Procurement is one of the most critical components of any manufacturing business. Despite its significance, however, it can be a major issue for any organization. Here’s a look at some of these pain points and how automated purchasing software can help resolve them.
Tracking and following up PO acknowledgment can either be a cakewalk or an exercise in frustration and anger management. There are many challenges for an organization that manually tracks acknowledgments, so software that tracks all POs automatically can boost efficiency and eliminate confusion.
With automated purchasing software, the buyer does not have to call the supplier for the PO acknowledgment. Customers don’t need to follow them up constantly on the phone lines.
Buyers walk a tight balancing act between internal stakeholders and suppliers. Typically, the buyer is the main point of contact within the organization for PO status updates, changes, and follow-ups for late items. On top of that, they also need to request for quotations, coordinate with multiple suppliers to receive the best prices on items, and purchase them.
The amount of information that buyers constantly need to keep track of is staggering, and some buyers often have to resort to multiple trackers to be able to make sense of the system. This could add up to hundreds of working hours in a year spent on updating trackers.
With automated purchasing software, buyers have a more immediate grasp of what’s going on with their POs and can respond accordingly. PO changes are easily tracked and recorded for future reference, while internal stakeholders have immediate access to PO status updates without having to hound the buyer.
In the end, most procurement issues are attributable to human error, so eliminating the human element from areas of the PO flow that do not need human intervention can help make the process more efficient.