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6 Ways to Modernize Your Procurement Process

Strategic procurement is a powerful tool that can give your business a competitive advantage. By implementing the right technology and focusing on efficient processes, you can save money, speed up vital processes, and improve the overall experience for partners and employees. Cloud-based sourcing tools are particularly helpful in enhancing supplier negotiations, accelerating the awards process, identifying and reducing supplier risk, and improving management visibility.

This article covers 6 ways to modernize procurement to improve efficiency and agility.

1. Focus on supplier contract management

Supplier contract management is a crucial aspect of procurement. It involves having the right processes and tools in place to overcome delays, manage ongoing contracts, and ensure compliance with company and industry guidelines. By streamlining collaboration and workflow management, procurement technology solutions enable better collaboration between legal, contracts, and purchasing departments. This leads to improved contract administration, elimination of delays, and better management of the full lifecycle of supplier contracts.

There are certain must-haves for your cloud-based supplier contract management solution. These include features that help in standardizing the contracting process, language clause libraries that simplify legal reviews, approval processes that streamline contract approvals, and contract workflow management that provides insights into the overall workflow and helps overcome unnecessary delays. These features ensure efficient contract management, cost savings, and compliance.

2. Streamline supplier qualification management

Supplier qualification management is essential for protecting your business against compliance violations and other risks. Cloud-based procurement solutions streamline the supplier qualification process by establishing standardized processes, centralizing documentation, and providing customized evaluations. By leveraging technology, you can ensure compliance, stay up to date, and do business with the right suppliers.

Supplier portals can be a valuable tool for businesses, but their success requires careful planning and implementation. To increase adoption, it is important to invest in supplier training, ensuring that suppliers understand the benefits and processes involved. Consider starting with a pilot program involving a select group of preferred vendors to gather data and customize the portal experience. Additionally, effective communication is crucial, providing suppliers with early notice, training resources, and support contacts.

3. Set up for success with supplier portals

Supplier portals improve your procurement process by providing a central platform for suppliers to submit invoices, access contract-related documents, and upload necessary qualifications. These portals offer real-time self-service solutions, simplifying tasks and reducing administrative burdens. By automating core processes and improving document sharing, supplier portals enhance efficiency, visibility, and turnaround time. This allows your procurement teams to focus on strategic processes and building relationships.

4. Leverage self-service procurement to speed up processes

Self-service procurement solutions can improve the employee experience and control spend. By offering an intuitive and user-friendly shopping experience, employees can easily find and purchase approved items. Customizing catalogs for preferred vendors ensures compliance and cost control. These solutions also support unusual workflow steps and enable access to negotiated prices. With streamlined approval processes and mobile accessibility, self-service procurement solutions provide an enhanced buying experience while maintaining oversight and compliance.

5. Empower your employees with mobile procurement

Mobile procurement is crucial in today’s business environment, allowing employees to access procurement systems and make purchases on the go. With mobile self-service procurement, your employees can easily log in, search for what they need, and place orders, ensuring cost savings and compliance. Mobile procurement approvals make it convenient for managers to review and approve purchases, even while on the move. Mobile access also provides complete visibility into procurement data, allowing users to check contract updates, monitor spend, and provide updates to stakeholders. Overall, investing in a self-service procurement solution with mobile capabilities improves efficiency and enhances the employee experience.

6. Improve decision-making with actionable analytics

Analytics play a critical role in procurement by providing insights for cost savings, process optimization, and risk identification. They empower stronger contract management by identifying opportunities to streamline spending and establish effective partnerships. Analytics also support agile buying organizations by automating processes and providing real-time alerts for contract deadlines and renewals. Additionally, analytics help in monitoring procurement activities, providing real-time data for decision-making, and simplifying reporting for better communication with stakeholders. By leveraging analytics, companies can make strategic decisions, improve efficiency, and gain a competitive edge in procurement.

Enabling partners, procurement teams, and decisionmakers to get more done, a cloud-based solution like Oracle Procurement within Oracle Cloud Enterprise Resource Planning (ERP) eliminates barriers to success, speeds up the procurement process, and provides a competitive differentiator for your business.

Read our Modernizing Procurement whitepaper, learn about how we can help you with ERP, and connect with us today.