March 8th 2023 11:00:00 AM
9 Benefits of Procurement Automation for Your Company
March 8th 2023 11:00:00 AM
Supply chain management has many moving parts and is complex. Still, your company can streamline its purchasing process to save time and resources. Procurement automation can help your team build effective workflows that automatically generate purchase order forms, allow approvals from multiple team members, and ensure compliance. The automatic purchasing system eliminates delays due to human error and pays vendors automatically.
Benefits of Procurement Automation
Why should you automate your procurement system within your company? There are several advantages.
1. Employees will be more productive.
Processing purchase orders and other documents manually takes up a lot of time. It can also create bottlenecks in your supply chain since there is a lag in the time it takes to receive a purchase order, process it, and then place orders for inventory or raw materials.
When tasks like document processing are automated, it saves the company time and money. Your employees have more time to spend on tasks such as building positive relationships with customers and prospecting for new business.
2. It provides visibility into past spending.
Procurement automation software provides the team valuable information about previous purchases, order history, supplier quotes, and current contract statuses. These figures help make management decisions for the company.
3. Operational costs are lowered.
Orders are organized based on stock levels, work order production requirements, incoming purchase orders, and sales order demand. Inventory or raw materials aren’t being ordered based on guesswork. The company is much less likely to be stuck with products that it can’t move in a reasonable time, which keeps operational costs down.
4. Procurement automation improves customer service.
Customers have become more demanding over the past few years, and they place orders and want them delivered quickly. To stay competitive, companies must meet or exceed these expectations. Automating your procurement processes leads to more reliable delivery lead times due to improved efficiency. It also ensures that order information is always current, and customers always know where their orders are.
5. Managers can make decisions based on real-time data.
Management makes decisions for the company based on the best available choices. This real-time data gives managers the insights and visibility to make accurate decisions.
6. Reaction times are improved.
Managers can make decisions more quickly when they have better access to changing conditions. Procurement automation allows managers to have access to reports generated regularly. These reports enable company decision-makers to plan, adjust, and respond to the ever-changing marketplace. The company can take advantage of vendors’ special offers and pivot quickly if a supplier cannot meet its ordering needs.
7. It promotes better relationships with suppliers.
Companies that wish to establish long-term relationships with suppliers must establish clear lines of communication and transparency. Procurement automation allows for real-time communication between the company and its suppliers. The two parties can easily track order status and time and cost savings. They have the facts to settle the dispute quickly if an issue arises.
In an automated purchase system, buyers can assign their orders to the best quote. Suppliers can quickly respond to bids.
8. Procurement automation offers increased data security.
As more businesses switch to a digital format for their record keeping, the possibility they will be the target of cyberattacks becomes more likely. Defending against online threats is costly for modern companies. They must resolve the initial threat and deal with any potential fallout from potential brand damage.
Procurement automation allows companies to enable security settings so only specific employees can access the system. It also enables team members to access the system only for job-specific functions.
9. It creates a centralized library.
The terms and conditions for contracts with suppliers may have the same boilerplate language. The names and dates of execution will vary. Company procurement software stores the contracts electronically in a centralized location along with other crucial data, including guidelines.
Scanco Procurement Automation for Sage 100 Helps You Avoid Material Shortages
If your company is already using Scanco Purchase Agent, JobOps CEM, Sage Inventory Requirements Planning (IRP), or Material Resource Planning (MRP), consider upgrading to Scanco Procurement Automation. This procurement automation software will help your organization avoid material shortages and optimize your company’s cash flow. It can analyze your supply and demand to help you buy the right products at the right time and avoid inventory overstocking.
Features. Scanco’s Procurement Automation softwareallows your authorized team members to determine your inventory needs quickly. They can select a specific date range. The software automatically calculates your company’s inventory needs on stock levels, work ticket production, sales order demand, and incoming purchase orders.
Procurement Automation is embedded with Sage 100, giving you accurate visibility. Team members take on your chosen roles, and security settings give specific employees personalized access.
Your buyers can choose the best vendor for each order based on priority, price, or delivery time. They can gain access to pricing schedules to make the best possible decisions.
Create Purchase Lists. Scanco Procurement Automation analyzes your order history, current supply, minimum stock requirements from your suppliers, and quantities on the purchase order. Based on these figures, the software creates a list of materials to be purchased. The list is then presented to your buyers to review in an easy-to-read graph format. Your buyers step in at this point to review, edit, and make any necessary changes to the list. Scanco Procurement Automation will generate purchase orders to an approved list with a simple mouse click.
Pay your Suppliers with Ease. Scanco Payment Automation works with the Procurement Automation software. Set up automated vendor payments to pay your suppliers using a cloud-based system using ACH Plus or eChecks.
Would you like to learn more about Scanco Procurement Automation? Contact us online or call (330) 645-9959 to make an appointment with a Scanco Solutions Expert today.