Streamlined Solutions: Issues Resolved Through Automation
Take Control of Your Procurement Woes: Automate Now!
Many business managers think, "Our procurement is just ticking along." But that's often far from the truth. Many businesses overlook the hidden losses in their everyday operations. While employees send documents through email, negotiate prices on messaging apps, and search for old agreements in archives, the business suffers:
- Lost profits: Due to overpayments and poor purchasing choices.
- Wasted time: On mundane tasks instead of strategic planning.
- Competitive disadvantage: While other companies modernize their processes.
Procurement automation is not about, "We're doing great already." It's about detecting hidden issues, fixing unseen losses, and avoiding future ones. In this article, we've identified five crucial issues that can be swiftly tackled with automation.
Problem 1: Inefficient Processes
A study by the Institute for Supply Management reveals that about 30% of procurement employees' time is spent on routine tasks like order processing and document management. This results in significant delays and increased procurement cycle time. This issue is visible in many companies where:
- A single request takes up to 47 minutes to complete.
- Document approvals take 3-5 days.
- Finding suppliers consumes 6-8 hours.
Solution: Implementing automated procurement management systems can reduce order processing time by up to 50%. Companies using such solutions report a 2-3 times decrease in time spent on mundane tasks. In some cases, the same work requires 5 times less time.
Problem 2: Sloppy Documentation
Documentation errors can result in significant financial losses. Research shows that up to 20% of all orders contain errors, which can cost a large enterprise up to $300,000 annually.
Solution: Automation minimizes manual errors through built-in checks and predefined templates. In companies using automation, documentation errors have been reduced to 5%, saving resources and time substantially.
Problem 3: Lack of Transparency
Without procurement transparency, it's challenging to assess efficiency and find bottlenecks. Up to 70% of companies lack a comprehensive understanding of their procurement, making it difficult to make sound business decisions.
Solution: Automation systems provide a complete overview of the procurement processes, enabling real-time tracking of purchases and setting up a notification system for deviations from norms. This level of transparency helps identify potential savings opportunities, allowing procurement costs to be reduced by 10-15% according to studies.
Problem 4: Limited Strategic Partnerships
Many companies focus only on short-term gains and ignore establishing strategic partnerships. Deloitte reports that 60% of organizations do not use modern technologies to analyze supplier reputations, reducing their competitive edge. Building long-term relations with suppliers is often overlooked.
Solution: The use of automation tools simplifies complex supplier data analysis and aids in establishing long-term partnerships. Companies adopting automation have increased their number of strategic partnerships by 30%, resulting in improved working conditions and reduced prices through the establishment of a competitive environment.
Problem 5: Leaked Information Across Communication Channels
Many companies struggle with chaotic communication with suppliers through email, messengers, and phone calls. Consequently, 30% of procurement professionals' time is wasted searching for old agreements or clarifying conditions. Hence, 15% of purchases are delayed due to lost commercial offers or specifications, and conflicts with suppliers stem from differing interpretations of conditions.
Solution: Implementing an automation program eliminates the need for manual communication, unifying all negotiations in one window through the built-in supplier chat. Conversation history, commercial offers, technical specifications, and all other agreements are logged in this central system, promoting efficiency and minimizing time wastage during report preparation.
Conclusions
- Lower operational costs
- Improved planning accuracy
- Enhanced process control
- Stronger partner relationships
To achieve the best results:
- Carry out a thorough analysis of your current procurement processes.
- Set essential performance indicators for efficiency evaluation.
- Develop an implementation plan with clear deadlines.
- Provide employee training and support.
- Continuously monitor outcomes and optimize processes.
Modern procurement automation systems have demonstrated their effectiveness across various industries and can be tailored to fit any business's unique requirements. Every day, hundreds of procurements from sectors such as banking, manufacturing, IT, retail, telecom, and others flow through the Bidmart automation program.
Cases | Tips | Bidmart | Process Automation
- In the realm of business, technology-driven automation of procurement processes could potentially lead to significant savings by reducing operational costs, improving planning accuracy, and enhancing process control.
- By leveraging automation, companies can forge stronger partner relationships, capitalize on hidden issues, fix unseen losses, and avoid future ones, thus gaining a competitive edge in the finance and technology sectors.
