Home » Payments - Making » Accounts Payable Management

100% procurement visibility is vital, anything less is costly and dangerous

Procurement is one of those activities that many staff like doing themselves, to provide the personal touch and give them a feeling of importance, but that is the way to waste many $ millions. 100% visibility is the goal, but most companies don’t achieve anywhere near that, e.g a Spend Matters survey in 2015 estimated that more than 70% of businesses don’t have full visibility into their supply chains and so they cannot optimise their procurement. Gartner estimate that a lack of visibility and spend analysis by buyer can cost at least US$14 million/year. 

eRequester® 7 steps 

eRequester, who have been providing solutions for simplifying spend management selection, integration, and deployment processes since 1999, believe that the major challenges in achieving 100% visibility and prevent rogue spending, optimise costs and accurately estimate cash positions include:

  • Old and outdated systems
  • Fragment data
  • Lack of product classification
  • Lack of training.

The seven steps eRequester recommend to achieve 100% procurement visibility are:

  1. Build a strong team: By hiring the best data scientists and analysts on the market
  2. Make sure everything is recorded in a central location
  3. Migrate to an electronic procurement system
  4. Integrate as much automation into your process as you can
  5. Get rid of the time-consuming approval process for routine purchases
  6. Train your team thoroughly
  7. Communicate clearly and regularly to keep your team informed.

eRequester believe that this will produce “a healthier, more competitive company and a more robust bottom line.”


CTMfile take: Unless all parts of the supply chain are 100% visible, how can they be managed?


This item appears in the following sections:
Payments - Making
Accounts Payable Management
Paying Suppliers

Also see

Comments

No comment yet, why not be the first?

Add a comment