A well-managed procurement function improves business outcomes significantly. Before making a purchase, the procurement department needs to analyze the market to ensure that the best deal is made. Here are some of the important functions carried out by the procurement department:
Working on Purchase Deals:
Purchase managers need to perform an in-depth analysis of the market before concluding a purchase. Getting the best deal for goods and services in terms of pricing and quality is an important procurement function. Thorough evaluation of all the vendors based on their reputation, timely delivery of orders, and quoted price needs to be done by the procurement team. In addition to evaluating the vendors, market changes also need to be factored in while making the buying decision. An e-procurement system provides a list of approved vendors from which the procurement team can choose the right supplier.
One of the most important responsibilities of the procurement manager is to ensure that every purchase order adheres to the policies and processes defined within the organization and compliant with the procurement laws and regulations. To ensure compliance with laws and regulations, the procurement manager needs to stay updated on the changes in laws and regulations and update the company policies accordingly. An e-procurement system that flags inconsistencies and non-compliance will aid the procurement manager to identify and resolve compliance related issues efficiently.
Establish Strong Vendor Relationships:
Maintaining a strong and reliable vendor base is extremely important in procurement. Continuous review of vendor contracts and relationships is needed to ensure that the organization’s requirements are adequately met. All vendors approved by the procurement department must provide good quality service and goods and adhere to terms and policies while in contract with the company. Procurement KPIs on vendor performance must be reviewed periodically to ensure consistent performance.
Management and Coordination of Procurement Staff:
The procurement manager must enable seamless communication between all the stakeholders. The procurement management system must ensure that daily tasks and operations within the procurement team are well planned and coordinated. Completing tasks before deadlines, quick resolution of issues and process bottlenecks, and quality inspection of delivered goods and services are some of the routine tasks performed by the procurement staff.
Maintaining and Updating Data:
Procurement data needs to be maintained and updated for audit and regulatory compliance. Data on the items purchased, cost price, supplier information, inventory list, and delivery information must be updated by the team. Accurate documentation forms the basis for reporting and budgeting.
An e-procurement software empowers the procurement team to carry out its functions efficiently with optimal resource utilization. Procurement solutions ensure seamless communication and coordination between various procurement tasks, accurate and consistent documentation, and cost and time savings. Procurement staff is free from repetitive tasks so that they can focus on finer details and contribute more towards organizational growth. An e-procurement system enables CPOs to make data-driven business decisions.
Archaic procurement systems are not equipped to deal with the complexity of modern procurement processes. Manual procurement systems slow down the processing speed and introduce errors and discrepancies in the procurement process. Deploying a cloud procurement system eliminates the inefficiencies and discrepancies in the procurement workflow.