Unveiling The Dangers Of Not Using E Procurement Software
E PROCUREMENT WORKFLOW
Procuring goods and services for an enterprise or organization is complicated and tedious process. It requires great degree of accuracy and oversight to ensure that the stakeholders are provided with the most suitable and competitive options. With technology advancing and efficiencies trending upwards, it is essential for businesses to opt for procurement software in order to increase process efficiency and reduce associated risks.
An procurement software solution automates the procurement process, streamlining it from source-to-pay. This makes it easy for finance executives to manage procurements for multiple departments and business units.
Not using procurement software often leads to unnecessary purchase transactions, lack of accuracy, inefficiencies and increased vulnerabilities within company. As finance executives begin to evaluate their options to procure source-to-pay software, it is vital to comprehend the repercussions of not using software.
For start, lack of software system often results in incorrect invoicing, which can reflect poorly on the companies reputation. Inaccurate invoice tracking and order processing can lead to added costs and liabilities. Without an automated source-to-pay workflow, finance executives are forced to manually keep track of orders and invoices, which could take an immense amount of time and resources. This time could be better spent focusing on lower-level tasks or higher-level strategic objectives.
A second concern for an enterprise is the risk of fraud or theft. Manual submission of orders, lack of audit trails and lack of control for invoice processing increases the vulnerability of company, making it an easy target for fraudulent employees. Moreover, updated security patches, data breaches and external threats present potential issues in manually operated procurements. Automated procurement systems are equipped with features that protect data and allow for an audit trail, which ensures the security of sensitive data.
Another great advantage of automated systems is the ability to incorporate compliance requirements. In this day and age, businesses are bound by regulations to comply, which is challenging without software platform. Automated procurement systems are configured to adhere to compliance, allowing vendors and suppliers to go through strict prequalification process and ensuring that each invoice has accurate and valid information.
Overall, manual procurement procedures often fail to protect business’ integrity and can lead to disastrous results in the future. Enterprise procurement officers should be the first line of defense within company and it is important for them to understand the considerable ramifications of not using software for their workflow.
