Running a business or organization requires dedication and strategic thinking. Some of the best organizations align their business practices and operations with their vision and mission statements. This way the company can be sure that all of the internal functions and operations conducted are purposeful and serve the same ultimate goal. As such, optimizing time and efficiency within an organization is almost always a c-suite level priority.
The procurement department is an organization-wide function that has significant impact up and down the entire business ladder. In other words, implementing a powerful and tactful procurement strategy is crucial to developing a competitive edge within your organization, while also offering c-suite executives a wide array of benefits.
The Procure to Pay Process
The procure to pay process itself is a vertical integration of the procurement and payroll process. In other words, the procure to pay process streamlines the internal tracking of the procurement department.
In turn, this means that purchase requisitions, purchase orders, invoicing, and payment are all managed and handled through a single procurement software. This sophisticated procurement management tool allows businesses and procurement professionals further insight into their procurement process.
Simultaneously, the software allows procurement professionals to streamline procurement tasks such as submitting a routine purchase requisition or purchase order. Making approvals. Submitting payment, and inventory tracking as well.
The C-Suite Benefits
The procurement department significantly impacts business metrics that c-suite level personnel deeply care about. Because procurement is directly related to the supply chain and developing strong vendor-relationships, a top-shelf procurement department can drive important business metrics significantly.
Some of the metrics that procurement teams can impact include customer loyalty, average customer lifetime value, year-after-year business, vendor-relationships, procurement savings, and a whole slew of others.
Additionally, however, there are many benefits that implementing a procure to pay process offers the c-suite personnel and the organization as a whole.
This is one of the strongest arguments in and of itself. Efficiency is the golden-egg of the business world, and the c-suite universe as well. Top-level executives are squeezing more and more out of their time each and every year. The pursuit of optimal efficiency is, essentially, eternal.
However, implementing a procure to pay process can significantly boost an organization’s operational efficiency. By tying procurement processes together into one platform the procure to pay process centralizes a branch of inter-related procurement functions.
Important Insights and Data
Utilizing the procure to pay process offers c-suite executives access to more information than would be previously available. This is important data that relates to buying and spending trends both year-over-year, by quarter, and as granular as desired.
This data can highlight areas that need improvement, and areas in which the department is currently excelling. As with any field, the more data that is available, leaders are able to make more informed decisions. In terms of procurement this can be the difference between a huge percentage in savings.
For instance, implementing the procure to pay process could highlight excess spending by any single department. On the other hand, the procure to pay process could very well discover dollars in the budget that are being underutilized.
Executives don’t want to be bothered with every day mistakes or errors in systems that should be vetted to minimize errors and slip ups.
With the procure to pay process, there are ways to build automation and use business logic into the system in order to help guide users and ensure that the right information is going to the right place at all times. This can save departments from accidental purchase orders, double purchase orders, and other mis-orders or systematic mishaps that could disrupt the inventory flow.
Implement a Procure to Pay Process with ProcurePort
The procure to pay process offers organizations an exciting amount of opportunity. C-suite level executives should have their organizations best interest at heart. With that said, utilizing the procurement department to the best of their ability yields in massive benefits organization-wide.
For more procurement knowledge and to explore procurement software solutions, visit ProcurePort. ProcurePort is the premier source for everything procurement. From technology, to the latest trends and best-practices, to industry knowledge from experts. Get in touch with ProcurePort and start optimizing your procurement department.