There is a long list of benefits that your company can realize by automating manual processes in procurement.
The 12 I will share are based on conversations with CPOs. They are the most frequently mentioned pain points they want to eliminate.
Some examples include:
- Supplier onboarding
- Contract approval routing
- Sourcing management
- Project management
What I find interesting in these conversations are the arguments against process improvement like:
“I know our system is clunky, but it does work.”
“It isn’t perfect, but we manage to get what we need done.”
“I am not sure I can justify the investment based solely on time savings.”
What I do know is people get excited when they are provided with tools that save time and eliminate mundane tasks.
Here are 12 benefits for your consideration:
- Positive signal – formalizing any process will be a sign to all employees that you are committed to continuous improvement
- Cycle time reductions – many low value tasks can be automated including supplier registration and updating, invitations, reporting and error checking
- Real-time status – dashboards can be viewed by stakeholders, business owners and collaborators and they will stop emailing or calling for updates
- Mobile approvals – many tools allow for approvals from mobile devises – this is a huge benefit for staff that travel or work remotely
- Strengthening controls – eliminating offline tools like spreadsheets, PDFs and email that are prone to error and virtually impossible to track or maintain is a significant benefit
- Increasing competition – suppliers welcome an easy to use process that allows them to update their information and participate in events without the headache of filling out Word docs and spreadsheets or emailing updates
- One version of the truth – all communications in one place eliminates “lost” emails and provides a clear trail of the process
- Identifying bottlenecks – dashboards and status reports can clearly show what or who is holding up the process
- Knowledge capture and analysis – faster access to data enhances planning and decision making
- Boosting data security – this is priority for every organization
- Controlling maverick activities – simplifying the process should motivate stakeholders and collaborators to get on board
- Protection of company secrets – when a key employee leaves, tribal knowledge can disappear. When your process is in a centralized system with a history of all past activities and events the next person can be trained and ready to go quickly.
The upside is significant and should strengthen your competitive advantage or prevent you from falling behind if and of your competitors have embarked on a company-wide process improvement initiative.
Take the first step and you won’t need to spend seven figures to get it done.
Ask better questions, make changes and 2019 will be your best year ever.
Action Step: If you are uncertain where to start the process of change, a procurement professional like myself can provide guidance and expertise to help your organization achieve the results you want.
If you want to go explore this topic in greater detail, please contact me. I invite you to request 30-minute discovery conversation. In my experience the next step will be apparent at the end of the call. I never assume that what I have to offer will be right for everyone, so don’t expect a sales pitch. You can reach me at (973) 718-7071 x875. The call will be forwarded to my mobile phone if I am not in my office which is pretty likely.
If you would like to know more ways to reduce costs without changing the way you do business, simply give me a call or send me an email with your contact information and the best time to reach you.
You Won’t Drift to Success©
Commit to taking the next step.
Until Next Time, I Wish You Great Success in Your Business and in Your Life