On the Fence About Procurement Automation? Time to Jump off Now!

March 5th 2024 11:00:00 AM

Procurement processes play a crucial role for businesses. Every organization must deal with requisitioning, purchasing, and approving services and materials in some manner. Procurement for manufacturers must run efficiently to achieve smooth production lines and fill customer orders efficiently. Upgrading to a procurement automation system is the best option to stay competitive, streamline processes, and boost cash flow. 

Why Consider Procurement Automation for a Manufacturing Business?

For manufacturers, automating their procurement processes makes sense for several reasons. Consider the following benefits of procurement automation:

• Reduces Costs 

Procurement automation is a highly effective way to reduce costs. Lower costs are achieved by automating tasks, analyzing the company’s spending patterns, and developing improved supplier relationships. 

Companies can reduce labor costs by automating manual tasks associated with administrative work, purchase requisitions, and order processing. This step increases efficiency and frees up staff time to perform other workday activities. 

• Streamlines Procurement Processes

Once procurement software is launched, it effectively streamlines a company’s procurement processes by automating several manual tasks, including the following:

1. Purchasing
2. Requisitioning
3. Sourcing

Automating these tasks accelerates the entire processing cycle. The likelihood of human error is significantly reduced. Workflow as a whole becomes more efficient.

• Boosts Efficiency

Implementing procurement software makes the organization more efficient. The software streamlines procurement processes by minimizing manual processes. It reduces human errors and eliminates the need for paper records. 

The procurement software automates tasks that team members previously performed, such as purchase requisitions and processing orders. The company benefits from a seamless workflow. With “everyday” activities being handled by the software, the procurement team can focus on more important matters.

• Improves Relationships with Suppliers

Procurement teams who use automation software have the advantage of better communication and transparency between their company and current and potential suppliers. The software gives them access to real-time crucial information like invoices and purchase orders. 

• Increases Compliance

Procurement software automates company policies. The technology ensures that purchasing activities comply with internal guidelines and applicable regulations by incorporating automated checks.

• More Informed Decision-Making

Procurement automation software gives manufacturers the data and insights to make informed business decisions. It provides managers with a complete view of the company’s procurement processes by analyzing relevant data. Managers use the data to make informed decisions about their suppliers’ performance, spending patterns, or ways to cut costs. 

• Expands Visibility into Company Spending

This technology gives businesses real-time access to spending data, which means the organization can find patterns and trends in where the money goes. With this information, the management team can make better-informed purchasing decisions. 

When management can access accurate spending data quickly, it allows the team to analyze where the company’s financial resources are being allocated. Decisions can be made proactively to make efficient use of company resources. 

• Elevates Company Agility

Procurement software makes it much easier for a manufacturing company to adapt to changing market conditions and customer requirements. The technology has introduced flexibility into the procurement process. Once workflows are streamlined and procurement teams can access real-time insights, they can quickly pivot to make informed decisions. The pace of modern business changes so fast that the ability to swiftly make changes is required. 

Procurement automation software provides so many tangible benefits for manufacturers that it’s clear now is the time to jump off the fence and consider this type of product. 

Scanco Procurement Automation for Sage 100: an Impressive Features List

Scanco Procurement Automation for Sage 100 (“Procurement Automation”) was developed to help optimize cash flow and avoid material shortages. This impressive software package offers the capability to intelligently analyze your supply and demand to give your procurement team the ability to purchase the right products and raw materials at just the right time. Your business will be able to avoid the issue of carrying excess inventory, which can hurt cash flow. 

Analyze Supply and Requirements. Procurement Automation takes this data and your company’s current supply and quantities on purchase orders to create a list of materials that must be purchased. 

The software can calculate your company’s inventory needs based on stock levels, sales orders, work ticket production, and incoming purchase orders within a specific date range. Limit orders to what your business needs for any given period. 

Detailed, Editable Items. Procurement Automation allows a manufacturing company to set up items in up to 10 layers for complete accuracy. Ensure that subcomponents are accounted for during any procurement queries.

Personalized Security Settings. Set up security settings for team members appropriate to their functions on the team so they can access the features they need. 

Generates a List for your Buyer to Review. Based on the data gathered, Procurement Automation generates a list for your buyer’s review. The list is presented in an easy-to-interpret graph. Once your buyer approves the list, they can quickly and conveniently generate the required purchase orders with the click of a button. 

Automated Vendor Payments. Paying your company’s vendors can be part of the procurement process. Rest assured that digital, cloud-based payments are secure. Pay your vendors directly using virtual payment cards, ACH Plus, or eChecks. 

Real-Time Connection with Sage 100. All the features listed above are available with a web-based service embedded into Sage. The real-time connection gives your team accurate visibility. The procurement team can create and save the company’s queries for regular orders. The software consolidates purchase orders for your procurement team to process for a quick turnaround. 

Would you like to learn more about Scanco Procurement Automation for Sage 100? Contact us online or call (330) 645-9959 to make an appointment with a Scanco Solutions Expert today. We can help you find the right solution for your company.