Digital Procurement Risk: The Consequence Of Not Leveraging Software
Digital Procurement Service
Digital procurement, rapidly growing field of managed services, is transforming how business purchase host of goods, materials, and services in the e-commerce space. Yet, while this digital solution is proving beneficial to many enterprises, there are inherent risks of not leveraging the appropriate software.
The impulse to use digital procurement services often comes from the insight that manual material, goods, and service procurement can be expensive, overly bureaucratic, and time-consuming. However, even though there are all too obvious attractions of these services, neglecting to invest in and use the software necessary for them carries significant risk.
The most apparent of these concerns is the lack of security associated with the data collected and utilized. Without the proper software, companies are exposing themselves to host of cyberattacks from those looking to seize information that could later be used to infiltrate networks or commit financial fraud. Defending against such threat is immensely difficult, and should anything malicious get through, the potential financial and reputational damage could be crippling.
Lack of software can also adversely impact the accuracy of information. Human data entry can be prone to errors, as can manual data transfer. But with the advanced and often integrated features of digital software for procurement, it is possible to automate and track the transfer of such information, reducing the likelihood of errors or miscalculations. The automation facilitated by software also reduces manual labor needs and subsequently streamlines the process, making it faster and more efficient.
Furthermore, degree of customization is possible with the right software. Numerous procurement and inventory solutions are configurable and scale to fit the specific needs of each organization, enabling them to tailor the process in ways that are most beneficial. They can establish approval workflows, report on cost and usage, and improve the effectiveness of supplier recontracting, among other things.
Because of such tempting benefits, it is easy to understand why many business are turning to digital procurement services. Since the volume and value of purchase orders and invoices continue to grow exponentially, proper software is must-have. Those who maintain the status quo run greater risk of data breaches, errors, and overall ineffectiveness, which can have serious repercussions down the road.
In conclusion, digital procurement provides huge advantages for those working with large quantities of purchase orders and invoices. However, for it to work effectively, there must be attention placed on the underlying software. Neglecting to invest in the coding needed to process and manage the data can lead to plethora of costly consequences. Ultimately, finance executives must weigh the reward of digital procurement services against the risks of not using software for them.
