Evaluating The Risk Of Not Utilizing Eprocurement Software
E Procurement Companies List
From C-Suite perspective, it is essential to evaluate the risk of forgoing source-to-pay eProcurement software. Such software automate procure-to-pay processes spanning from tail spend optimisation and invoice management through to contract management, supplier performance management and beyond. Without eProcurement software in place, companies are exposed to various risks ranging from missed payment discounts to critical supplier or contract performance issues.
In terms of missed payment discounts, the automated process provided by eProcurement software can quite literally save company thousands of dollars year. Without the appropriate software in place, executives must rely upon manual systems that are prone to error and are labour intensive. Companies may also lack the agility to pivot in key areas of the procure-to-pay process and hence miss out on early payment discounts or other efficiency gained advantages.
In addition to financial risks, eProcurement software can be critical in managing the complete life-cycle of suppliers and contracts, including utilising vendor performance analytics to quantify, detect, and benchmark value before, during, and after contracts are signed. Without the tools to source, evaluate, and compare, companies may place themselves at risk for contract non-compliance and/or supplier fluctuations, as well as limited visibility into all phases of the procurement and supplier management processes.
Organisations can also be vulnerable to supplier consolidation due to lack of the correct software tools which can help executives make the best decisions about how to progress. The process of consolidating suppliers involves comprehensive research to find the best cost-to-value ratio. With eProcurement software, executives can utilise analytic reporting to benchmark, review and analyze historical as well as current information. lack of such system can mean missing out on viable opportunities.
It is clear to see that when companies neglect to adopt eProcurement software they are exposed to variety of financial, supplier and contract performance risks. To reap the benefits of completely integrated procure-to-pay process, while capitalising on the most valuable cost savings, companies should seriously consider the implementation of leading-edge software that can help executives make better informed decisions and unlock maximum potential in the source-to-pay process.
