The procurement landscape has changed a lot since the onset of the coronavirus pandemic.
Chief Procurement Officers (CPOs) have had to adapt quickly to disruptions in local, regional, and international supply chains.
That’s why many have turned to procurement software industry-leaders like ProcurePort for solutions that make life easier.
Top of the list has been a demand for efficient supplier management tools that are intuitive, innovative, and user-friendly.
If you’re searching for such vendor management tools, ProcurePort presents you with the following five high-level supplier management tools.
But before we take a look at these tools, let us break down what supplier management tools actually are.
Supplier Management Tools What Are They?
Drawing on the vendor management definition proposed by global research and advisory firm Gartner Inc, we can infer that supplier management tools are those that:
“….enable organizations to control costs, drive service excellence and mitigate risks to gain increased value from their suppliers throughout the deal life cycle.”
Every CPO understands the need to build, develop and maintain good supplier relations. As such, any resources that encourage and promote these objectives are very welcome.
So, what are the reasons you should consider investing in supplier management tools? What are the advantages?
Benefits of Using Supplier Management Tools
There are several benefits to be had in using supplier management tools. We are going to study three of them.
Benefit #1 Automated Processes
49% of respondents in a survey conducted by Statista are convinced that automating processes invariably leads to improved workforce agility. This automation allows operations to be scaled much faster. In addition, 52% believe that automation will lead to better work operations.
The procurement life cycle can be laborious with numerous steps and back and forth communication between vendors and buyers. With the right supplier management tools, a lot of these steps can be automated.
For example, requests for information can be issued through standardized templates instead of having to create new frameworks for each new vendor.
Benefit #2 Efficient Data Capturing
Data is king in today’s digital-centric world. Companies rely on internal metrics to make strategic decisions. Without procurement software that can accurately capture data, it is difficult to get the necessary information needed to make informed decisions.
Data captured in the procurement cycle enable CPOs and their teams to optimize current procurement efforts, glean actionable insights, discover weak areas, and create value for the enterprise.
Benefit #3 Better Communication with Vendors
In an article published by the Chartered Institute of Purchasing and Supply (CIPS), leadership expert Chris Helder said of communication skills in procurement, these skills are “more important than ever” today.
We couldn’t agree more. When there is no clear supplier management tool that allows for good communication, confusion is the order of the day.
Accountability is low and this can have a detrimental effect on building lasting relationships with vendors. Hence the need for a structured supplier management tool with inbuilt communication channels for dedicated communication.
Now, with the benefits of supplier management tools clear for all, let us examine some of the best tools to invest in.
Supplier Management Tool #1 RFP | RFI | RFQ
Purpose of Tool: Obtaining Quotes With Turnaround Times, Quality, Pricing, Capability
Discover and qualify new vendors quickly with ProcurePort RFP software. Requesting for proposals, requesting for information, and requesting quotes has never been easier nor faster.
This streamlined software enables you to effectively compare supplier quality, pricing, capabilities, and turnaround times side-by-side. Automate the process and request supplier information from several vendors in one sitting.
Supplier Management Tool #2 Reverse Auctions
Purpose of Tool: Researching & Sourcing Suppliers
Armed with information gleaned from the RFP software, compile a list of vendors that you would like to invite to your e-auction.
Receive verified bids in real-time with ProcurePort reverse auction software. With the ability to save you 18 to 40 percent of addressable spend, this revolutionary auction technology can also assist you in setting up a well-organized bidding match.
Secure – being hosted in a Tier IV facility – and easy-to-use, this intuitive reverse auction software opens the door for bid negotiation and multi-round staged negotiations.
Watch suppliers compete with each other in real-time for your business.
Supplier Management Tool #3 Contract Management
Purpose of Tool: Negotiating & Managing Contracts
Following the reverse auction, you should now have viable supplier data. After identifying suppliers that you wish to enter into serious talks with, you can make use of the ProcurePort contract management software as you proceed to discuss and negotiate contracts.
This cloud-hosted software makes it possible to manage suppliers efficiently. A clear dashboard brings to your attention contracts needing renewal and those about to expire thereby encouraging best contract management practices.
Supplier Management Tool #4 Spend Analysis
Purpose of Tool: Evaluating Spend & Vendor Performance
Don’t know where your money is going or whether you have the best deal with your supplier? Need a tool to help you track your internal spending?
With ProcurePort’s spend analysis software, process, clean up, classify, and organize your spend data at the touch of a button. Find easy ways to save when you gain spend visibility.
Supplier Management Tool #5 Purchase Requisition
Purpose of Tool: Place Purchase Orders Systematically
What is the best way to manage all those requests coming in from various departments about the services and or products they need?
Using purchase requisition software of course.
Before creating the purchase orders, you will send them to suppliers, ensure you have received all the requests in one central place for easy reference.
Procurement software like ProcurePort’s requisition system supports easy creation and sharing of purchase orders as well as tracking and monitoring of spend.
Supplier management tools allow you to streamline procurement processes. From improving vendor communication, simplifying reverse auctions, to managing contracts, the advantages are numerous.
If you would like to discuss investing in supplier management tools with a consultant or to schedule a demo of our procurement solutions contact us today.