of purchasing materials and maintaining an inventory of goods.”
Such software will make it easy to:
· Generate purchase orders
· Authenticate purchase orders with vendors
· Submit requisitions expeditiously
· Issue out reminders for purchase order confirmations and,
· Provide inventory visibility among various other tasks.
Now that we’ve got a good grasp of the meaning of procurement software let’s delve deeper into the associated benefits.
Top 6 Procurement Software Benefits
If you’re on the edge about investing in procurement software and are keen to learn more about the advantages, we present to you six of the leading benefits.
Benefit 1: Easy to Assimilate and Integrate
Procurement solutions, especially those from the industry’s leading procurement software company ProcurePort are designed with ease-of-integration and assimilation in mind.
Departments such as accounting and finance will have little difficulty adapting to ProcurePort’s offerings. What’s more, tailored solutions are also possible.
Benefit 2: Promotes Efficient Handling of Invoices
Gone are the days of manually writing out invoices and posting them physically. Today, electronic invoicing is the order of the day.
By getting on board with digital procurement solutions, enterprises are only moving with the times and responding accordingly.
It’s not hard to see how supplier management software provides a streamlined way of conveniently handling paperwork.
Benefit 3: Gain Visibility into Company Spend
Why are you always struggling with cash flow? Where is your money going? If you’ve ever asked yourself these and more spend-related questions you’re not alone.
This is why procurement software is highly appreciated by scores of procurement organizations and CPOs globally because it allows for clear audit trails to be established.
You can see exactly where your money is going and who you’re paying and for what.
Benefit 4: Provides a Central Communication Portal
Emails chains are not fun. The continual back and forth trying to make sense of who said what and when can be tedious and confusing.
Thanks to procurement software, a centralized platform ensures easy communication thereby enhancing collaborative efforts.
All important stakeholders involved in the purchasing process have clear visibility of what’s going on meaning requisitions are approved faster and invoices cleared sooner.
Benefit 5: Automation of Due Dates
Do you often struggle with keeping tabs on contract due dates and delivery days? When dealing with more than a handful of contractors it’s easy to lose sight of impending deadlines.
With procurement software, however, dates are synchronized automatically and reminders are sent without your input.
Stay on top of deliveries and contract management with such technology.
Benefit 6: Digital Solutions are Eco-Friendly
Did you know that more than 15 billion trees are cut down every single year just to make paper? By going digital, enterprises can play their role in helping keep this number down.
The fewer paper documents, the better. By opting to use procurement software you reduce the number of requisition and purchase orders, delivery notes as well as invoices that need to be printed.
Conclusion
Widespread adoption of technology in procurement has resulted in more efficient inventory management; promoted financial transparency when sourcing in the supply chain; facilitated procurement of better rates from suppliers; and even improved the vendor management process.
Top procurement software company ProcurePort recognizes this and is therefore committed to helping enterprises with their procurement efforts. So, take advantage of industry-leading procurement solutions such as our robust supplier management software to strengthen vendor relationships.
To discuss procurement software with a consultant or to schedule a demo of our solutions, contact us today.
