The Risk Of Relying On Manual E Sourcing
E SOURCING
E sourcing is an integral component of any procurement function’s source-to-pay process. Without software solution to ensure efficiency and accuracy, organizations are at substantial risk of costs and non-compliance that could potentially lead to operational failures and reputational damage.
Organizations that rely on manual sourcing techniques significantly extend their source-to-pay cycle and fail to derive tangible cost benefits from pricing and sifting through different suppliers and offers. Manual processes for sourcing are plagued by inefficiencies such as error-prone manual entry, lack of automated validation, and inadequate sorting protocol. Further, after offers are negotiated and selection is made, organizations face the challenge of creating manual contracts and Purchase Orders that result in lagging payment cycles and wasteful spend.
A software solution mitigates major risks associated with manual sourcing such as visibility and control loss, security breaches, and inadequate access to final bids. Organizations with specialized software for their sourcing process are successfully able to navigate market conditions, leverage data analytics to identify better offers, and ensure compliance with e-sourcing guidelines.
Organizations gain visible advantages such as optimized financial performance, efficient electronic collaboration with stakeholders and suppliers, improved compliance, simplified contract management, and better risk assessment through software solutions. Furthermore, senior leaders gain insight into budgets and procurement performance with automated dashboards, real-time reporting, and analytics.
In the face of rapidly changing business environment, manual sourcing is no longer equipped to guarantee optimal outcomes. As an effective and resourceful CFO, it is integral to invest in comprehensive source-to-pay software to leverage award-winning features and remain ahead of the curve.
