Janet joined the PairSoft team upon its merger with Paramount Workplace, where she was also an integral part of the sales team for years. Janet resides in Michigan with her family.View all posts by Janet Martin
Janet Martin • October 1, 2021
Table of Contents
While every company faces its own unique procurement challenges, there are a few common refrains we hear as we work with organizations to improve their procurement management procedures. We’ve outlined the top five here, followed by an effective resolution to these (and other) procurement challenges.
With so many purchasing options, how do you find the sellers that are doing it right?
We cannot base purchasing decisions on price alone—speed of delivery, larger product offering, overall suitability to the application, and vendor service levels are also paramount.
If you process a large number of low-dollar purchase orders, spending staff resources to manually review and scrutinize variances is not cost effective. You simply don’t want to spend an hour to find a twenty-cent difference between a purchase order and an invoice.
Using defined invoice matching variances, to automatically match invoices that are above or below a certain threshold, saves the Accounts Payable staff valuable time during the invoice matching process. This is a very effective function, and one not included in most procurement systems.
Cutting costs is a common challenge across every business function, but it is even more challenging when your core business function is to spend money.
As a procurement manager, you must be able to demonstrate that you’ve performed due diligence in seeking quotes, analyzing vendors and proposals, and managing the entire purchasing process.
You cannot monitor what you don’t manage. When large classifications of purchasing are left unmanaged, we introduce vast inefficiencies and lose opportunities to save time and money as well as increase our own service levels.
Procurement is often seen as a necessary, but not strategic, component of business operations.
While we see this perception beginning to change, it’s always a challenge to prove our relevancy, to demonstrate that procurement management is an integral part of corporate performance, not simply a series of necessary transactions.
Many business challenges can be effectively solved with technology tools, and procurement challenges above are no exception. Procurement management software can help automate the entire requisition and procurement process, compare proposals, track vendor performance, reduce unmanaged spend, gain real-time visibility and control, and deliver a strong, demonstrable ROI across your entire organization.
When integrated with your ERP solution, your organization’s purchasing data is transmitted quickly, and is instantly available on financial and operational reports.