The Risk Of Not Utilizing Software For Eprocurement Solutions
E PROCUREMENT SOLUTION
E-procurement software delivers wide range of practical benefits that streamline the source-to-pay process. Considering its versatile capabilities, organizations that do not utilize such solution are facing considerable risk. finance executive might discover range of advantages by investing in such product, including better cost control, improved risk management, and superior compliance.
The lack of automated e-sourcing, catalogs, and contract management can cause increased costs due to inefficient processes, overruns, and disorganization. Without software, there is risk of paying more than necessary as suppliers may take advantage of manual sourcing process, leading to an unfavorable contract rate. An immature system also increases the risk of not being able to find the right item in sufficient quantities, whether raw materials, lumber, or chemicals.
Furthermore, manual purchases can create significant internal risk with human error and inadequate oversight. Without the assistance of software solution, organizations could experience glitch in the budgeting cycle or the approval process and even find their profit and loss statement burdened by variety of unexpected expenses.
An additional risk of not utilizing software solution includes increased compliance challenges. The manual procurement process can be tedious and slow, resulting in inefficient reconciliation, leading to financial discrepancies and the difficulty to adhere properly to regulations. Furthermore, the risk of fraud is an ongoing threat that needs to be contained, and an inefficient manual system exponentially adds to that risk.
Finance executives can realize wide range of advantages by investing in software system for e-procurement. Automated processes will reduce costs due to greater efficiency, quick discovery of goods, and favorable supplier contracts. Moreover, the system will reduce internal risk with streamlined and automated processes, plus proper oversight and checks. Furthermore, organizations have better compliance with automated reconciliation and fraud detection. From the C-suite perspective, investing in an e-procurement software system mitigates the risk of expense overruns, human error, budgeting surprises, and regulations lapses.
