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- Old and outdated systems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:
- Build a strong team: By hiring the best data scientists and analysts on the market
- Make sure everything is recorded in a central location
- Migrate to an electronic procurement system
- Integrate as much automation into your process as you can
- Get rid of the time-consuming approval process for routine purchases
- Train your team thoroughly
- 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?
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