Any organization or business will, at some stage in its operations, need to develop a procurement strategy in order to create its own sustainable business model. But what does such a strategy entail? In the most simplistic of terms, successful procurement is getting the desired supply for the best value.
This will more often than not prove a harder balance to find than it first seems. Successful procurement strategies are not simply finding the cheapest prices, they are also about treading the fine line between many considerations. This means that it is a supply chain manager’s task to find the balance between such varying factors as quantity, time, transport, service, and materials.
All of these things can affect the organization in a much more profound way in the long-term than if we were to simply select the option with the cheapest surface price. This will most often sort itself out when supply chain managers are able to find those relationships that will deliver mutual benefits to both your own organization and your supplier in the long-term.
But with multitudes of products to manage and suppliers to be found all over the world, how should an organization go about vetting its potential partners in this budding supply chain relationship?
This is where procurement software comes in.
What is E-Procurement Software?
Procurement software is a program, tailored to your specific business or organization, which is able to organize all these factors, whether on a public procurement level or the more in-depth needs of a private organization. The software is able to assist in the development of procurement plans and then automate the entire process, taking out the problems and hardships inherent in approaching such tasks manually.
Two primary categories of procurement software exist: cloud-based and on-premise. On-premise is the more traditional of the two options, being integrated into a company’s own local computer system and accessible from terminals onsite.
However, the relatively recent development of cloud storage technology had led to the advent of cloud-based procurement software as well. This newer version of the software offers a number of advantages over its predecessor. Most notably, the cloud software is entirely mobile and accessible from anywhere, not solely limited to a single on-premise facility. Instead, employees in facilities on opposite ends of the country, or even the world, could make changes and immediately see their colleague’s latest report. Additionally, the nature of the cloud e-procurement software allows it adapt quickly to the changing needs of its organization as well as divert additional processing power to operations at any time needed.
In addition to these two types of procurement software, an organization choosing to employ it must decide on the level of software they would like to implement. This brings us to the three choices: open source, free proprietary, and proprietary.
Why Do We Need This Software?
So why on Earth would your company want this software if you’ve been getting along just fine without it (hard to believe, but let’s say so)? What benefit are you getting out of it?
The answer really is Everything.
Good procurement software will assist you in each step of the process from developing your procurement plans to collecting and analyzing the best bids for you, whether they are local or distant. It will order and maintain all related documents, making them easily accessible in a standardized system across all local terminals (if on-premise) or all facilities and personnel (if cloud-based).
In short, procurement software will create a fully transparent and automated supply chain process for those involved in each link of the chain. And it does so while creating the highest value by utilizing a network of supplier bids, compound orders and safeguards against any undesired actions.
Find Sourcing Partners at TraDove
While automation in sourcing will ease all aspects of the supply chain, finding those trading partners who are the perfect fit is just as important. That is why buyers and sellers from industries all around the world are using TraDove Business Network and its reliable selection of professionals. Each member goes through a multi-stage membership approval system to ensure their legitimacy for the network before they are ever allowed to begin making any trade deal. This helps to protect our existing member base and encourage honest and transparent business around the world.