{ "componentChunkName": "component---src-templates-category-js", "path": "/category/procurement/", "result": {"data":{"site":{"siteMetadata":{"title":"Quickbase Elite Partner and Leading IT Consultants | Quandary","author":"@quandarycg","description":"Struggling to scale your business? We build, test, and deploy a range of custom systems designed to reduce costs and give you more time. Price-lock guarantee."}},"categorizePosts":{"edges":[{"node":{"id":"-e5f662b8-5d08-599a-b2af-5e5b60d3fb2c","title":"6 Essential Procurement Technology Trends","publishedAt":"2020-12-06T17:00:00.000Z","_createdAt":"2020-01-20T07:59:02Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/d40705da36955115b5cc8c268bf0e9887f4f09d2-1000x667.jpg?w=1000&h=667&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/d40705da36955115b5cc8c268bf0e9887f4f09d2-1000x667.jpg?rect=0,1,1000,666&w=320&h=213&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/d40705da36955115b5cc8c268bf0e9887f4f09d2-1000x667.jpg?w=654&h=436&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/d40705da36955115b5cc8c268bf0e9887f4f09d2-1000x667.jpg?w=768&h=512&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/d40705da36955115b5cc8c268bf0e9887f4f09d2-1000x667.jpg?w=1000&h=667&auto=format 1000w","sizes":"(min-width: 1000px) 1000px, 100vw"}},"layout":"constrained","width":1000,"height":667,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"procurement-trends"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"Optimizing your procurement process is essential to organizational success, especially for growing businesses. It's an often-overlooked business process with easy to deploy solutions that drastically increase efficiency. \n\nAnd if you're looking to [cut costs while increasing efficiency](/how-to-cut-costs-while-increasing-efficiency-in-your-business/), then you need to look no further than taking advantage of these 5 essential procurement trends. \n\nFar from a menial task, the procurement process can streamline overall business practices, leading to growth. \n\nAs a result, this can free up vital resources your business needs to outperform the competition. Here are the most important, 6 trending procurement practices.\n\nCheck them out. \n\n## 1. Dynamic Procurement Software \n\nAs more growing companies understand the vital role that procurement plays in the strategic success of their business, they'll quickly see the limitations of existing systems. For example, most young businesses rely on dated methods of procurement such as manual invoicing and [data collection in spreadsheets](/warning-spreadsheets-will-ruin-your-business). \n\n**The future will be different.**\n\nAs customer demands continue to increase and the market continues to shift, growing businesses will need to [transition to procurement software](/what-are-procurement-best-practices) to manage the processes like invoicing, vendor relationships, and inventory. \n\nMore and more organizations are understanding the value of automating menial tasks. They understand that their companies need every edge they can get. And they know that [automation will free up the time](/workflow-integration/) and the resources they need to continue their success.\n\nGrowingly, executives realize the benefits of collapsing their back-office goes beyond costs. Your customers still want to talk to people. \n\nAnd leaders are faced with a choice: hire more staff to handle increasing customer demands OR give their employees more time with software solutions that handle their busy work. \n\n## 2. Procurement as a Strategic Process\n\nOrganizations will increasingly realize that optimizing the procurement process goes beyond cost benefits. It’s a strategic move. \n\nWhile there can be an immediate benefit in securing the lowest-priced supplier, strategic procurement processes are about seeing what's best for the business long-term.\n\nAnd cheaper isn’t always the best long-term option. \n\nThings like reliability, quality, and responsiveness from vendors may come at a premium. But, they'll give companies the ability to move faster and over-deliver on expectations. \n\nThe key is to know where businesses should invest their resources for sustainable growth. For a business to position itself as an industry leader, it will need to leverage suppliers against the market and balance service with cost. That will require insights at a level achievable only with strategic procurement systems in place.\n\nFrom being able to leverage competition between vendors, to see the supply chain on a holistic level, leaders will shift from managing individual processes and transition to seeing how they can lean on procurement to increase success.\n\n## 3. Supply Chain Transparency \n\nThe procurement process has often been siloed and fragmented. This has resulted in unnecessary spending and numerous, costly errors.\n\nImagine this scenario. \n\nSeveral different departments reach out at the same time to purchase items from the same supplier. This causes fragmented orders, delays, and increased costs. What’s worse, a business can lose out on dynamic discounting while suffering from inaccurate budgeting simultaneously.\n\nThis isn't a one-off occurrence. This happens all the time in growing businesses that lack transparency across their procurement process. \n\nIndustries looking for the edge will seek out systems that provide more transparency. Manual entry leads to errors. And spreadsheets that continuously silo information in departments will only stand in the way of progress. \n\nBusinesses will aim to create procurement systems that provide end-to-end transparency, reducing these costly errors, and minimizing maverick spending. \n\nBut perhaps most importantly, they will push to move away from processes that overly rely on spreadsheets, manual data entry, and tedious approval processes that create bottlenecks and slow down the system. \n\n\"robot\n\n## 4. Use of Artificial Intelligence\n\nImagine new tariffs increase the cost of certain materials. How will it affect the performance of your supplier? How can you be certain that you’re receiving the best price and service for the goods your business needs to run efficiently? \n\nThe need to analyze risk in real-time is essential to procurement becoming a more strategic department in any growing organization. But the sheer amount of data and the rapidly shifting nature of the market make this an impossible task for people to manage successfully on their own. That's why more organizations will lean on AI systems. \n\nProcurement that uses AI will be able to monitor news events along with market insight and other indicators to create detailed supplier reports in real-time. These reports will allow businesses to rate current suppliers against competitors and ensure they're leveraging the right vendor at the right time to reduce risk to the organization.\n\nThis increased transparency across suppliers will also help foster greater business relationships in the long-run. Suppliers will realize there's greater transparency in the market and they'll adapt to meet your expectations. As a result, both your organization and your customers will benefit.\n\n## 5. Prioritizing Mobile Procurement\n\nBeing able to simply snap a picture of invoices and upload them into your ERP isn’t a luxury anymore, it’s a necessity. In fact, mobility provides an extra layer of optimization that is crucial for reducing costs and optimizing business practices. \n\nNowadays, there is an endless list of applications you can access from mobile devices. Businesses need to remain agile all the way down to the micro-level. Mobility in procurement systems is essential to make that happen.\n\nLeaders will empower their teams to effortlessly manage all aspects of the procurement process (budgeting, invoicing, approvals, etc.) on the run. \n\nWhether they're at remote depots, moving between departments, or simply out on the floor, they'll be able to work on the go with agile applications that help them do their jobs. \n\nLook to see an increase in the use of mobile devices in the procurement process.\n\n\"working\"\n\n## 6. Using Low Code to Build Custom Procurement Systems\n\nCustom procurement systems built from scratch with expensive price tags and agonizing time-to-deployment will no longer be the norm for growing business. Software is becoming increasingly democratized thanks to [low code ](/low-code-guide)and no-code platforms.\n\nThese platforms allow employees to rapidly build automation and integrations with little to no background in coding. These agile procurement solutions will help growing businesses move away from manual processes and streamline workflows.\n\nAs a result, businesses will see a decrease in costs while giving employees more time to focus on continued business success. \n\n## How to Optimize Your Procurement Process Today \n\nThe procurement process is a challenging business system to improve. It is a complex web of systems, workflows, and applications that flow through your business. This can make it hard to figure out the difference between where you can and where you should make improvements. \n\nIf you're looking to streamline your procurement process and scale your business growth, then you need to work with procurement specialists. They'll help you build a roadmap designed to make procurement a more strategic process in your organization. And they'll work with you to deploy custom, affordable solutions.\n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.","shortDescription":"Weak procurement processes are like slow leaks in the haul of a speeding sailboat. While they may not seem troubling at first, they can slow your business down. And in this age of digitization, they can even cost you the race. As competition continues to increase, successful businesses cannot afford to overlook the power workflow","categories":[{"title":"Procurement"}]}},{"node":{"id":"-3e5465ab-cee3-5a8f-b956-8ba15924ecda","title":"8 Easy Steps to Improve Your Accounts Payable Process","publishedAt":"2021-02-04T17:00:00.000Z","_createdAt":"2020-01-16T06:19:06Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/4717c16e26999564b6a2b49c89f38c0234ed8973-1280x853.jpg?w=1280&h=853&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/4717c16e26999564b6a2b49c89f38c0234ed8973-1280x853.jpg?rect=0,1,1280,852&w=320&h=213&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/4717c16e26999564b6a2b49c89f38c0234ed8973-1280x853.jpg?w=654&h=436&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/4717c16e26999564b6a2b49c89f38c0234ed8973-1280x853.jpg?w=768&h=512&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/4717c16e26999564b6a2b49c89f38c0234ed8973-1280x853.jpg?w=1024&h=682&auto=format 1024w,\nhttps://cdn.sanity.io/images/55lcecww/production/4717c16e26999564b6a2b49c89f38c0234ed8973-1280x853.jpg?w=1280&h=853&auto=format 1280w","sizes":"(min-width: 1280px) 1280px, 100vw"}},"layout":"constrained","width":1280,"height":853,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"accounts-payable-process-improvement"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"Looking for a better way to manage your accounts payable process? Every growing business [looking to cut costs while scaling](/how-to-cut-costs-while-increasing-efficiency-in-your-business/) needs to take a look at their accounts payable processes. Without an optimized system for managing your accounts, you’ll end up stalling your success and damaging your bottom line. \n\nLuckily, there are several simple solutions you can easily implement to improve your accounts payable processes. Follow these 8 tips and tricks to ensure your AP department follows best practices. \n\n## Managing Accounts Payable: The Basics\n\nAny guide on improving your accounts payable process would be incomplete without covering budgeting and the importance of cashflow. While basic, it’s still important to emphasize the importance of having a cash reserve to cover your expenses. \n\nWithout one, you may end up taking a loan to cover costs. And that’ll end up costing you a lot more in the long run. \n\nThe best way to keep this from happening is to set up a business savings account. You’ll put money in it every month to create an emergency fund that’ll cover your expenses should you need it. This way, you won’t have to force your business into any corners with shady lending agencies. \n\nYou’ll also want to budget expenses. This will help you better understand how much money you’ll need to cover your bills. A basic step, but still worth mentioning.\n\n**However.**\n\nThis guide is less about what to do outside of your accounts payable department and more about what to do if you’re looking directly to improve the process. \n\n_And so, without further ado..._\n\n## 8 Easy Tips and Tricks to Drastically Improve Your Accounts Payable Process\n\nWhat is the best practice for accounts payable processes? In short, you need a simple, clear way of tracking your accounts in the most efficient way possible. This is how you get there.\n\n### 1. Map Out Your Accounts Payable Process\n\nBefore you can optimize any workflow, [you need to map it out](/process-improvement-tools/). This will help you quickly identify any bottlenecks or inefficiencies. The best way to do this is to simply whiteboard it out. You can even use sticky notes to map out processes.\n\nIt doesn’t need to be high-quality, it just needs to be accurate. \n\nMost importantly, you’ll want to get your team to review your mapped-out accounts payable process. This will help ensure you don’t miss anything. \n\n### 2. Breakdown Unnecessarily Complex Workflows\n\nAs an organization grows, its processes must grow with it. When you first start a company, you do a lot of things inefficiently. Many young businesses [over-rely on spreadsheets](/warning-spreadsheets-will-ruin-your-business/) to fill in the gaps, for example. As a result, they waste a lot of time and resources trying to juggle multiple disparate data sets across numerous systems. \n\n**Yikes.**\n\nIf you want to optimize your accounts payable process, you _need_ to fix that. \n\nStart by looking at the redundancies, bottlenecks, and inefficiencies you identified when you mapped out your accounts payable process. Ask yourself and your team: what would a more streamlined system look like? Does your process look more like an assembly line or a spider web of complexity? \n\nYour goal here is to identify areas that are needlessly complex. Optimizing these steps will be the priority for improving your accounts payable process.\n\n### 3. Stop Using Paper Invoices\nPaper invoices create a massive problem for business owners. There’s the cost of printing off invoices, the time it takes to manually transfer invoices to the correct department for verification and authorization, and the filing and retrieval of paper invoices. \n\nThese costs add up. \n\nCompanies that rely on paper invoices often perform at the bottom end of the spending average to process each invoice. And the difference is HUGE: bottom performers spend on average $12.44 per invoice while top performers only spend around $4.98.\n\nHow can you move away from paper invoices? \n\n\"fire\"\n\nIf you use paper invoices in your business, then you should switch to digital invoices. You should also speak to your vendors and see if it’s possible to move away from paper invoices. (Many vendors offer the option.) \n\nFinally, scan any paper invoices you receive and store them in the same place as your other invoices. This will keep you from losing track of them.\n\n_And that brings us to our next tip..._\n\n### 4. Don't Lose Track of Your Invoices\n\nThis is crucial to cutting costs in your business. For example, we saved one of our clients [over $800,000 in late fees](/case-study/revamped-the-erp-and-crm-in-quick-base/) on invoices through automation. \n\nLosing an invoice can cost businesses huge savings. Rather than receiving an early pay discount, your company can end up paying late fees or interest on invoices. \n\nWorse, you can damage relationships with vendors. This can interrupt service, damage your supply line, and leave you looking for new vendors. \n\nSimply put: You don’t want to lose your invoices. \n\nThe best way to track invoices is to automate the process. Anytime someone on your staff manually processes an invoice, there is a potential for waste. That’s because there are numerous ways that waste can occur during invoice processing. \n\nYou can also set up alerts to automatically remind you to pay invoices. This way, you’ll never miss an invoice payment again.\n\nDuplicate payments, erroneous entries, missed payments, manually processing invoices, and fraud is a few examples of how your company can lose money through inefficient invoice processing.\n\n\"coffee\"\n\n### 5. Reduce the Chance of Data Entry Errors\n\nData entry errors can ruin any hope of streamlining your accounts payable process. And manual entry is the most common reason for data entry errors.\n\nAs a matter of fact, it’s so common that 88% of Excel spreadsheets have errors in them. Small entries can add up, costing businesses time and money when trying to correct them or dealing with the fallout.\n\nIn short, people are the problem. The most human hands you have on a process, the greater risk you have of errors occurring. \n\n### 6. Fix Purchase Issues\n\nOverspending can send ripples through your organization. You’ll burn through your budget and put your cash flow at risk. To avoid that, you need to ensure all purchases are properly authorized. \n\nYour accounts payable process needs to automatically valid orders to approve them. You also need to know that you’re getting what you paid for. That means you need a way of checking the quality and quality of the goods you receive. And if your order doesn’t mean your standards, you need an efficient way to deny approval. \n\nAdditionally, you need a way to authorize purchases to prevent fraud from occurring. Most companies try to avoid this by adding a human-touchpoint in the process. But, this slows things down. Especially for growing businesses. \n\nHaving a manager take the time to manually verify orders prevents them from focusing on other high-level tasks. \n\nIn short, you need an automatic way to verify invoices based on company rules and regulations. Approving those that meet standards. Rejecting those that don’t. And you need complete transparency into the purchasing process to avoid fraud.\n\n### 7. Increase Transparency in Your Accounts Payable Processes\n\nManual processes and stacks paperwork ultimately leads to data siloes. These siloes break up transparency in your business, making it harder to fully analyze company spending. \n\nWithout one clear view of your purchasing process, you’re opening yourself up to risk and inefficiencies. \n\nRetrieving records and order details becomes a time-consuming task. You’ll be unaware of at which stages your orders are. And you’ll struggle to see any true value of the data that you collect from your accounts payable department. \n\nAll in all, it creates a kind of black-box for your accounts payable department that you want to avoid.\n\n\"city\"\n\n### 8. Use Low Code to Streamline Accounts Payable\nThe key to improving your accounts payable department is to automate it. From start to finish. With fewer people involved in the processes, there will be fewer chances for errors and inefficiencies. \n\nThere are three ways to automate your accounts payable:\n- **Off-the-shelf software solutions**: You buy [a premade solution](/the-top-5-procurement-software-for-your-business/) and fit it to your business as best as you can.\n- **Custom software solutions (traditional development)**: You pay for a tailored solution, built from scratch. It’s expensive, but it meets your exact business needs. \n- **Low code software solutions**: You get the speed to market of an off-the-shelf solution and the customization of bespoke software but without the cost or time for development. \n\nIn a nutshell, [low code is a software development platform](/low-code-guide/) that allows users to drag and drop the code necessary to build custom platforms. Rather than start from scratch, you choose prefabricated solutions. This gives you the power to build exactly what you need for your business.\n\nWith low code, you can design the custom integrations and automations you need to streamline your entire accounts payable process. Giving you more transparency and efficiency while freeing up your employees for higher-level tasks and reducing costs.\n\nBest of all, low code [scales with your business](/25-shocking-facts-about-low-code/). Most are SaaS platforms. That means they charge based on usage. You only pay for what you need. And the costs only increase as the demand for services increases. As a result, they’re a very affordable solution. \n\n\"car\"\n\n## The Benefits of Improving Your Accounts Payable Process\n\nWith a streamlined system in place for managing vendors and suppliers, you’ll have clear transparency into your supply line. And this opens you up to a lot of benefits. \n\nMainly, with an optimized accounts payable process, you can leverage existing vendor relationships for better discounts. You can also maintain your existing vendor relationships. That way, you’ll get consistent service you can rely on. \n\nThere are other awesome benefits of automating accounts payable. The time and money you’ll save from automation are astounding. And with no paper invoices, you’ll be doing your part to reduce the carbon footprint of your business.\n\n## How to Fastrack Your Accounts Payable Process Improvement\n\nThe truth is that no business starts off with inefficient processes on purpose. Instead, as a business grows, the old ways of doing things simply don’t (can’t scale.) As a result, many growing businesses struggle as their systems trip them up. Accounts payable included.\n\nWhatever the size of your business, low code platforms provide a quick and [easy way to set up workflows](/workflow-automation-software/) that allow you to streamline practices.\n\nSeamlessly process invoices with precision using a low code platform. Experience transparency like never before as you watch invoice processing times drop from weeks to a handful of days. Reduce waste. Strengthen vendor relationships. Achieve results.\n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.","shortDescription":"Drowning in invoices is a far more common problem than people realize. Businesses need to regularly make purchases to function, and invoices for these purchases can add up. But processing invoices can be a complex, overwhelming task that can get tangled up in other workflows.","categories":[{"title":"Procurement"}]}},{"node":{"id":"-6c29919d-e21e-53d9-88e6-0ae298159bd8","title":"5 Ways to Rapidly Improve Your Restaurant Inventory Management","publishedAt":"2021-02-05T17:00:00.000Z","_createdAt":"2020-01-22T02:54:00Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/cd402c7e4e7a19dc598f4aa0c3aa7092f7bc3698-2200x1238.jpg?w=2200&h=1238&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/cd402c7e4e7a19dc598f4aa0c3aa7092f7bc3698-2200x1238.jpg?w=320&h=180&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/cd402c7e4e7a19dc598f4aa0c3aa7092f7bc3698-2200x1238.jpg?w=654&h=368&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/cd402c7e4e7a19dc598f4aa0c3aa7092f7bc3698-2200x1238.jpg?w=768&h=432&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/cd402c7e4e7a19dc598f4aa0c3aa7092f7bc3698-2200x1238.jpg?w=1024&h=576&auto=format 1024w,\nhttps://cdn.sanity.io/images/55lcecww/production/cd402c7e4e7a19dc598f4aa0c3aa7092f7bc3698-2200x1238.jpg?rect=1,0,2199,1238&w=1366&h=769&auto=format 1366w,\nhttps://cdn.sanity.io/images/55lcecww/production/cd402c7e4e7a19dc598f4aa0c3aa7092f7bc3698-2200x1238.jpg?w=1600&h=900&auto=format 1600w,\nhttps://cdn.sanity.io/images/55lcecww/production/cd402c7e4e7a19dc598f4aa0c3aa7092f7bc3698-2200x1238.jpg?w=1920&h=1080&auto=format 1920w,\nhttps://cdn.sanity.io/images/55lcecww/production/cd402c7e4e7a19dc598f4aa0c3aa7092f7bc3698-2200x1238.jpg?w=2048&h=1152&auto=format 2048w,\nhttps://cdn.sanity.io/images/55lcecww/production/cd402c7e4e7a19dc598f4aa0c3aa7092f7bc3698-2200x1238.jpg?w=2200&h=1238&auto=format 2200w","sizes":"(min-width: 2200px) 2200px, 100vw"}},"layout":"constrained","width":2200,"height":1238,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"restaurant-inventory-management"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,/9j/2wBDAAYEBQYFBAYGBQYHBwYIChAKCgkJChQODwwQFxQYGBcUFhYaHSUfGhsjHBYWICwgIyYnKSopGR8tMC0oMCUoKSj/2wBDAQcHBwoIChMKChMoGhYaKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCj/wAARCAARABQDASIAAhEBAxEB/8QAFwABAQEBAAAAAAAAAAAAAAAAAAUGBP/EACkQAAEEAAQEBgMAAAAAAAAAAAIAAQMEBQYRIRITM0EiMTJhcsE1cYH/xAAYAQADAQEAAAAAAAAAAAAAAAACAwYBBP/EACIRAAIBAgUFAAAAAAAAAAAAAAABAwJCExQhMTIEESJxwf/aAAwDAQACEQMRAD8Az2F4aI0CkBm5zt4dW1ZleqZTlp0xnsYgdyOX1McfC8f6UfLYzXsLeTmDEDC7tvv/ABaHLh2LtR4pLoE8QcW3kW/f3SstM7dzpzfTrv5bGUxDBwC0TCw6e6LrxixYjvGLwsWndt9UQYda0aNxY6tVUjkyh+KD4/SqZT6dv4/aIqhWEZbJ7+i11nRESZOTDh4I/9k="}}}}},"body":"Restaurant inventory management is an integral part of restaurant business management. Operating a restaurant is not only about designing menus, decorating the area, and hiring qualified chefs, waiters, and bar staff. Restaurant owners need to win new customers, create repeat clients, and develop their customer base in conditions of growing competition.\n\nHere's how you can make that happen. \n\n## What Is Restaurant Inventory Management?\n\nRestaurant inventory management is the process of tracking products and raw materials moving into your restaurant along with the resources required to serve them to your customers. It also needs to account for overages and waste. Finally, it needs to take into account the human element in the inventory process.\n\n**Effective inventory management helps with the following:**\n- Resources tracking\n- Stock control and organizing\n- Inventory monitoring\n- Supplies analysis\n- Better forecasting\n- Sales and profit improvement\n- Waste and loss reporting\n- Labor costs\n\nThe complexity of restaurant inventory management depends on the size of the business. As the restaurant grows, inventory management becomes increasingly challenging. And managing your inventory on a day-to-day basis becomes increasingly vital to [the continued success of your establishment](/process-consulting/).\n\n\"restaurant\"\n\n\nAs a restaurant owner, you need to optimize this your inventory management. Doing so will save you time and money. It'll ensure your customers receive the freshest products. And it'll keep your staff happy by providing them with what they need to keep your customers coming back.\n\n## 5 Ways to Rapidly Improve Your Restaurant Inventory Management\n\nRestaurant businesses need to record and track all the raw materials and products in their stories. This data needs to be accurate to protect the health of your customers and the reputation of your business. That means you need more transparency and up-to-date records of your inventory.\n\n### 1. Deploy an Inventory Forecasting System\n\nIt's impossible to count all the materials that you need for your business. As a result, restaurant owners tend to purchase inventory management software to control costs and optimize restaurant operations. A key component of that software is inventory forecasting.\n\nInventory forecasting makes it possible to plan out the use of your resources. Forecasting your inventory will help decrease your stocks to the minimum, minimizing waste and increasing revenues. \n\n\"drinks\"\n\nIn the restaurant business, there are various factors that influence the process of resource planning. For example, the holidays or events which take place in the city might lead to a higher volume. There are also spikes in business to consider: morning rush, dinner and lunchtimes, happy hours, and more.\n\nUnpredictable factors can influence restaurant volumes as well. For example, unexpected weather conditions (like rain) may lead to an increase or decrease in the number of customers.\n\nEither way, you need to forecast your inventory so that you have enough resources and staff members to meet the needs of your guests.\n\nExperts also recommend tracking the restaurant sales numbers based on similar time periods in the past. \n\nIn short, every successful restaurant business needs to have an [automated system](/workflow-automation-software/) in place for inventory management in place to forecast the resources required.\n\n### 2. Focus on Recipe Costing\n\nRecipe costing is essential to effective restaurant operations. And restaurant inventory management supports this by helping plan the proper amount of ingredients needed for the menus, leading to decreased costs. \n\nIt also provides restaurant owners with an overview of which menu items attract more customers. And you can test new cuisines and get actual data on whether or not they were a success. \n\nRecipe costing also helps you put the correct price tag to each dish. By knowing the exact prices for the materials, ingredients, and margins, you'll know what you'll need to charge for each item to stay profitable. \n\n\"blackboard\"\n\nTo set the competitive selling price for a menu, you'll need to estimate the total resources needed to create the item. This includes the financial costs, human element, inventory costs, and other costs.\n\nAnd with each menu item properly priced, you'll cut down on waste, better manage staff hours, and communicate the real value of your inventory to your staff. \n\nIn short, you'll maximize the profits of the restaurant. \n\nPlus, the right restaurant inventory management software empowers you as a restaurant owner. With the data it provides, you can monitor and update prices regularly, change ingredients in recipes, and track the sales of your menus more effectively.\n\n### 3. Deploy a Restaurant Inventory Management System\n\nMost small restaurants start off manually managing their inventory. This is a painstaking, complicated, and time-consuming task that can result in costly human errors.\n\nRestaurant inventory management software can assist you with many operational functions. You can manage basic operations, such as inventory management, billing, ordering, and queue management. With one encompassing system for inventory management, you'll [increase productivity and efficiency across your business](/how-to-cut-costs-while-increasing-efficiency-in-your-business/).\n\nImplementation of the restaurant inventory management system helps connect point-of-sale systems, kitchen operations, back-of-house applications. It also provides accurate purchasing, better inventory forecasting, and more effective staff involvement.\n\nThe restaurant inventory management system should be easy to use and must be automated. Automation reduces the risk of human error while making the process more efficient. And an easy-to-use system means that staff will easily adopt it.\n\n### 4. Set up System Integrations\n\nEvery business uses multiple applications to support its customer needs. Restaurants are no different. But when you use different systems, you run the risk of disparate data (data that doesn't translate between those systems). As a result, you need a way to move that data between those platforms. \n\nMost often, businesses use spreadsheets ([this is problematic](/warning-spreadsheets-will-ruin-your-business/)) to make that happen. It's a slow, clunky process that's prone to errors. And with margins in restaurants as low as they are, you need to reduce any chance of errors while cutting costs. \n\n**That's where integration comes in.**\n\n[By Integrating your systems](/everything-you-need-to-know-about-integrations/), you can automate processes in your restaurant business. This will allow you to synchronize the data from various software and apps, giving you a clear picture of your business. \n\n[The benefits of automating](/automating-workflows/#:~:text=Workflow%20automation%20reduces%20the%20problems,objectives%20while%20reducing%20costly%20mistakes.) your systems are endless. You get real-time reporting, more accurate data, and a better understanding of your customer needs. You'll also reduce labor costs as many manual processes are eliminated by automation. \n\nIn short, you'll create a far more efficient restaurant.\n\n\"outside\"\n\n### 5. Guide Your Team with Data\nWith all these connected systems in place, you'll gain accurate insights into your restaurant. And this will allow you and your team to make more informed decisions. As a result of the data collected, you'll better understand what materials and support you need and when you'll need them.\n\nTo get the most out of your restaurant inventory management, you need to use that data to make better decisions. Those results should fuel future successes, continuing to improve your business. \n\n### The Challenges of Restaurant Inventory Management\n\nFrom the beginning of the operation, restaurant businesses are always looking for the best ways to become more competitive in the market, decrease costs, reduce waste, optimize service and improve revenues. And while restaurant inventory management can greatly assist with those goals, it's not without challenges.\n\n1. **Adoption**: There is always pushback when onboarding systems. Perceived difficulty from the learning curve can deter people from onboarding.\n2. **Risk**: Not knowing which system is right for your business can lead many owners to continue tracking inventory manually. \n3. **Cost**: Because you'll need to automate a lot of these processes, you'll need to purchase or build new software. That comes at a cost. \n4. **Pushback**: While the data can paint a clear picture of which menu items are more popular, it can create difficulties with staff who feel differently.\n5. **Change**: With a new system comes new procedures. And management will need to draft and test new ways of doing business. \n\n## Restaurant Inventory Management Best Practices\n\nTo effectively run your restaurant inventory, you need [to know best practices](/what-are-procurement-best-practices/). After all, systems alone aren't enough to yield success. You need action. These are some best practices you need to follow. \n\n- **Leverage Mobile**: Your inventory system needs to be agile. If your employees cannot take it with them onto the floor, it'll end up slowing them down drastically. \n- **Integrate POS**: Do not keep your POS and inventory management separate. Your POS system tracks valuable data that is crucial to effective inventory management. Connect these systems and leverage that data.\n- **Prioritize Ease of Use**: Restaurants are chaotic, busy places. Any effective system needs to be fast and easy to use. \n- **Incorporate Shelf-Life-Management**: Raw materials have a short shelf-life. You need to know what needs to be used first to reduce any potential for waste.\n- **Remember Seasonal Items**: Your inventory system needs to be flexible to account for seasonal items, freshness, and specials. \n- **Track Waste**: Waste can make or break a restaurant. You need a system that tracks it, translates it into a financial relevance, helps you find ways to reduce it.\n\n## FIFO and Restaurant Inventory Management\n\nDealing with non-perishable ingredients, you will need to make sure you operate on the first-in, first-out (FIFO) basis. This means that the oldest inventory ingredients need to be sold or used first. \n\nYou'll need to monitor the stock at the beginning of each day and at the end of the day. If you have multiple locations, stock monitoring becomes more complicated and needs careful attention.\n\nEffective restaurant inventory management will show you how much time the remaining stock will last. It'll also help you to monitor raw material usage, forecast, and create future orders and supplies. \n\nAnalyzing the demand and the inventory trends is extremely important for any restaurant business. You need to stay informed about the usage of raw materials and the ingredients based on consumption.\n\nIt's important to remember that customers’ preferences change from season to season. As a result, it's hard to have an exact forecast of your future inventory. \n\n\"barrel\"\n\nHowever, an accurate list of the consumed menus will help you to monitor the usage of the ingredients during the day, week, and month. And historical data will help you create better models for predicting future outcomes. \n\nIn short, sooner is better than later when it comes to automating and tracking your restaurant inventory management.\n\n## Drastically Improve Your Restaurant Inventory Management\n\nIf you want to optimize your inventory management so you can reduce costs and dominate the competition, you need to build a system designed to optimize your resources. Depending on the size and demands of your business, that can become an increasingly complicated task. \n\nA shortcut to success is to work with professionals who know how to streamline inventory management and procurement. \n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.","shortDescription":"Restaurant inventory management is an integral part of restaurant business management. Operating a restaurant is not only about designing menus, decorating the…","categories":[{"title":"Procurement"}]}},{"node":{"id":"-1c58740a-79e5-5be7-b630-cc0468a1ca8f","title":"What Is Strategic Procurement? (And How Do You Get There?)","publishedAt":"2021-02-05T17:00:00.000Z","_createdAt":"2020-01-20T09:00:31Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/18bdaf49c2f0f9d0fdb2e036529c5ed3b418e506-1280x720.jpg?w=1280&h=720&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/18bdaf49c2f0f9d0fdb2e036529c5ed3b418e506-1280x720.jpg?w=320&h=180&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/18bdaf49c2f0f9d0fdb2e036529c5ed3b418e506-1280x720.jpg?w=654&h=368&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/18bdaf49c2f0f9d0fdb2e036529c5ed3b418e506-1280x720.jpg?w=768&h=432&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/18bdaf49c2f0f9d0fdb2e036529c5ed3b418e506-1280x720.jpg?w=1024&h=576&auto=format 1024w,\nhttps://cdn.sanity.io/images/55lcecww/production/18bdaf49c2f0f9d0fdb2e036529c5ed3b418e506-1280x720.jpg?w=1280&h=720&auto=format 1280w","sizes":"(min-width: 1280px) 1280px, 100vw"}},"layout":"constrained","width":1280,"height":720,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"what-is-strategic-procurement"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"## Rethink Sourcing with Strategic Procurement\nHow does your business view its current procurement process? To get more out of your sourcing, you need to rethink how your company acquires goods and services. This walkthrough will help you understand what strategic procurement is, why it's necessary, and how to implement it in your business. \n\n## What Is Procurement?\nThe procurement process is how an organization acquires goods and services from third-party vendors. Most businesses place a bid for the good or service they need. Once the vendor agrees on it, they supply the business with that product or service. \n\nThe complexity of that process (how many workflows and tasks are involved) depends on several factors. The size of the business, the good or service requested, and the workflows that govern procurement. \n\n### A Brief Overview of the Procurement Process\nThis is what the procurement process looks like in most businesses. \n\n1. **Evaluation:** A department discovers a need and evaluates potential goods/services that will fulfill that need.\n2. **Requisition:** An employee completes paperwork for goods/services required and files for approval.\n3. **Review:** Department head/executive reviews requisition and either approves or denies the request. \n4. **Purchase Order:** Unless the purchase is a unique or rare instance that can be handled with a spot buy, a PO will be created.\n5. **PO Approval:** PO goes to the appropriate authority for approval. Once approved, it is sent to vendors. \n6. **Vendor Approval:** Vendors will review PO and either accept, reject, or [negotiate the order](https://quandarycg.com/procurement-negotiation-how-to-make-it-a-win-win/). \n7. **Evaluation:** Buyer inspects goods/services. The buyer’s performance is also evaluated for future interactions. Details of the quality of the goods, services, and performance get recorded to create a record and base for future transactions/negotiations. \n8. **Invoice Approval:** Once the goods/services are evaluated and accepted, an invoice gets dispatched to the finance department.\n9. **Payment:** The finance department pays the invoice provided it meets terms and conditions. \n\n## What Is Strategic Procurement? \nDid you know that on average, businesses waste 6,500 hours in extra labor annually on inefficient procurement processes? \n\nStrategic procurement happens when a business leverages its procurement process to gain deeper insights into the market, giving them a competitive edge. More so, it's about going beyond [tactical procurement](https://quandarycg.com/how-and-when-to-use-tactical-sourcing-to-grow-your-business/) to design a system for sourcing that benefits your business's long-term objectives. You also need to understand that procurement is NOT a one-off workflow that your business simply sets and forgets. And finally, you should look for ways to make your procurement process leaner. \n\n## How Is Strategic Procurement Different?\n\nThe biggest difference between traditional procurement and strategic procurement is how the company views the process. Rather than looking at procurement as a single department that needs to manage itself, strategic procurement flips the script. In short, it involves contributions from the whole organization.\n\nStrategy procurement involves rewriting the workflows and processes in place so that a company has a better understanding of market demands and fluctuations. It also means knowing when to buy and when not to buy. And finally, it involves having a strategy behind every purchase.\n\n_This seems easy at first..._\n\n![](https://res.cloudinary.com/quandary-consulting-group/image/upload/v1632905603/Procurement_Process_oeafbe.jpg)\n\nBut it isn’t as straightforward as you might think. No business wants to be inefficient. They end up there because of the pressure to meet expectations against the limitations of their own systems. \n\nThe more components in the system, the greater the chance for something to go wrong. And as any company grows in size, the need for streamlined procurement processes grows with it. Numerous employees, various departments, and a wide range of requirements exponentially increase the possibility of failure.\n\nIn short, it creates a cycle of inefficiency. Inefficient systems create inefficient results. To overcome those results, growing businesses push more resources into their existing systems. In turn, that brings about more inefficient results. \n\nThe best way to break out of that cycle is to change the way your organization thinks about procurement and optimize the process.\n\n## 9 Steps to Creating a Strategic Procurement Process\n\n\"concept\"\n\n### 1. Map Out Your Existing Systems\nThe first step in [any process improvement](/process-improvement-tools/) is to map out your existing systems. Without this step, you can never be sure where your bottlenecks are. \n\nThe easiest way to do this is to whiteboard your procurement process. Note all the workflows and tasks that govern sourcing in your organization. You'll want to be sure to highlight the steps, slowdowns, and touchpoints along the way. The more detailed you are here, the better. \n\n### 2. Identify Inefficiencies and Breakpoints\nWith your processes clearly mapped out, you can easily see where your procurement weak points are. These can be breakdowns in systems, workflows, communication, or relationships. Each problem will need a specific solution. But, you'll quickly find that the weaknesses in your procurement process rest in your [procurement software](/the-top-5-procurement-software-for-your-business/) .\n\n### 3. Evaluate Your Procurement Software\nMany growing businesses rely on prepackaged procurement solutions bundled in ERPs. These are often cookie-cutter, one-size-fits-all solutions that won't be tailor-made to fit your specific business problems. \n\nAs a team, you'll need to evaluate whether or not your software is holding you back. If so, you may need to speak with a [procurement automation specialist](https://quandarycg.com/procurement-automation-services/) to see what your options are for improving your software. \n\n### 4. Analyze Your Needs and Create a Strategy\nYou'll need to perform a needs, spend, and supply analysis before creating a procurement strategy. This involves a better understanding of what your business needs, the true market value of these services, and which vendors can meet your demands at a price that's affordable for your organization. \n\n- **Analyzing Business Needs:** You need to know where your business spend goes. Discuss spending data with your team and challenge the norms. This will help you find out what's truly needed. A Kraljic Matrix is an effective way to find out map your specific needs.\n\n- **Analyzing Spend:** You'll need to pull data from any available sources to help you map out your current procurement spend. This will serve as a foundation for identifying waste and [the potential for cost reduction](/how-to-cut-costs-while-increasing-efficiency-in-your-business/).\n\n- **Analyzing Supply:** What does [your vendor market](https://quandarycg.com/vendor-data-management/) look like? Are you getting the best deal from the best supplier? Can you leverage your existing relationship to better position your organization? Until you survey your market, you'll end up settling. \n\n\"graph\"\n\n### 5. How to Establish Strategy Goals for Procurement\nYour main focus for strategic procurement will be [identifying cost savings opportunities](https://quandarycg.com/how-to-identify-and-significantly-reduce-procurement-costs/). However, there's more to optimizing your workflows than saving money. With the right plan in place, you can see an industry-wide lift. \n\n**Here are some additional goals you should set**: \n- Reducing your supplier base\n- Partnering with vendors that align with your business goals\n- Forming lasting relationships with your vendors\n- Delivering on increasing customer demands\n- Improving the quality of your goods and services\n- Reducing supply chain risks\n- [Automating your supply chain](https://quandarycg.com/supply-chain-automation/) processes\n- Positioning yourself as a leader in your industry\n\n### 6. Develop a Procurement Strategy\nWith an understanding of your needs, the market, and your goals, you can build your procurement strategy. You'll want to define the tactics and software solutions your business will need to reach your goals. \n\nIt's best to start with the goals you want, and backward engineer the process. Be robust. And realize that there may be a \"good, better, best,\" version of your procurement process that you'll have to work toward. \n\nThat's okay. Every business has limitations. And often, the best version of a workflow is built through a series of improvements. \n\n### 7. Establish Policies\nYou'll want to be certain that your business works together to bring your strategic procurement process to life. That requires policies and procedures. With a standard form of guidelines, your employees will have direction and your managers will have the authority to [enforce best practices](/what-are-procurement-best-practices/). \n\nUltimately, this ensures your staff adopts this new way of thinking and gives you the greatest chance of seeing a return from your process improvements. \n\n### 8. Deploy Procurement Software Solutions\nWhere your business needs to onboard procurement software or you need a collection of [custom apps](/quandary-build/) and [integrations](/quandary-connect/) to streamline your workflows, you'll need to enhance your procurement with the right solutions. \n\nBusinesses on a budget (or looking to further cut costs) should [check out low code](/25-shocking-facts-about-low-code/) to build their software solutions. We'll cover this in detail later. \n\n\"teaching\"\n\n### 9. Test. Refine. Improve.\nAs your business grows, your needs will change. And you'll want both the systems and the mindset that can keep pace. After you deploy your new strategic procurement process, you'll want to test how it performs. \n\nMonitor improvements. Find slowdowns. Break apart bottlenecks. This ensures your procurement workflows are always optimized.\n\nStrategic procurement is never a one-and-done approach. Your market is always changing. And you'll need to be ready to change with it. Luckily, a strategic approach to your sourcing makes that much, much easier.\n\n## 6 Obstacles to Strategic Procurement\n\nDespite the clear advantages of leveraging procurement processes strategically, businesses still struggle to make it happen. As a result, they lose any potential benefits an optimized strategy and system for sourcing could bring to their business. \n\nThese are the reasons why that happens.\n\n### 1. Apathy \nHistorically speaking, most business executives tend to think of procurement simply as a process that happens in their business. They need goods and services, and their business has to work with vendors to make that happen. As a result, most people in leadership roles shrug off the notion that anything can be done to improve the process. \n\n### 2. Fear of Risk\nRebuilding any system or workflow in any organization is a considerable lift. From mapping out workflows to building the infrastructure to deploying and training staff on new processes, revamping your procurement process can be challenging. _(Not to mention the upfront costs.)_\n\nAs a result, leadership focuses their attention elsewhere. They see a simple (and cheaper) solution to scaling their business: hiring more people to manage the additional work. Except, all this does is create a larger, more inefficient system.\n\n\"traffic\"\n\n### 3. No Top-Down Initiative\nMake no mistake, employees managing procurement see waste. They know about maverick spend, missed invoices, and poor quality goods and services that have been purchased at a premium.\n\nHowever, without a top-down directive, there's no push to improve the system. \n\n### 4. Failure to Adopt\nEven when a business deployed digital systems to improve the process, they don't always catch it. Overhauling your procurement with an off-the-shelf solution may create more problems than it solves. If the UX is too difficult, annoying, or inefficient, your staff will push back on adopting the tech. \n\nWithout universal acceptance, the system (and any potential benefit) will fail. And your business won't be any closer to strategic procurement despite the investment.\n\n### 5. A Lack of Unifying Systems and Processes\nDepending on the size of the company, different departments tend to manage procurement differently. With multiple systems in one organization, communication is challenging. \n\nAnd data becomes hard to collect and implement in a way that paints a uniform image of the company. \n\nAs a result, processes rely more on manual labor, raising costs from both the time required and mistakes made by the human component. \n\n### 6. Not Enough Clean Data or Metrics\nIf you rely on a lot of manual processes or if you have multiple siloed systems in your procurement process, you likely don't have an accurate view of sourcing in your organization.\n\nSuccessfully implementing a strategic procurement process requires baseline data. This data helps you set goals, like [invoicing KPIs](https://quandarycg.com/key-invoice-metrics-that-matter/) or [vendor management KPIs](https://quandarycg.com/critical-vendor-management-kpis/), that you can target with process improvement. Without clear data, you can't evaluate results, see progress, or understand which areas need to be optimized. \n\n## How Software Facilitates Strategic Procurement Process\nDespite all these obstacles, there is a clear benefit in transforming procurement into a strategic process. While most businesses are hesitant to make the initial investment, they fail to see that their procurement processes are slowly eating away at their bottom lines. \n\nSo, how much do inefficient procurement processes cost a business annually? \n\nHackett reported that organizations can see up to 30% reduction in costs with strategic procurement. \n\nThat's MASSIVE.\n\n\"money\"\n\nBut getting there isn't easy.\n\nIn short, you need the right systems in place to get the insights you need to rethink your procurement process strategically. And to make that happen, you need the right software. \n\nWith so many steps in the procurement process, it’s not surprising that software exists to help facilitate the process. Typically speaking, many companies use the Procurement software incorporated into their ERP. \n\nThis means they’ll have some way of monitoring the order process, POs, invoices, inventory, approvals, payments, etc. However, this is not without its own problems.\nrestaurant inventory management.\n\nProcurement processes vary greatly from business to business. \n\nSome only need the bare minimum while other companies have so many moving parts and oversight that they may need help managing these processes. And niche companies with custom processes will need something tailored specifically for their business. \n\nTraditional ERP platforms provide a cookie-cutter approach to procurement. Businesses with limited resources opt to best utilize that option for their ERP model. And where it falls short, they rely on manual processes like email and [spreadsheets to fill in the gaps](/warning-spreadsheets-will-ruin-your-business/). And this can create problems. \n\n## Low-Code For Procurement\nMost growing businesses don't have the luxury of an expansive IT budget to build out the custom solutions they need. That's why many organizations settle for cookie-cutter software that does a \"somewhat\" better job. They map out their workflows, set goals, and put together a strategy only to realize that their technology limits them. \n\nRather than settle for less, organizations need to [turn to low-code](/low-code-guide/) as the solution to their strategic procurement needs. \n\nLow-code platforms are drag-and-drop interfaces that allow users to quickly build the software solutions they need. It's faster and cheaper than traditional software builds. And costs scale with use. That means you'll only pay for what you use. \n\nWith low-code, you can quickly integrate your workflows, build apps with the features you need, and custom design a procurement process that fits your goals. \n\n## How to Fast Track Your Strategic Procurement Process\n\nEven with low-code platforms, you need to make sure your procurement process meets certain criteria. This way, your business gets the most out of it. \n\nIt should be mobile, flexible, easy to adapt, and agile. And to ensure the solution you choose meets universal adoption across your company, it requires a pleasant UX. \n\n**There’s a lot at stake here.**\n\nSo, how do you rapidly develop, test, and deploy a custom procurement solution for your business? By working with tech consultants with a history of helping businesses redefine their workflows and processes. \n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.\n\n","shortDescription":"How Any Size Business Should Approach Procurement The more components in the system, the greater the chance for something to go wrong. And as any company grows in size, the need for streamlined procure to payment processes grows with it. Numerous employees, various departments, and a wide range of requirements exponentially increase the …","categories":[{"title":"Procurement"}]}},{"node":{"id":"-7abe36e7-c0ed-527c-af8d-155bbae1c9af","title":"10 Procurement Risks (And How You Avoid Them)","publishedAt":"2021-07-21T15:00:00.000Z","_createdAt":"2021-06-27T21:18:15Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/fbaf210aa46fe04d90c9741945eb6ed1861f86f6-1000x667.jpg?w=1000&h=667&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/fbaf210aa46fe04d90c9741945eb6ed1861f86f6-1000x667.jpg?rect=0,1,1000,666&w=320&h=213&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/fbaf210aa46fe04d90c9741945eb6ed1861f86f6-1000x667.jpg?w=654&h=436&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/fbaf210aa46fe04d90c9741945eb6ed1861f86f6-1000x667.jpg?w=768&h=512&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/fbaf210aa46fe04d90c9741945eb6ed1861f86f6-1000x667.jpg?w=1000&h=667&auto=format 1000w","sizes":"(min-width: 1000px) 1000px, 100vw"}},"layout":"constrained","width":1000,"height":667,"placeholder":{"fallback":"data:image/jpeg;base64,/9j/2wBDAAYEBQYFBAYGBQYHBwYIChAKCgkJChQODwwQFxQYGBcUFhYaHSUfGhsjHBYWICwgIyYnKSopGR8tMC0oMCUoKSj/2wBDAQcHBwoIChMKChMoGhYaKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCj/wAARCAANABQDASIAAhEBAxEB/8QAGAAAAwEBAAAAAAAAAAAAAAAAAAQFBgf/xAAkEAABAwMDBAMAAAAAAAAAAAACAQMEAAURBxITBiExMmKBsf/EABYBAQEBAAAAAAAAAAAAAAAAAAIBA//EABkRAQEBAAMAAAAAAAAAAAAAAAEAEQITIf/aAAwDAQACEQMRAD8Ap6c2y+Jptc7szcmS521kISopF2T9rioTZsoZBOvSOSQWX8D7Va6X6yvFt0+SHGkKMcnOFR+K+aRnsPNWd2exKMCE9m3CLn7rVeQYS69dbGTA45BjtNEz2ymFopSXOkPvKbh5LxmihrXy/9k="}}}},"slug":{"current":"procurement-risks-and-how-to-navigate-them"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"There are risks behind every purchase a business makes. They cannot be avoided. But, they can be managed. If you want to keep your supply chain intact and your business operational no matter what the world throws your way, you need to identify these 10 procurement risks and know how to navigate them successfully. \n\n## What Is Effective Risk Management\nProcurement risk management is the process of identifying both internal and external risks to your supply chain. Effective risk management demands eliminating situations that put your organization at unnecessary, increased risk. It also involves finding solutions to mitigate both internal and external and external risks. \n\nEffective risk management also requires risk analysis. In short, you need to map out potential risks, the likelihood of their occurrence, and whether or not you can effectively avoid those risks without disturbance to your supply chain. \n\nRisk management is not a one-off event, either. Instead, your organization should conduct regular risk assessments to ensure you’re prepared for any disruptions. And you’ll need to identify possible courses of action. \n\n**These include:**\n- Ignoring risks that pose no real threat\n- Reducing the likelihood of a risk occurring\n- Removing the possibility of a risk occurring\n- Managing risk potential with prepared solutions\n\nYour procurement risk management process should also delegate which team members are responsible for handling certain types of risks. That way they’re ready for an organized, quick response.\n\n**The TL;DR of Procurement Risk Management:** Identity, Analyze, Mitigate, Plan, and Monitor potential risks to your supply chain. This gives you the best chance to remain operational when something goes wrong. \n\n## What Risks Face Your Supply Chain?\nNow that you know how to prepare for risks to your procurement process, you need to identify how risk enters your organization, what types of risks you face, and how to mitigate them. \n\n### Where Do Supply Chain Risks Come From?\nThere are **two types of risks** to your supply chain. Internal and external risks. Each type requires a different approach.\n\n- **Internal risks** come from how your business operates, your employees, project demands, and your procurement processes. \n- **External risks** enter through your supply chain in the form of global events, political events, vendor relationships, and outside actors.\n\n## 10 Supply Chain Risks and Solutions\nYou can mitigate internal and external risk by the types of risk management practices you have in place. However, you can never remove risk completely. You can only have the best procurement practices in place to help prevent them from happening.\n\nHere are 10 major risks to your supply chain and how to avoid or reduce them.\n\n![](https://res.cloudinary.com/quandary-consulting-group/image/upload/v1630248802/10_Procurement_Risks_yw6vwz.jpg)\n \n### 1. Price Instability\nPrices can fluctuate over time. Despite what your contract stipulates, some vendors need to increase costs due to certain factors. Other times, unexpected expenses occur.\n\n**The Solution:** make sure you have the budget to cover any unexpected expenses. Don’t accept price increases without hesitation. And stand ready to negotiate any increased prices with your vendor directly.\n\n### 2. Supply Chain Disruptions\nSupply chain disruptions come in various forms. Most recently, we’ve seen how a pandemic can impact supply lines. Political unrest, economical changes, natural disasters, new technologies, and even [a boat getting stuck in a canal](https://www.bbc.com/news/world-middle-east-56625680) can disrupt your supply chain.\n\n**The Solution:** Assess your suppliers to understand which ones are most at risk for supply chain disruption. Diversify your suppliers and have secondary suppliers on standby.\n\n\"puzzle\"\n\n### 3. Complex Projects\nThe more complicated a project is, the higher chance there is that something could go wrong. Complex projects have many unknowns, no matter how well they’re planned out. \n\nEach stage in the project also relies on previous stages and influences. As a result, minor issues can cascade into complex problems that drive a project to a sudden stop.\n\n**The Solution:** Clear communication and evaluation of the project along with its procurement demands will help keep everyone on the same page and identify potential issues faster.\n\n### 4. Fraud\nCorruption is not uncommon in business, least of all procurement. From bribes to fake invoices to embezzlement, there are plenty of places in the procurement process where bad actors can take advantage of blind spots in procurement processes and steal from a business. \n\nWhen this happens, it puts the whole organization at risk.\n\n**The Solution:** Improve procurement transparency. Moving away from manual processes to automated procurement processes means more accountability and transparency in purchasing.\n\n### 5. Changing Work Environments\nMore organizations work remotely, but with more remote work comes more challenges. Collaboration on projects and with vendors can become difficult. Overlooked processes, ignored requirements, and missed deadlines can easily happen without being able to verify or follow up in a face-to-face environment. \n\n**The Solution:** Choose a single platform for communication and establish procedures for sharing progress, meeting deadlines, and discussing any supply chain issues.\n\n### 6. Poor Supplier Performance\nYour supplier is a vital business partner that should work with you to increase your success. Suppliers should deliver on expectations, communicate clearly, and collaborate with your team. When suppliers underperform, it puts unnecessary strain on your business to meet customer expectations.\n\n**The Solution:** Work with your suppliers and track performance. Using a vendor management system, you can rate your suppliers and compare their performance over time.\n\n### 7. Unethical Sourcing\nCustomers expect ethical and sustainable business practices. And even though your organization may go out of its way to work with partners that match your business values, it’s possible that the vendors they work with don’t. Ultimately, the onus falls on your business to ensure your vendors meet your sustainability and ethical goals. \n\n**The Solution:** Vendor management systems allow you to store all relevant data on vendors and compare them to other competitors. This can help give you better insights into your suppliers.\n\n\"land\"\n\n### 8. Overspending\nOverspending can put your business at peril. Without an adequate budget, you could face additional fees, damaged vendor relationships, or a complete shutdown of your procurement process. \n\nIt can lead to unneeded products occupying expensive warehouse space. Worst of all, it can force you to take out emergency loans to cover basic expenses (like payroll).\n\n**The Solution:** Leverage [e-procurement solutions](/the-top-5-procurement-software-for-your-business/) to automate invoicing and purchase orders, giving you greater transparency into your budget and spend in real-time.\n\n### 9. Inaccurate Supply Chain Forecasts\nMiscalculating the supply chain forecast can leave you paying more for goods and services (or not being able to acquire either when you need them). Not only do you miss out on the best pricing, but you may also face other costs such as warehouse storage and rushed delivery fees.\n\n**The Solution:** Use supply chain management software to collect the data needed to provide accurate forecasting, so your business can get secure delivery at the best market prices.\n\n### 10. Manual Procurement Process\nOrganizations that still rely on manual procurement processes face unnecessary risk. Most of the issues discussed so far come from a lack of transparency in the procurement process. Manual procurement processing makes it impossible to get that transparency.\n\nManual data entry opens your organization up to costly data entry errors. A lack of real-time reporting makes it easy to miss the signs of an approaching catastrophe. And data silos create multiple (potentially inaccurate) pictures of a project’s progress. \n\nAll of these events expose your business to unnecessary risk and make it harder for your procurement team to develop potential solutions should something happen. \n\n**The Solution:** Automate your procurement process with e-procurement platforms. These expansive, integrated systems provide the real-time reporting and data tracking you need to avoid many of the potential risks your supply chain faces.\n\n## The Biggest Procurement Risk Mitigation Challenge \nWithout [better systems and workflows](/our-approach/), you end up scrambling for time to focus on the bigger issues facing your organization’s procurement process. While you can create better procurement plans and improve procurement management internally, there are limits to what you can accomplish in-house. \n\nBuilding a procurement system that can easily mitigate risk requires the right tools and expertise. Sadly, most internal teams have their hands busy running their business.\n\n**Fortunately, there’s a better solution:** hire procurement specialists to create a risk-resistant procurement process for your growing organization.\n\n## How to Navigate Procurement Risks Easier\nAt Quandary Consulting Group, [our process consultants](/tech-consulting/) can help you improve your workflows and systems by building custom applications and integrating your disparate procurement processes. \n\n_Always_ within budget. _Always_ delivered on time. \n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.\n\n","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-e95d9bd4-f0cd-5349-bfd2-292461bbf9a9","title":"Procurement Cost Savings: 20 Actionable Strategies","publishedAt":"2021-08-10T15:00:00.000Z","_createdAt":"2021-06-28T08:36:46Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/627a3442f46e5e489c3fc0e947cc3de5ac538ecc-1000x667.jpg?w=1000&h=667&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/627a3442f46e5e489c3fc0e947cc3de5ac538ecc-1000x667.jpg?rect=0,1,1000,666&w=320&h=213&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/627a3442f46e5e489c3fc0e947cc3de5ac538ecc-1000x667.jpg?w=654&h=436&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/627a3442f46e5e489c3fc0e947cc3de5ac538ecc-1000x667.jpg?w=768&h=512&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/627a3442f46e5e489c3fc0e947cc3de5ac538ecc-1000x667.jpg?w=1000&h=667&auto=format 1000w","sizes":"(min-width: 1000px) 1000px, 100vw"}},"layout":"constrained","width":1000,"height":667,"placeholder":{"fallback":"data:image/jpeg;base64,/9j/2wBDAAYEBQYFBAYGBQYHBwYIChAKCgkJChQODwwQFxQYGBcUFhYaHSUfGhsjHBYWICwgIyYnKSopGR8tMC0oMCUoKSj/2wBDAQcHBwoIChMKChMoGhYaKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCj/wAARCAANABQDASIAAhEBAxEB/8QAGAAAAgMAAAAAAAAAAAAAAAAAAAUBAwf/xAAiEAACAQQCAQUAAAAAAAAAAAABAgMABBESBQYxEyFBQmH/xAAVAQEBAAAAAAAAAAAAAAAAAAAEBf/EABcRAQEBAQAAAAAAAAAAAAAAAAEAAhH/2gAMAwEAAhEDEQA/AMr6qtnZcOtzNFvsMAAZJqrsE8FubVliKu+G8fU/FT126aC0WHVWQeAaWdwvZTMY3CMoTI9vFT8i7lrzMr56xCck/o50YBhn9opa/JTzas5GQAKKfkQjqLf/2Q=="}}}},"slug":{"current":"procurement-cost-savings"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"## How to Reduce Costs in Your Procurement Process\nProcurement cost savings strategies aim to lower your overall procurement costs. And while [strategic procurement](/what-is-strategic-procurement/) is about more than cost reduction, reducing unnecessary expenses in your purchasing process is still the main goal. Cut purchasing costs drastically with these 20 actionable strategies. \n\n### 1. Request Supplier Discounts\nOpen the discussion with your vendors by simply asking if you’re eligible for discounts. You may need to renegotiate your contract to meet certain conditions, but it’s possible that a short discussion can reduce costs.\n\n### 2. Review Contracts\nLook for ways to reduce procurement costs by reevaluating the terms of your purchasing agreement. There may be bulk discounts or early payment discounts you can qualify for by changing your relationship with your vendor. \n\n### 3. Consolidate Vendors and Deliveries\nEvaluate your organizational spending and see where you can combine deliveries or expand relationships with certain vendors. This can help you achieve bulk discounts while reducing delivery costs. \n\n### 4. Review Purchasing Needs\nLook at your inventory and evaluate your services. Are you using everything you order? Is there a way to use up overstocked inventory? Are some purchases completely unnecessary? Review and cut the excess from your procurement process. \n\n### 5. Prevent Maverick Spend\nMaverick or unapproved spend leads to significant waste ([up to 80%]) as it can result in unnecessary orders from unapproved vendors, expensive purchases, and even fraud. Educate your team on spending processes and approved vendors to reduce rouge spending.\n\n### 6. Check Inventory\nBefore ordering more products, evaluate what’s in your warehouse. Unused products aren’t free to store. Plus, stored products are at risk of being damaged or becoming unneeded. \n\n### 7. Evaluate Order Quality\nSacrificing quality to save costs can result in more purchases over time. But you also don’t need the best quality product in every situation. Some mid-level products function at the same level or better depending on how they’re used. \n\nReview what you’re buying to ensure you’re paying for what you _need_, not just the “best”.\n\n\"boxes\"\n\n### 8. Improve Vendor Relationship Management\nWith vendor relationship management platforms, you can improve communication between your organization and vendors. And you can evaluate their performance, holding your suppliers to agreed on standards. This can improve deliveries while reducing costs to your business. \n\n### 9. Provide Vendor Self-Service Portals\nSave time and money by providing a way for your vendors to manage their own account information, view transactions, and communicate with your organization. This cuts down on unnecessary back-and-forth communication while ensuring deliveries meet specifications.\n\n### 10. Set Up Reverse Auctions\nReverse auctions let the vendors bid on your proposals. This drastically reduces the time and headache involved in selecting the best vendor for the job. \n\n### 11. Establish Clear Procurement Policies\nTo avoid unnecessary spending, set up clear parameters for purchases that your team can easily access and follow. This will ensure that you maximize your inventory before making further purchases.\n\n### 12. Educate and Train Staff\nProcurement is a central pillar of your organization. And optimizing cost savings is critical to keep your business functioning. Educate your team on [the best procurement practices](/what-are-procurement-best-practices/) to ensure you reduce spending.\n\n\"meeting\"\n\n### 13. Optimize Procurement Management\nIt’s not enough to train your employees on best procurement practices. As a critical department in your organization, you need to evaluate your procurement management practices and ensure they’re aligned with your budget and business strategy.\n\n### 14. Improve Risk Management\nUnexpected events can cause your procurement costs to skyrocket. [Procurement risk management](/procurement-risks-and-how-to-navigate-them/) helps you avoid or reduce risks to your business. So, when unfortunate events do happen, your business will be better prepared to act in a way that can avoid unplanned costs. \n\n### 15. Collect Better Data\nAccurate data can help improve procurement forecasting, helping your business get the best prices for goods and services. It can help you get a better understanding of your customers. And it can help reduce unnecessary spending.\n\n### 16. Integrate Procurement Systems\nSystems integration can provide your business with [major benefits](/benefits-of-systems-integration/), especially in procurement. Connected systems provide better data and cut down on menial tasks, saving you more time and money.\n\n### 17. Transition to E-Procurement \nThere are plenty of great e-procurement tools out there that can help you automate your procurement process. These systems provide better data insights, tracking, and document management. And over time, they can provide an ROI of over 720%.\n\n### 18. Automate Procurement Process\nManual invoice processing can cost up to $15 per invoice. Automating invoice processing can reduce that cost to under $5. Plus, you can avoid late fees and even get early payment discounts. \n\nThe fewer people that are involved in your procurement process, the less chance there is of costly errors. Plus, you can reduce labor costs by removing menial tasks like data entry and manual invoice processing. These costs [add up drastically](/case-study/revamped-the-erp-and-crm-in-quick-base/). \n\n**Automation removes them.**\n\n### 19. Centralize Your Data\nDisparate data systems can’t provide real-time reporting. Instead, users have to manually collect and interpret that data (if they can find it.) Streamline your data insights and reduce procurement costs with a [centralized procurement data system](/quandary-connect/).\n\n### 20. Change The Attitude Toward Procurement Savings\nProcurement savings isn’t just a procurement issue, it’s an organizational issue. From sustainable procurement practices to business operations, getting your entire team on board to adopt a mindset of procurement savings will help cut costs throughout your organization.\n\n\n\"meeting\"\n\n## Rapidly Deploy Procurement Cost Savings\nAt Quandary Consulting Group, [our process consultants](/tech-consulting/) can help you improve your workflows and systems by building custom applications and integrating your disparate procurement processes. \n\n_Always_ within budget. _Always_ delivered on time. \n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.\n","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-af0cd65c-3410-5d2f-a7f0-2bec91df59f2","title":"What's the Difference Between Sourcing, Purchasing, and Procurement?","publishedAt":"2021-09-03T17:00:00.000Z","_createdAt":"2021-09-06T18:04:34Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/830b81760c4b3a4edc49f870a222c3d8c1a133cd-1000x723.jpg?w=1000&h=723&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/830b81760c4b3a4edc49f870a222c3d8c1a133cd-1000x723.jpg?rect=0,1,1000,722&w=320&h=231&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/830b81760c4b3a4edc49f870a222c3d8c1a133cd-1000x723.jpg?w=654&h=473&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/830b81760c4b3a4edc49f870a222c3d8c1a133cd-1000x723.jpg?w=768&h=555&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/830b81760c4b3a4edc49f870a222c3d8c1a133cd-1000x723.jpg?w=1000&h=723&auto=format 1000w","sizes":"(min-width: 1000px) 1000px, 100vw"}},"layout":"constrained","width":1000,"height":723,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"difference-between-sourcing-purchasing-and-procurement"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"While people use these terms interchangeably, they’re not the same thing. Sourcing, purchasing, and procurement all focus on how your supply chain works. \n\nHowever, each term covers a specific aspect of how your organization secures the materials and services it needs to deliver on customer expectations. \n\nKnowing the difference will help you manage your procurement process much more effectively.\n\nLet’s start at the beginning.\n\n## What Is Sourcing?\nSourcing is the process of selecting and managing vendors who provide materials or services to an organization. Sourcing is a strategic process that involves establishing quality metrics, vetting vendors, and setting up partnerships with suppliers to source the supply chain. \n\nIt starts with [understanding the customer needs](https://www.infoentrepreneurs.org/en/guides/know-your-customers--needs/) and then figuring out which vendor relationships can get the customer what they need in the best way possible for the best price possible. This involves sending requests for information (RFIs), requests for proposals (RFQs), and evaluating the true cost of the partnership. Finally, they’ll send over contracts for signing.\n\nSourcing should also meet procurement and organizational guidelines. Social responsibility and ethical sourcing cannot be ignored. Customers [care more now than ever](https://www.mintel.com/press-centre/social-and-lifestyle/56-of-americans-stop-buying-from-brands-they-believe-are-unethical) about working with businesses that fulfill their role in making the world a better place.\n\nWhen sourcing is done right, organizations gain a strategic partner who works hard to help support their organizations. And they’re held accountable to established standards throughout their relationship. \n\nIf a vendor’s performance weakens, you can reevaluate the vendor against other suppliers and find a better option.\n\nWithout proper sourcing, organizations may end up paying too much for poor-quality products. They may also have more instability in their supply chains. Plus, they miss out on vendor discounts or leveraging relationships for faster deliveries.\n\n## What Is Purchasing?\nPurchasing is the part of the procurement process that focuses on buying products and services from vendors. Purchasing manages the transactional element of the procurement process, including the approval and payment process. It also involves contract negotiation.\n\nAnd this is where things get _murky_...\n\nBoth purchasing and sourcing are subsets of the procurement process. But, they’re not necessarily subsets of procurement. Instead, it depends on the [size of the organization](https://smallbusiness.chron.com/difference-supply-chain-management-large-small-company-78026.html) and how they manage procurement. \n\nIn large businesses, you can have a sourcing department, a purchasing department, and a procurement department. All are part of the procurement process, but they’re not the same process.\n\nIn smaller organizations, you can combine sourcing and purchasing into one department. Or, you can combine them into the **procurement department**. This all depends on how the organization is set up and what are its sourcing needs.\n\nStill, sourcing and purchasing are two different processes. \n\n## What Is Procurement?\nProcurement is the process of acquiring the goods and services an organization needs for its operations.\n\nThis process involves multiple steps to ensure a business can effectively acquire the materials needed to operate in a way that is both affordable and in alignment with the company’s short- and long-term goals.\n\nProcurement has multiple steps, including sourcing and purchasing. But, it goes beyond these two processes. **Here’s a basic overview of what procurement covers:**\n1. Establish [Procurement Management Framework](https://quandarycg.com/the-procurement-management-strategic-playbook)\n2. Identify needs in the organization\n3. Submit and Approve Purchase Requests (PO)\n4. Research, Evaluate, and Approve Vendors\n5. Negotiate Price and Terms\n6. Create Contracts\n7. Process Purchase Order\n8. Manage Delivery\n9. Conduct QA and Three-Way Matching\n10. Submit Invoice for Payment\n11. Manage Contracts and Ensure Consistent Results\n12. Manage Vendor Relationships\n13. Store and Track Supply Chain Data\n14. Ensure Purchases Align with Organizational KPIs\n15. Analyze Procurement Data Reduce Cost and Risk \n\nEffective procurement also involves looking for ways to reduce [risks to your supply chain](https://quandarycg.com/procurement-risks-and-how-to-navigate-them/). And it also includes actively [lowering your procurement costs](https://quandarycg.com/procurement-cost-savings/) and training new employees on technology and processes. \n\nAt the lowest level, procurement is all about ensuring your company doesn’t run out of the goods and services it needs to make the products your customers want. \n\n**But it doesn’t end there.** \n\nAs organizations become more advanced and get better data insights, you can also leverage procurement to help businesses get the edge. \n\nStrategic procurement uses real-time data insights and automation to transform your procurement process into a strategic, agile asset that gives you an edge over your supply chain and other competitors.\n\n## Sourcing vs. Purchasing vs. Procurement\nIn short, procurement is the overall process, while sourcing and purchasing are subsets of that process. While it’s technically incorrect to use the terms interchangeably, many companies do. Still, that’s not going to derail your organization. \n\nInstead, inefficiencies in your procurement process and a lack of understanding of just how vital strategic procurement is to growing your business will. \n\nThat is why it is crucial to set up efficient procurement, purchasing, and sourcing processes in your organization. These should be clearly defined based on your needs and capacity. And you should always be looking for ways to improve these processes to keep costs low and results high.\n\nIn the end, the terminology is not as important as the systems in place behind these processes to ensure that data moves from one process to the next seamlessly.\n\n![](https://cdn.sanity.io/images/55lcecww/production/a86734068f406c4b188c09aa407a91f3af6e182b-885x885.jpg?w=1000&h=1000&fit=max)\n\n## E-Procurement vs. E-Sourcing vs. E-Purchasing\nIf you’re looking for a way to streamline procurement in your business and get the data insights you need to stay competitive, then you need to look at software solutions. These can vary based on your budget and needs. In other words, there’s no one-size-fits-all approach here. \n\nFor example, if you’re looking to optimize purchasing in your organization, there are both custom and out-of-the-box e-purchasing solutions available. Custom purchasing software can automate invoice processing, saving you time and money. \n\nOn the other hand, if you need help with sourcing, you can choose to build a custom e-sourcing solution in [low code](https://quandarycg.com/low-code-guide/) that makes it easier to manage vendor relationships and get better deals. \n\nAnd if you’re a larger organization, there are full e-procurement options you can deploy that automate the entire procurement process. \n\nThese solutions work to save you time and money while giving you more transparency into your supply chain. But again, the right one depends on your specific organizational needs and your budget. \n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-1166f7c1-105f-5de5-b19c-5da7acce887d","title":"Overcoming Supply Chain Disruption in 2023","publishedAt":"2021-10-28T13:00:00.000Z","_createdAt":"2021-11-02T13:20:10Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/afb446bf5aa02542f5c0b44333ff1e7d1364f30f-885x590.jpg?w=885&h=590&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/afb446bf5aa02542f5c0b44333ff1e7d1364f30f-885x590.jpg?rect=0,1,885,589&w=320&h=213&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/afb446bf5aa02542f5c0b44333ff1e7d1364f30f-885x590.jpg?w=654&h=436&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/afb446bf5aa02542f5c0b44333ff1e7d1364f30f-885x590.jpg?w=768&h=512&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/afb446bf5aa02542f5c0b44333ff1e7d1364f30f-885x590.jpg?w=885&h=590&auto=format 885w","sizes":"(min-width: 885px) 885px, 100vw"}},"layout":"constrained","width":885,"height":590,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"overcoming-supply-chain-disruption"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"Supply chain disruption is not uncommon. But COVID has exposed the full extent of its fragility. Currently, demand continues to [drive up supply chain costs](https://www.bloomberg.com/opinion/articles/2021-10-22/supply-chain-disruption-more-like-supply-chain-overload). For a while, the economy was more or less put on hold. Now that things are opening back up, demand is outpacing supply and that’s causing major disruptions.\n\n## What Does Supply Chain Disruption Look Like?\n\nEverything is connected. When you buy a TV, it arrives at the store at the long end of a journey where it was assembled with parts built and collected from multiple different factories. \n\nWhen COVID happened, a lot of factories were shut down. Demand for goods slowed with uncertainty.\n\nNow that the world is opening back up, people all over are sitting on disposable income they’re ready to use. And with the holidays approaching, demand is outpacing supply. \n\nAs a result, goods are no longer moving smoothly through supply chains. Instead, bottlenecks are everywhere. Truck drivers, shipping containers, and space on boats [are all in short supply](https://www.nytimes.com/2021/03/06/business/global-shipping.html).\n\n\n\n\n**But it gets worse.**\n\nTo try and get ahead of supply issues after the fact, many businesses initially increased their orders to stock up. Unfortunately, all that did was increase the instability in the supply chain. As a result, goods are moving from [one bottleneck to another](https://quandarycg.com/8-warning-signs-that-you-need-to-automate-your-business/).\n\nThe resilience of the supply chain has come into question now more than ever in the wake of COVID. The post-pandemic economy has highlighted just how fragile supply chains are. Events major and minor can have a drastic, lasting impact on markets all around the world. \n\nProduction’s fragility can be seen when revisiting the example above. Building a TV requires multiple parts from many different manufacturers in different countries. If you have everything but one component, you still cannot finish production. Everything stops. \n\nWithout a steady supply of goods and services, businesses are unable to meet customer demands. They miss sales targets. They lose customers. They risk going under. \n \n## Where Is This Supply Chain Disruption Coming From?\nCurrent supply chain disruption can be traced back to the pandemic. Factories were seen as areas [where COVID could spread quickly](https://theconversation.com/coronavirus-is-spreading-rapidly-through-workplaces-heres-what-is-needed-to-make-them-safer-149333). Add to that decreased demand and these places closed down to reduce costs. \n\nShipping and transportation companies also reduced staff and hours. Ports became understaffed. In short, supply chain movement functioned at decreased rates through the pandemic.\n\nFast forward to today and the market has swung the other way. \n\nPeople are gearing up for the holidays, eager to buy. Both consumers and companies are ordering goods in volume. And the supply chain is struggling to keep pace. \n\nStill, there are other factors to consider as well. \n\n![](https://images.pexels.com/photos/4483610/pexels-photo-4483610.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n\n[Warehouse costs eat into cash flows](https://www.unleashedsoftware.com/blog/relationship-cashflow-inventory-control). So, businesses tend to keep inventory lean to reduce those costs. Unfortunately, that means that with increased demand many businesses don’t have the supply to fulfill those orders.\n\nThe way people buy (and what they buy) [has also shifted](https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-great-consumer-shift-ten-charts-that-show-how-us-shopping-behavior-is-changing). More people are buying online than in stores. They’re spending more money at home. And despite vaccines, many people are still hesitant to venture out into the world. \n\nAdd the holiday season and Black Friday, and you have skyrocketing consumer demands and a supply chain struggling to keep up. \n\n## Identifying Supply Chain Weak Points\nThe supply chain has [many moving parts](https://quandarycg.com/the-procurement-management-strategic-playbook). And at every stage, from sourcing to manufacturing to distribution, there is the potential for disruption to cause it to break down. \n\n**These are major supply chain weak points:**\n\n- **Transportation issues:** Whether by sea, ground, or air, rising gas prices, increased demand, and other unpredictable events [can create major bottlenecks](https://www.nytimes.com/2020/12/24/world/europe/uk-dover-trucks-coronavirus-france.html). \n- **Political Changes:** Goods moving across borders (whether state or international) are subject to impacts from legislative changes. \n- **Cyber Crime:** Cyber attacks are less one-off instances and [more a general occurrence](https://www.pewresearch.org/internet/2017/01/26/americans-and-cybersecurity/).\n- **Climate Changes:** Unpredictable weather events can cause lasting delays that cause ripples throughout the entire supply chain. \n- **Manufacturing Issues:** Companies producing goods are just as susceptible to supply chain issues that cause the production of goods to slow or stop. \n- **Shifting Demand:** Consumer needs shift faster than ever before, making supply and demand shifts increasingly unpredictable.\n\n## Current Supply Chain Forecasts\nSupply chain disruption is so backed up, in fact, that it could take [well over a year](https://www.vox.com/2021/10/24/22743104/supply-chain-inflation-shortages-2022) before it all sorts itself out. That means consumer goods will be in short supply over the holiday season and throughout next year. \n\n**Plus, the costs of these goods will be higher due to increased shipping costs:** \n- U.S. Consumer Price Index for energy was up [24% in September 2021](https://fred.stlouisfed.org/graph/?g=I1Hg). \n- The average cost of gasoline had also risen $1 per gallon year over year. \n- Spot rates for shipping containers [increased 236%](https://www.bloomberg.com/news/articles/2021-07-15/container-rates-to-u-s-top-10-000-as-shipping-crunch-tightens) between July 2020 and 2021. \n- [40% of CFOs](https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/supply-chain-disruptions-increased-costs-for-nearly-half-of-cfos-surveyed-in-the-third-quarter-deloitte-cfo-signals-survey.html) state that supply chain costs and shortages have increased company costs by over 5%. \n- 60% say that supply shortages will impact their bottom line by the end of the year. \n\n![](https://images.pexels.com/photos/3057960/pexels-photo-3057960.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n\nMeanwhile, ships full of cargo wait in line to dock and unload supplies. Businesses struggle to keep supplies on the shelves and adjust to price increases on goods and services. And they pass these costs down to impatient, frustrated customers looking for businesses that can better meet their needs. \n\nIt’s not a pretty picture. And while many businesses will adapt, not all of them will. Small businesses, especially those that took a hit after the pandemic (those struggling to get their momentum back), are at greater risk. \n\nThe key to overcoming these disruptions, both now and in the future, is to take a more proactive role in securing your supply chain. To secure your business, you need a [new approach to your procurement process](https://quandarycg.com/what-is-strategic-procurement/), a more agile one.\n\n## How to Make Your Supply Chain More Resilient\n[Manual processes slow businesses](https://quandarycg.com/5-examples-of-successful-workflow-optimization/) down. Data stored in spreadsheets is almost useless when you need to rapidly shift sourcing in your organization. \n\nWithout the real-time insights that integrated systems provide, you’ll be stuck with instinct and hunches to lead your business through sudden market shifts. \n\n_And that [puts business at unnecessary risk](https://www.forbes.com/sites/forbespr/2017/05/31/poor-quality-data-imposes-costs-and-risks-on-businesses-says-new-forbes-insights-report/?sh=3761be72452b)..._\n\nThe key to navigating supply chain disruptions is to ensure your procurement is more resilient. Agile businesses that leverage automation and integration [have access to real-time data](https://quandarycg.com/benefits-of-systems-integration/) that can make navigating unpredictable markets easier. \n\n> Procurement automation is an easy start to giving your organization more visibility into its supply chain. By automating processes like vendor relations, invoicing, and inventory management, you can quickly get a snapshot of your sourcing against radical shifts throughout your supply chain.> \n\nFor example, if a major political event impacts one of your vendor’s ability to ship goods to your business, you need to find an alternative supplier quickly. \n\nWith an automated vendor management system, you can quickly compare alternative vendors, negotiate pricing, and submit new contracts. As a result, your business can remain agile and ensure your customers get what they need.\n\nWithout an automated and integrated supply chain, you’re forced to be more reactive than proactive. And that will leave your business trying to catch up to trends after they happen instead of preparing for them. Investing in a streamlined supply chain is the only way to keep your business from being at the mercy of the market. \n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-d3ddbd46-3d5f-5e8f-8600-6d281a756e61","title":"Effortless Vendor Relationship Management in 10 Easy Steps","publishedAt":"2021-11-01T13:00:00.000Z","_createdAt":"2021-11-02T11:49:35Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/74e4a7461b678766c78bcf18c0e32abf57f977a9-884x590.jpg?w=884&h=590&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/74e4a7461b678766c78bcf18c0e32abf57f977a9-884x590.jpg?rect=1,0,882,590&w=320&h=214&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/74e4a7461b678766c78bcf18c0e32abf57f977a9-884x590.jpg?rect=0,1,884,589&w=654&h=436&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/74e4a7461b678766c78bcf18c0e32abf57f977a9-884x590.jpg?rect=1,0,883,590&w=768&h=513&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/74e4a7461b678766c78bcf18c0e32abf57f977a9-884x590.jpg?w=884&h=590&auto=format 884w","sizes":"(min-width: 884px) 884px, 100vw"}},"layout":"constrained","width":884,"height":590,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"vendor-relationship-management"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"Without your vendors, your business cannot function. You need a steady, reliable supply of quality goods and services. You also need to be certain that your vendors are the best fit for your company. That’s where vendor relationship management comes into play.\n\nBuilding mutually beneficial, lasting relationships with your vendors takes time, effort, and the right approach. \n\nDone wrong, and it can leave you with an unreliable supply chain that negatively impacts your customers and [puts your business at risk](https://quandarycg.com/procurement-risks-and-how-to-navigate-them/). Done right, and you can secure the support you need to overdeliver on customer expectations, remain competitive, and increase your bottom line. \n\n_What’s the best approach?_\n\nYou need to follow these 10 steps to manage your vendor relationships and develop long-term, strategic partners.\n\n## 1. Select the Right Vendor\nYou need the right partner to form a strong relationship. Your vendor’s goals should match your company’s goals. They need to charge the best price and be the best fit for your team. Also, ask yourself [if your customers will approve](https://www.achilles.com/industry-insights/the-role-of-customers-in-the-supply-chain/) of your relationships.\n\nYou should also evaluate your vendor’s business. Do they lack transparency? Struggle with communication? Have [inefficient processes](https://quandarycg.com/8-warning-signs-that-you-need-to-automate-your-business/) in place? These are clear signs of vendors you need to avoid as their systems will limit what they can do for your business.\n\n## 2. Invest in Vendor Management Software\nYou need the right tools to build the best vendor relationships. [Vendor management software](https://www.g2.com/categories/vendor-management) allows you to streamline communication with all your vendors. You can easily store their data, track their performance, and [pay their invoices on time](https://quandarycg.com/case-study/revamped-the-erp-and-crm-in-quick-base/). Even better, you can provide a self-servicing portal to make it easy for vendors to manage their relationships with you.\n\nWhile there are many vendor relationship management solutions, they're not always the best (or most affordable option for your business). For those organizations looking to stay lean, [leveraging low code](https://quandarycg.com/quandary-build/) to build these vendor portals is a better alternative.\n\n## 3. Establish Clear Expectations\nWithout clearly established expectations, your vendor will be forced to assume what you need. This can lead to problems quickly. Instead, build out your expectations clearly in your [vendor contract](https://ironcladapp.com/journal/contracts/vendor-contracts-the-5-essential-elements/). That way, you have a reference point in case you have any issues with vendor performance.\n\n## 4. Communicate Challenges Quickly\nIt’s important to have open lines of communication with your vendors, especially when problems arise. If your team notices an issue with a vendor, it should be discussed quickly. That way the issue can be resolved and the relationship remains strong. \n\n## 5. Focus on Collaboration\nProblems happen even in the strongest vendor relationships. Some things are simply out of our control. Fight the urge focus on the source of the problem. Instead, collaborate with your vendor to overcome the challenges and find solutions. \n\n**Remember:** your vendor relationship is mutually beneficial. The [adversarial vendor approach of the past](https://www.ismworld.org/supply-management-news-and-reports/news-publications/inside-supply-management-magazine/blog/2019-08/bridging-the-gap-between-adversarial-and-collaborative/) will only harm your business. \n\nAny interaction between the vendor and the business should work to benefit both parties. When both parties collaborate together, you’ll get better performance and results.\n\n![](https://cdn.sanity.io/images/55lcecww/production/6089a79c7c4d063ae7bf7ec408b714e9732bf513-840x1842.jpg)\n\n## 6. Automate Processes\n[Manual processes ruin productivity](https://quandarycg.com/process-improvement-cut-waste-and-improve-business-efficiency), waste money, and put your business at unnecessary risk. Manually processing invoices, for example, means that your vendor will have to wait longer to get paid. That means potentially missing out on vendor discounts. (This hurts both parties.) **Don’t be the bottleneck.** Identify slowdowns in your processes and automate them.\n\n## 7. Reevaluate Relationships\nThere are a lot of reasons your vendor relationship can change. Businesses are constantly growing and changing. As you grow, you need a vendor that can scale with your company. You also want to make sure you’re getting the best deal out there. But also, some relationships simply deteriorate over time. \n\nWhatever the reason, you need to revisit your vendor relationships regularly. Your goals and values should be in alignment. Their performance should increase over time. And their rates should remain competitive. By reevaluating your vendor relationships, you ensure they’re your best long-term partner.\n\n## 8. Share Your Roadmap\nKeep your vendor informed on the direction your business is heading. Sit down with them and share a brief overview of your roadmap. This way, they’ll be on the same page. If you have any major changes in your future needs, see if the vendor can fulfill them. Or, see if you’ll need to adjust your roadmap to avoid any delays.\n\n## 9. Support Your Vendors\nThere are plenty of ways you can give back to your vendors that aren’t financially based. Refer business to them. Offer to share a testimonial. Act as a reference for their future prospects. Leave reviews. Look for ways you can support business growth for your vendors and they’ll readily repay the favor.\n\n## 10. Diversify Vendors\nDon’t keep all your eggs in one basket. If you rely too heavily on one vendor, you’ll have [less room for negotiation](https://getdivvy.com/blog/how-to-negotiate-with-vendors/) when the market shifts. This means they can drive up prices, change the quality of your orders, and deprioritize you. \n\nInstead, you should use a range of vendors and avoid overdependence on any one vendor. This ensures your partnership stays balanced and mutually beneficial.\n\n## Benefits of Effective Vendor Relationship Management \nAny project your business undertakes will likely require vendors to help complete it. And while you can control a lot of variables within your organization, the moment you need a third party, you expose your business to risk. Slowdowns, missed deadlines, miscommunications, poor performance, defective products, and subpar results: a lot can go wrong when relying on vendors. \n\nVendor relationship management ensures your business works with vendors that will help them remain competitive. By keeping costs affordable, providing high-quality products, and ensuring customers stay happy, businesses can outperform their competitors. \n\nBuilding long-term, mutually beneficial relationships with your vendors keep your supply chain strong, so you can keep your customer happy while increasing your bottom line. \n\n## What to Avoid in Vendor Relationship Management\nExcessively focusing on [cost reduction](https://quandarycg.com/how-to-cut-costs-while-increasing-efficiency-in-your-business/) in your vendor relationships can ultimately harm your business. \n\nCheaper isn’t necessarily better and can cost you more in the long run. Cheaper goods may break down faster. Cheaper service may fall short of your needs. \n\nInstead, vendor relationships need to benefit both parties. Focus on a partner who can provide the goods and services you need at the best prices for your business. \n\nYou also want to avoid any situation where there’s a lack of transparency in the relationship. Your supply chain can be a complex network of vendors depending on the size of your business and your needs. The more partners you have, the harder it is to track vendor performance. \n\nRather than rely on your vendors to improve their communication, it’s better to have a vendor management system in place. A self-service vendor portal works best because it empowers vendors to supply their own data while giving them a platform for clear communication. \n\nPlus, you can easily track vendor data to evaluate pricing, performance, and competitors. \n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.\n","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-046cf4be-83c8-5ebe-ae6f-43a4e0ae24b6","title":"How to Automate Invoicing the Right Way [Actionable Guide]","publishedAt":"2021-11-04T05:00:00.000Z","_createdAt":"2021-11-10T09:16:29Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/02a5f72d9f4f70aa5c3b720ae11a15ceaadbbd1e-787x590.jpg?w=787&h=590&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/02a5f72d9f4f70aa5c3b720ae11a15ceaadbbd1e-787x590.jpg?w=320&h=240&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/02a5f72d9f4f70aa5c3b720ae11a15ceaadbbd1e-787x590.jpg?w=654&h=490&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/02a5f72d9f4f70aa5c3b720ae11a15ceaadbbd1e-787x590.jpg?w=768&h=576&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/02a5f72d9f4f70aa5c3b720ae11a15ceaadbbd1e-787x590.jpg?w=787&h=590&auto=format 787w","sizes":"(min-width: 787px) 787px, 100vw"}},"layout":"constrained","width":787,"height":590,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"how-invoice-automation-works"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"## Your Expert Guide on Invoice Automation\nMost businesses still rely on manual processes over automation. Not surprisingly, manual processes are more time-intensive and expensive than automating them. What is surprising is the cost of manual invoicing. Businesses spend between [$12 - $30 per manual invoice](https://planergy.com/blog/invoice-processing-cost/#:~:text=The%20Not%2DSo%2DMathmagical%20Costs%20of%20Manual%20Invoicing&text=Research%20firm%20Sterling%20Commerce%20puts,it%20as%20high%20as%20%2440.) (or more!). Despite that cost, manual invoicing is still quite common in small businesses.\n\n**The solution is simple: Automate the invoicing process.** \n\nBut, what exactly does that mean, and how does it work? \n\nSit tight. \n\nWe’re going to walk you through the whole process. By the time you finish this (or sooner), you’ll be on your way to automating invoicing in your business. \n\n## What Is Invoice Automation?\n[Invoice Automation](https://nanonets.com/invoice-automation?&utm_source=nanonets.com%2Fblog%2F&utm_medium=blog&utm_content=Automated%20Invoice%20Processing%20%7C%20Invoice%20Automation) is the process of extracting data from documents related to purchasing in any organization. And surprise - it involves more than just invoices. \n\nInstead, invoice automation involves pulling data from [both structured and unstructured document invoices](https://www.optiform.com/news/structured-unstructured-documents/) and inputting it into a “digital filing system” or ERP that stores the data in an easily accessible, organized way. In addition to invoices, invoice automation can include the processing of canceled checks, credit memos, shipping and collection notices, expense reports, packing slips, POs, and more. \n\n![](https://images.pexels.com/photos/4483860/pexels-photo-4483860.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n\nInvoice automation platforms also support [vendor management](https://quandarycg.com/vendor-relationship-management/). This means you can easily communicate with your suppliers, evaluate their performance, and get the insights you need to adjust purchasing in your business. \n\nWhen set up properly, invoice automation allows whoever’s in charge of purchasing in your organization to process payments with very few clicks and almost no manual data entry. \n\n## How Does Automated Invoice Processing Work?\nThe goal of automated invoice processing is to remove the human element from all but the most essential tasks. With invoice automation, you can process documents of any type (emails, PDFs, paper invoices, etc.) automatically within your purchasing platform. \n\n### Here’s how the automated invoicing works: \n1. **Collection:** Invoices are collected from email, cloud-management platforms, or vendors directly. \n2. **Processing:** Documents are [scanned using OCR](https://www.hyland.com/en/resources/terminology/data-capture/what-is-optical-character-recognition-ocr) and other intelligent software.\n3. **Verification/Approval:** Data from the invoice needs to be verified (supplier details, quantity, product numbers, company codes, etc.). Any irregularities are flagged for manual approval.\n4. **Data Inputting:** Data then gets transmitted into an ERP, purchasing, or procurement management platform. \n5. **Confirmation:** After each invoice gets processed, verification needs to be sent out to the proper source and payment gets issued.\n\n## How to Set Up Invoice Automation Software\nIt’s important to mention that your invoice automation platform needs to be set up for your business. Whether you’re using a custom solution or an out-of-the-box platform, you’ll need to teach your platform how to view the documents. \n\nIt’s often a very simple process that involves scanning unstructured or semi-structured invoices and verifying the program is pulling data from the correct fields.\n\nYou’ll also need to build out the workflow automations. With many invoice automation platforms, this involves setting up triggers and events. In short, you’ll set up the guardrails for invoice automation. \n\nThe best invoice automation platforms will make this process accessible for the end-user. While they can be highly customizable, the best invoice automation software should be approachable for anyone on your team. \n\n## What Are Triggers and Events?\nFor software automations to function properly, it requires two main components: Triggers and Events. In short, the event triggers the automation. \n\n- **Triggers:** [Automation triggers](https://www.workato.com/the-connector/automation-triggers-guide/) start the automation process or automation rule. Once the conditions of the trigger are met, the automation fires.\n- **Events:** Events are what they sound like, a predefined action that sets off the automation.\n\n### Setting Up Invoice Automation Triggers\nHow complicated this depends on the program you’re using. Some platforms allow you to record actions in real-time, automating triggers from the types of clicks made during the recording. Others require you to input the trigger manually based on predefined parameters. \n\nThe type of triggers varies depending on the platform here as well. Custom invoicing apps allow you to create almost any trigger in your invoice process. Pre-built solutions will have a list of triggers to choose from. \n\nSome examples of the types of triggers for invoice automation platforms can be: “Invoice” in the subject line, “Invoice” as an attachment, the vendor submits invoice in the portal, etc. The types of triggers you use depend on your precise needs and the platform you’re using.\n\nEither way, it takes a bit of setup before you can start automating your invoice processing. But you’ll end up saving a ton of time once all your guardrails, triggers, and events are in place.\n\n## Risks of Processing Invoices Manually \nExpensive mistakes, incomplete data, and missed opportunities are the consequences of relying on manual invoice processing over automation. And it ain’t pretty. \n\nTypically, manually processing invoices can cost between $12 - $40 per invoice. That cost drops to around [$3.50 per invoice](https://www.freshbooks.com/hub/payments/cost-to-send-an-invoice) with automation. That ties up the cost of manual, time-consuming processes that bore your employees and lead to expensive errors. \n\n### More risks from manually processing invoices: \n- Hunting down paper invoices is a frustrating, time-consuming process that can drive anyone insane.\n- Duplicate data entry means that you might be double paying on invoices.\n- Mismanaging spreadsheets can cause security breaches.\n- Invoices can get lost leading you to miss out on early payment discounts.\n- Lost invoices lead to more late [fees that add up](https://quandarycg.com/case-study/revamped-the-erp-and-crm-in-quick-base/).\n- Missed opportunities on bulk order discounts and additional delivery fees because your staff submits multiple smaller orders instead of one larger order.\n- Increase payroll costs from hiring more staff to processing more invoices as your business grows.\n- You lose real-time, actionable insights into data and reporting (this is impossible if you use spreadsheets to process invoices).\n- Accounting becomes a nightmare with documents all over the place and no clear line of sight on expenses. \n- General cash flow issues due to a lack of transparency in spending\n\n_The list goes on and on._\n\n**But the reality is this:** if you’re still manually processing invoices, your business is balancing on a knife’s edge. It’s an unnecessarily risky situation that can be completely avoided with invoice automation. \n\n## Can You Automate Invoices in Excel? \nTechnically, you can automate some aspects of invoicing in Excel. But, you can also (technically) chop down a 300-year-old Sequoia with a rusty hacksaw. \n\nThe question is, why would you want to? \n\nExcel is a tool. But, it is a limited tool. It’s not a database either. And growing businesses tend to treat spreadsheets like they are. To their own frustration, they over-rely on them to fill the gaps in their organizations. \n\nThis results in a confusing mess of mostly unusable data and a lot of time-intensive, unnecessary processes. \n\nMost importantly, it’s not necessary. \n\nThere are plenty of accessible invoicing platforms out there that will help automate purchasing in your organization. You can even have an affordable, custom one built for you [using low code](https://quandarycg.com/low-code-guide/).\n\nWith the options you have available, it’s best to [say no to spreadsheets](https://quandarycg.com/warning-spreadsheets-will-ruin-your-business/) for invoice automation. \n\n## Benefits of Invoice Automation\nThe benefits of invoice automation are immense. Essentially, they’re the opposite of everything mentioned above. In short, you’ll drastically reduce costs and increase efficiency across your organization. With software processing your payments, your staff will have more time to focus on more important tasks. Plus, you’ll get real-time insights into your purchasing.\n\n### More Benefits of Invoice Automation:\n- Eliminate duplicate invoices and stop overpaying.\n- Eliminate maverick spending with better purchase tracking. \n- Remove data entry errors by automatically inputting data into your ERP.\n- Improve cash flow with real-time insights into spending.\n- Ensure vendors meet or exceed expectations with vendor tracking.\n- Save time and improve communication with self-service vendor portals.\n- Reduce bottlenecks and processing time with approval guardrails.\n- Conduct three-way matching to ensure the highest accuracy.\n- No more lost documents or time wasted trying to find invoices.\n- Reduce late fees (get early pay discounts).\n- Keep your data secure.\n\n_To name just a few..._\n\nWhile there is a price tag associated with invoice automation, however, if implemented correctly, the investment pays for itself rapidly. Invoice automation streamlines purchasing throughout your entire organization and gives you the time and resources needed for continued growth. \n\n[Automating your organization](https://quandarycg.com/automating-workflows/) doesn’t mean you need a complete overhaul. Instead, it can start by streamlining one problematic workflow that costs your organization a lot of money. If you’re still manually processing invoices, then automating that workflow is where you need to start.\n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.\n\n\n","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-eb1b8024-86a8-517f-91f4-598f190cb044","title":"How to Design a Fool-Proof Procurement Strategy [9 Steps]","publishedAt":"2021-11-11T11:00:00.000Z","_createdAt":"2021-11-14T09:56:27Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/5d9b448bd1e0aa1a83e65f88e41af0b760a06d24-2000x1335.jpg?w=2000&h=1335&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/5d9b448bd1e0aa1a83e65f88e41af0b760a06d24-2000x1335.jpg?rect=2,0,1996,1335&w=320&h=214&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/5d9b448bd1e0aa1a83e65f88e41af0b760a06d24-2000x1335.jpg?rect=1,0,1998,1335&w=654&h=437&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/5d9b448bd1e0aa1a83e65f88e41af0b760a06d24-2000x1335.jpg?rect=1,0,1999,1335&w=768&h=513&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/5d9b448bd1e0aa1a83e65f88e41af0b760a06d24-2000x1335.jpg?rect=1,0,1999,1335&w=1024&h=684&auto=format 1024w,\nhttps://cdn.sanity.io/images/55lcecww/production/5d9b448bd1e0aa1a83e65f88e41af0b760a06d24-2000x1335.jpg?w=1366&h=912&auto=format 1366w,\nhttps://cdn.sanity.io/images/55lcecww/production/5d9b448bd1e0aa1a83e65f88e41af0b760a06d24-2000x1335.jpg?w=1600&h=1068&auto=format 1600w,\nhttps://cdn.sanity.io/images/55lcecww/production/5d9b448bd1e0aa1a83e65f88e41af0b760a06d24-2000x1335.jpg?rect=1,0,1999,1335&w=1920&h=1282&auto=format 1920w,\nhttps://cdn.sanity.io/images/55lcecww/production/5d9b448bd1e0aa1a83e65f88e41af0b760a06d24-2000x1335.jpg?w=2000&h=1335&auto=format 2000w","sizes":"(min-width: 2000px) 2000px, 100vw"}},"layout":"constrained","width":2000,"height":1335,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"how-to-design-a-fool-proof-procurement-strategy"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"For the longest time, procurement strategy was about developing adversarial relationships with vendors in zero-sum games to drive down expenses, no matter the cost. \n\n_That's changed._ \n\nInstead, more businesses now see procurement as a strategic part of their business mission. And they’re developing robust procurement strategies focused on building mutually beneficial relationships with vendors. The end result is a more resilient supply chain and a more competitive business. \n\nSo, how do you transform sourcing and purchasing in your business into processes that give your business the edge?\n\nIn a market where [disruption is the new norm](https://quandarycg.com/overcoming-supply-chain-disruption/), you need to know how to build a fool-proof procurement strategy that leverages the purchasing power of your organization to secure stronger vendor relationships while setting up systems designed to give you deeper insights. \n\nHere's how to make that happen. \n\n## What Is a Procurement Strategy?\nA procurement strategy is a long-term plan designed to align your organization’s entire procurement processes with the overall goals of your business while simultaneously reducing costs and ensuring supply chain stability. \n\nThe most effective procurement strategies are based on strong procurement management principles. And they focus on fostering mutually beneficial, long-term relationships with vendors with ensuring the needs of all parties (the business, the suppliers, and the customer) are met.\n\n**Every successful procurement strategy focuses on these components:**\n- [Maximizing cost reduction](https://quandarycg.com/how-to-cut-costs-while-increasing-efficiency-in-your-business/) without compromising on quality.\n- Ensuring the end customer gets the best price for their goods and services. \n- Designing strong, mutually beneficial [vendor relationships](https://quandarycg.com/vendor-relationship-management/).\n- Examining vendors to ensure ethical, sustainable sourcing. \n- Analyzing supply chain risks to avoid unnecessary disruption.\n- Providing accurate [demand forecasting](https://www.shipbob.com/blog/demand-forecasting/).\n- Evaluating KPIs to gauge performance and shift strategy.\n- Informing leadership of new opportunities.\n\n![](https://images.pexels.com/photos/9716369/pexels-photo-9716369.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n\n## Procurement Strategy Benefits\nLet's start with cost. Without a strong procurement strategy in place, waste in your business will rise. \n\nBulk order discounts, consolidated shipping, and early invoice payments are just a few cost reduction benefits you receive when you work with approved vendors. \n\nWithout a procurement strategy in place, you'll have more [maverick (unapproved) spend](https://blog.sievo.com/maverick-spend). These ad hoc purchases will ruin your budget, forcing you to miss out on the cost-saving benefits found in vetting and negotiating long-term relationships with vendors.\n\nAnd when maverick spend can make up [80% of a company’s total spend](https://www.cips.org/supply-management/opinion/2014/october/five-things-you-need-to-know-to-tackle-maverick-spend/), those missed opportunities quickly add up. So, you'll burn through your budget and spend more than you need on goods and services.\n\nInstead, every purchase in your organization needs to be a part of a larger overall strategy. By working with approved vendors, you can put the weight of the company behind purchases, consolidate orders, reduce fees, and even get deep discounts on bulk orders. \n\n**But, it goes beyond [procurement cost savings](https://quandarycg.com/procurement-cost-savings/).**\n\nNot having a procurement strategy in place drastically (and unnecessarily) increases your exposure to risk. Unapproved vendors may be involved in unethical or unsustainable sourcing and practices. \n\nIn a world with increasing transparency and accountability, the lack of a clearly defined procurement strategy in place could cause [irreparable damage](https://spendmatters.com/2016/02/15/ethical-sourcing-do-consumers-and-companies-really-care/) to the reputation of your business.\n\nFinally, you may get goods and services that are of poorer quality or delivered sporadically. Without a procurement strategy in place, you have no way to vet vendors and establish clear expectations in contracts you can enforce. \n\nYou also have no historical data to track vendor performance. Poor quality products, weak services, and delays in distribution can create bottlenecks in your business that can potentially damage your customer and client relationships.\n\n## How to Create a Procurement Strategy\nThe most effective procurement strategies are data-driven and look for ways to leverage your supplier relationships to achieve business goals.\n\nYour procurement strategy must also work within the guidelines established by your procurement management framework and within the existing infrastructure of your organization.\n\nFollow these simple steps to build a successful procurement strategy. \n\n**Note:** before developing your procurement strategy, you’ll need to have a [strong procurement management foundation](https://quandarycg.com/the-procurement-management-strategic-playbook) in place. \n\n![](https://images.pexels.com/photos/1181343/pexels-photo-1181343.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n\n### 1. Review Your Business Goals\nYour procurement process should support your organization's main goals. It should never run against the overall business strategy. Start by reviewing your company’s goals and its mission. After, make sure you plan within that framework.\n\n### 2. Analyze the Situation\nReview the state of your existing procurement process. Whiteboard your workflows and processes. Review your data. Analyze your vendor relationships. You’re looking for strengths and weaknesses.\n\nYou also want to evaluate your company's current expenditure. Dive into spending habits and look for areas where you can reduce or eliminate costs. And use your initial findings as a baseline to gauge the success of your procurement strategy. \n\n### 3. Examine Procurement Solutions\nProcurement is a complex web of processes and workflows that grows more intricate as a business expands. As your procurement process becomes more complex, it becomes increasingly difficult and time-consuming to manage manually. \n\nYour organization **cannot compete** if it still heavily relies on manual processes and workflows. [Automation is the key](https://quandarycg.com/process-improvement-cut-waste-and-improve-business-efficiency) to success. Luckily, you don’t need to burn through your IT budget trying to reinvent the wheel. Instead, you have two great options: Turnkey Procurement Software Solutions and Custom Applications Built-in [Low Code](https://quandarycg.com/low-code-guide/). \n\n- **Turnkey Procurement Products:** Off-the-shelf solutions that provide a range of features designed to automate several procurement workflows. From invoice automation to vendor management, these one-size-fits-all products help streamline procurement quickly. \n- **Custom Low Code Procurement Applications:** Low code empowers businesses to rapidly design custom applications and integrations using a drag and drop interface. Using these SaaS platforms, you can get the applications you need in a fraction of the time and for a fraction of the cost compared to traditional application development. \n\nEither way, you’ll need to invest in better systems if you want to leverage your procurement process as a strategic asset. Otherwise, your procurement strategy will be limited to (at best) surface-level cost-cutting strategies. And you can only eliminate and consolidate so much before you negatively impact your business.\n\n### 4. Asset the Market\nAny strategy you design needs to look beyond your business. With better systems in place, you need to evaluate your supply chain and collect market insights. The goal is to identify trends and potential shifts in both customer demands and supply chain logistics. (Again, this is where having the right tools makes the job easier.)\n\nTracking changes in supply chain trends and customer data will provide better insights that can help your business rapidly adapt in a constantly shifting marketplace. \n\nFor example, demand forecasting and inventory monitoring will help you adjust sourcing strategies to ensure your business has what it needs to continue to meet customer demands. \n\nIn short, you need to know where the market and your customers are heading. Once you know that, you can start planning how your procurement processes can ensure your business can support them on their journey.\n\n### 5. Develop the Strategy\nWith your framework, tools, and insights in place, you can build a strategic map that connects the needs of your customers with the goals of your business. \n\nYour strategy needs to be comprehensive. It should cover everything in your procurement process from maintaining vendor relationships to [managing tail spend](https://www.fairmarkit.com/blog/what-is-tail-spend-and-how-can-we-manage-it). The more robust and detailed it is, the more effective it will be.\n\n**Successful Procurement Strategies Prioritize:**\n- Cost Reduction\n- [Vendor Relationship Management](https://quandarycg.com/vendor-relationship-management/)\n- Responsible and Ethical Sourcing\n- Risk Management\n- [Total Quality Management (TQM)](https://asq.org/quality-resources/total-quality-management)\n\nYou also need to determine what [procurement KPIs](https://kissflow.com/procurement/procurement-kpis/) you’ll use to gauge success. And you’ll want to keep the overall strategy simple and easy to follow. \n\nDon’t be afraid to delegate work. With a self-service portal, for example, your vendors can manage their own profiles and keep their data accurate. By delegating that work to your vendors, you have more time and resources for other tasks. \n\nYou should avoid getting [stuck in the trap](https://blogs.sas.com/content/sascom/2015/05/26/stop-cleansing-your-historical-shipment-data/) of cleaning up historical data. It tends to be a time- and resource-intensive process that can cause more problems than solve. Instead, focus on gathering and storing new, actionable insights. \n\nFinally, your procurement strategy should [prioritize process improvement](https://quandarycg.com/process-improvement-cut-waste-and-improve-business-efficiency). Look to automate manual processes. And build out workflows that have the best interests of your customers and your team in mind. \n\n### 6. Design SMART, Achievable Goals\nYour procurement strategy should help you achieve realistic goals. [SMART goals](https://www.mindtools.com/pages/article/smart-goals.htm) are just that: Specific, Measurable, Achievable, Relevant, Timely. With clearly defined, realistic goals and a way to gauge success, you can quickly measure how effective your procurement strategy is.\n\n### 7. Analyze Risks\n[Analyzing risk in your procurement process](https://quandarycg.com/procurement-risks-and-how-to-navigate-them/) is crucial to maintaining the resilience of your supply chain. You can never remove risk completely, but you can manage it. \n\nThe pandemic exposed just how fragile the supply chain is. Government instability, natural disasters, price fluctuations, there is a multitude of outside influences that can shut down procurement in your organization. \n\nYour procurement strategy should recognize these potential threats and have plans for mitigating their impact on your business. \n\n![](https://res.cloudinary.com/quandary-consulting-group/image/upload/v1630248802/10_Procurement_Risks_yw6vwz.jpg)\n\n### 8. Implement and Manage the Strategy \nWhen it comes to rolling out your procurement strategy, you need to be tactical. Successfully deploying a new procurement strategy involves exceptional project management and stakeholder management skills.\n\nYou need to start by discussing your plan with key decision-makers. Any drastic shift in how your organization functions will require top-down support. You'll need to [successfully navigate change management](https://www.business2community.com/cloud-computing/how-to-start-a-transformational-change-management-process-02407642). \n\nThat means speaking to team members, vendors, and other players that your procurement strategy will impact. You want buy-in from these key players. \n\nThey'll need to be ready to use the tools you invest in and follow the guidelines you create. Otherwise, you'll fail to implement your strategy. \n\n### 9. Review and Improve\nNothing goes according to plan. You can have all the data insights, strong vendor relationships, and streamlined systems, and still fall short in some areas. That's the nature of building and deploying strategies. The key is to evaluate performance against your baseline data and established KPIs, then adjust your strategy. \n\nYou're never finished optimizing your procurement strategy. \n\nThe market is always changing. The \"[Amazon Effect](https://blog.smartsense.co/amazon-customer-expectations-supply-chain)\" means that your customers' expectations will continue to increase. Pair that with an increasingly complex, globalized marketplace, and you'll quickly realize that you'll need to regularly revisit your procurement strategy. \n\nHowever, if you follow these steps, you'll have a strong procurement strategy framework to work from. You'll also have better workflows and processes in place. Additionally, you'll have clean data you can use to make informed decisions. That means that updating and it'll be easier to optimize your procurement strategy in the future. \n\n![](https://cdn.pixabay.com/photo/2017/08/24/16/07/truck-2677373_1280.jpg)\n\n## Eliminating Manual Procurement Processes\nIf you over-rely on manual procurement processes, you're putting your business at a clear disadvantage. Manual processes are time-consuming, costly, and error-prone. They put your business at unnecessary risk while burning through your resources.\n\nYou can design the best procurement strategy, but if you don't have the tools to automate workflows and gain clear, accurate data insights, you'll fall short. \n\nThe solution is to identify key areas in your procurement workflows that could benefit from automation. After, you need to invest in better systems to streamline these manual processes with custom applications and integrations.\n\nFor example, [with invoice automation](https://quandarycg.com/how-invoice-automation-works/), you can pay your vendors faster, strengthening your overall relationships. And you can avoid overpaying vendors with duplicate invoices. You can even unlock early pay discounts. All saving your business more money. \n\nWithout the cost reduction of eliminating manual tasks, you can never fully compete with more streamlined businesses.\n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.\n","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-f36c3107-1450-59dc-9390-f2399ae920b8","title":"11 Core Benefits of Procurement Automation","publishedAt":"2021-11-16T23:00:00.000Z","_createdAt":"2021-11-17T23:32:04Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/928276d3a8ee747bc9fbb458b5af22e483da3b89-884x590.jpg?w=884&h=590&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/928276d3a8ee747bc9fbb458b5af22e483da3b89-884x590.jpg?rect=1,0,882,590&w=320&h=214&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/928276d3a8ee747bc9fbb458b5af22e483da3b89-884x590.jpg?rect=0,1,884,589&w=654&h=436&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/928276d3a8ee747bc9fbb458b5af22e483da3b89-884x590.jpg?rect=1,0,883,590&w=768&h=513&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/928276d3a8ee747bc9fbb458b5af22e483da3b89-884x590.jpg?w=884&h=590&auto=format 884w","sizes":"(min-width: 884px) 884px, 100vw"}},"layout":"constrained","width":884,"height":590,"placeholder":{"fallback":"data:image/jpeg;base64,/9j/2wBDAAYEBQYFBAYGBQYHBwYIChAKCgkJChQODwwQFxQYGBcUFhYaHSUfGhsjHBYWICwgIyYnKSopGR8tMC0oMCUoKSj/2wBDAQcHBwoIChMKChMoGhYaKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCj/wAARCAANABQDASIAAhEBAxEB/8QAFwAAAwEAAAAAAAAAAAAAAAAAAAYHBf/EACMQAAICAgIBBAMAAAAAAAAAAAECAwQFEQAGEhMiQWEhMYH/xAAUAQEAAAAAAAAAAAAAAAAAAAAA/8QAFBEBAAAAAAAAAAAAAAAAAAAAAP/aAAwDAQACEQMRAD8AmFPFUsc9+R49WazBfM+4En5/vHfDZChe6rYqpPWNu44Lo426uPkfXETvWSENuxUqwLFFbl02mJ0BzLF6br2Zrw1PB1VQ5Lr+TsfrfAr1i/lcIy0lgguhFB9YELvf1w5M8x22aS6WjrJGviPb5k8OB//Z"}}}},"slug":{"current":"benefits-of-procurement-automation"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"Surprisingly, many businesses still rely on manual processes. And that’s perhaps most apparent (and painful) in the procurement process.\n\nPaper invoices strung about on desks, waiting to get processed. Contracts, buried, nearly forgetting in filing cabinets. Spreadsheets with purchase data, incorrectly entered, waiting to make an accountant’s life a nightmare. \n\nWhile [a powerful procurement strategy](https://quandarycg.com/how-to-design-a-fool-proof-procurement-strategy/) can empower your organization, you won’t get far without automating your procurement process. \n\nWhether you’re on the fence about procurement automation or you need selling points for your c-suite, here are 11 benefits of procurement automation to help drive change in your organization. \n\n## 1. Improved Organization\nAs mentioned above, paper documents make everything messy. They can get misfiled, lost, even destroyed. Procurement automation digitizes these assets, keeping them organized and accessible. \n\nThat way, you never have to hunt down documents again.\n\n_Imagine how much easier future audits will be..._\n\n## 2. Centralized Communication\nDeploying a procurement automation system helps streamline communication by centralizing it. Rather making vendors try to find a way to communicate with you, they can use their self-service portal. Employees can request purchases directly on the platform. And management can approve purchase orders instantly or ask for further information. \n\nNo more hunting around on email threads, paper communications, and voicemail to find the information you need. \n\n## 3. Unparalleled Cost Savings\nIn a [recent global survey](https://www2.deloitte.com/content/dam/Deloitte/us/Documents/Alliances/us-coupa-alliance-cpo-perspective.pdf), CPOs shifted for the first time in 10 years stating that cost reduction wasn't the main focus of their procurement strategy. Still, 76.4% reported it as their second priority. (Driving operational efficiency was their highest priority at 78%.)\n\nWhile there’s more to a successful procurement strategy than [cost reduction techniques](https://quandarycg.com/how-to-cut-costs-while-increasing-efficiency-in-your-business/), controlling spending is still essential. \n\nLuckily, procurement automation helps reduce expenses drastically.\n\nAutomation rapidly reduces the need for employees to work on menial tasks. This cuts labor costs significantly while giving your team more time to focus on high-level tasks. \n\nWithout the systems in place to automate these processes, you can’t hope to compete with leaner businesses that leverage the power of automation.\n\nManually processing invoices, for example, can cost between $12 - $40 per invoice. That cost drops to around [$3.50 per invoice](https://www.freshbooks.com/hub/payments/cost-to-send-an-invoice) with automation. [Automating invoice processing](https://quandarycg.com/how-invoice-automation-works/) can also help you save more by avoiding late fees and even getting early payment discounts. \n\nIncredibly, that’s just the tip of the iceberg for your true cost savings potential with procurement automation.\n\n![](https://images.pexels.com/photos/2574997/pexels-photo-2574997.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=650&w=940)\n\n## 4. Improved Vendor Relationships\nAdversarial vendor relationships are a thing of the past. For any business to be successful, it needs to team up with other businesses to provide the best possible value for the best possible price to its customers. \n\nVendors want to know you have their best interest at heart. And vice versa. \n\nProcurement automation helps facilitate that. Invoice automation helps ensure you pay your vendors on time. This helps establish trust. You can also compare vendors to ensure your suppliers are the best ones for your business. And with streamlined communication, you can improve operational efficiency, making it easier for your vendors to work with you.\n\n## 5. Real-Time Reporting\nAutomation makes real-time reporting possible. Without connected systems, you’re stuck relying on spreadsheets to transmit data between systems manually. Even if you use applications, that can still mean waiting until the end of the day to run a report. As a result, you’re always working off of yesterday’s news. \n\nProcurement automation connects disparate systems, giving you real-time data insights. \n\nUltimately, you’ll have a clearer understanding of budgeting and spending. Inventory management will be easier. And evaluating vendor performance can happen in minutes, not days. \n\n## 6. Powerful Data Insights\nThe only thing worse than no data is [dirty data](https://www.marklogic.com/blog/the-staggering-impact-of-dirty-data/). And if you rely on manual data entry in your procurement process, it’s likely that a lot of that data is dirty. When employees have to copy and paste data from system to system, duplication, and mistakes happen. Additionally, you could be collecting a lot of data that never gets used.\n\nEither way, you end up with an inaccurate or incomplete picture of your customers and their needs. That can lead you down the wrong path. \n\nProcurement automation ensures that the data you collect is accurate so you can build a business to meet the growing, real needs of your customers. \n\n## 7. Clear Data Dashboarding\nMultiple systems mean multiple dashboards. And that usually means a headache-inducing collection of different data points. Even the terminology (used to describe the same variables) can be different enough on various platforms to be confusing. Consolidating this data means paying an employee to sort through reports and put them together in a report that’s understandable. \n\nAll that takes time. \n\nUnfortunately, that means that by the time the report is ready, the data may not be accurate anymore. \n\nProcurement automation [streamlines reporting](https://quandarycg.com/procurement-automation-services/). With integrated systems, your purchasing data will flow into a single portal that’s easily accessible. No more waiting days or weeks for reports. No more trying to piece multiple reports together. Instead, you get clear, actionable insights at a glance. \n\n## 8. Make Smarter Purchases\nWhen your purchases are scattered across your organization, it’s impossible to make informed decisions. You'll miss bulk order discounts, overpay on deliveries, and miss opportunities to save at every turn. Plus, your tail spend will be out of control with an endless stream of unapproved purchases. \n\nProcurement automation gives you deeper insights into your purchases. You can combine and approve purchases, eliminate overspending, and leverage supplier performance data for better prices. \n\n## 9. Supply Chain Transparency\nMost businesses struggle to get a clear picture of their supply chain. This exposes them to unnecessary risks and complications. Whether they’re overspending on one vendor or working with another supplier who’s engaged in unethical sourcing practices, their customers [will hold them accountable](https://sustainabilitymag.com/supply-chain-sustainability/survey-shows-consumers-avoid-unethically-sourced-products).\n\nAutomating your procurement process drastically increases transparency in your supply chain. This helps you build long-term, mutually beneficial relationships. It also helps you find [new market opportunities](https://sloanreview.mit.edu/article/how-supply-chain-transparency-boosts-business-value/) that can lead to business growth. Best of all, you can ensure sourcing is both ethical and sustainable across your supply chain.\n\n![](https://images.unsplash.com/photo-1512099053734-e6767b535838?ixid=MnwxMjA3fDB8MHxwaG90by1wYWdlfHx8fGVufDB8fHx8&ixlib=rb-1.2.1&auto=format&fit=crop&w=1028&q=80)\n\n## 10. Drastically Reduce Risks\nMost people don’t enjoy menial, manual tasks like data entry. Monotonous tasks are soul-draining, time-intensive, and don’t provide much in terms of fulfillment. As a result, it’s hard for people to focus while working on them. In the end, employees tend to make a lot of costly mistakes when carrying out these tasks.\n\nIncorrect data can cause [all kinds of problems](https://www.ocrolus.com/blog/human-error-8-eye-popping-sets-of-stats-and-examples/). Employees can mismanage budgets, overorder goods, and even derail entire projects. However, procurement automation removes the human component and eliminates the risk of manual data entry errors.\n\n## 11. Adapt to Unpredictable Market Conditions\nUncertainty is the new norm. The pandemic exposed the [fragility of our supply chains](https://quandarycg.com/overcoming-supply-chain-disruption/). And it will be a while before everything catches up.\n\nStill, the truth is that the market will always have unpredictable elements. There are simply too many factors for a person to analyze. And a globalized marketplace increases those factors exponentially. \n\nProcurement automation gives you the time, data, and resources you need to keep your business agile. It also expands your insights into your supply chain, so you can better understand [the potential risks](https://quandarycg.com/procurement-risks-and-how-to-navigate-them/). \n\n**And that gives you the advantage.**\n\nRather than reacting to change, you’ll have the power to proactively adapt your supply chain to changing market conditions and customer demands. Instead of playing catch-up, you’ll be ahead of the game.\n\n","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-a7a8b01c-7743-5a27-94cd-da622ad210a4","title":"12 Critical Invoice Metrics You Need to Monitor for AP Success","publishedAt":"2021-11-29T06:00:00.000Z","_createdAt":"2021-11-30T15:49:50Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/e27155f4efa618455e675f21f7fd3875769b101e-885x590.jpg?w=885&h=590&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/e27155f4efa618455e675f21f7fd3875769b101e-885x590.jpg?rect=0,1,885,589&w=320&h=213&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/e27155f4efa618455e675f21f7fd3875769b101e-885x590.jpg?w=654&h=436&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/e27155f4efa618455e675f21f7fd3875769b101e-885x590.jpg?w=768&h=512&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/e27155f4efa618455e675f21f7fd3875769b101e-885x590.jpg?w=885&h=590&auto=format 885w","sizes":"(min-width: 885px) 885px, 100vw"}},"layout":"constrained","width":885,"height":590,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"key-invoice-metrics-that-matter"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"When it comes to evaluating the success of your accounts payable operations, there are several key invoicing metrics that matter. While the market changes constantly, these KPIs tend to remain the same. Evaluating these 12 invoice metrics is the first step in planning out AP improvements and evaluating their success.\n\n## 1. Invoice Processing Costs\nCalculating invoice processing costs isn’t easy. Not all invoices are straight-through processes. There are exceptions, non-PO invoices, and manual invoice processing to consider. If you automate your invoice processing, that cost drops significantly. Still, there is a cost.\n\nSurprisingly, [64% of businesses still process invoices manually](https://smallbiztrends.com/2017/04/manual-process.html). (80% still use paper checks to some degree.)This is shocking once you realize that [e-procurement solutions](https://quandarycg.com/the-top-5-procurement-software-for-your-business/) have been out for over 20 years. These platforms can drastically reduce invoice processing costs by automating the entire process. \n\nManually processing invoices isn’t cheap ([around $15 per invoice](https://www.beanworks.com/blog/invoice-processing-costs-how-much-does-it-cost-you-to-process-an-invoice/)). There is the cost of your AP staff, materials (for example, paper and ink to print out invoices), and other expenses that roll into that cost. \n\nThat cost can [drop by as much as $13](https://www.beanworks.com/resources/research/mature-accounts-payable-for-sme/) with invoice automation. And if you process 300 invoices a month, you could save up to $46,800 each year with invoice automation alone. \n\n## 2. Invoice Processing (Cycle) Time\nMost businesses still process invoices manually. That means that invoices can take two weeks or more to process. In fact, small-to-mid-sized companies take [25 days to process a single invoice](https://www.ascendsoftware.com/blog/how-much-time-should-it-take-to-process-an-invoice-with-automation-software) (from receipt to payment). With automation, you can drop that processing time down to a day or two. \n\nThe longer an invoice is out, the greater risk it poses to your business. Processing costs go up. You miss out on early payment discounts. There are more invoices. And if your team is manually processing these invoices, there’s the added stress and pressure to stay caught up. \n\nWorse, your team is rushing through menial tasks instead of focusing on high-level, strategic activities that can drastically grow your business.\n\n![](https://images.pexels.com/photos/2529787/pexels-photo-2529787.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n\n## 3. Invoice Discounts: Captured vs. Offered\nVendors offer discounts all the time. Does your business take advantage of them? Track how many discounts offers your vendors provide against how many your company gets. Also, look at the value of those discounts in potential savings vs. actual savings. \n\nIf your business misses too many of these opportunities, you should look at automating procurement processes. With procurement automation, you can receive notifications and reminders to help your accounts processing department cash in on more vendor savings. \n\n## 4. Invoice Exception Rates\nIn a perfect world, all your invoices would be processed straight through. Sadly, that’s not the case. In fact, invoice exception rates are around 23%. Invoice exceptions can grind your accounts payable department to a halt by slowing down invoice processing. \n\nThey require more hands-on involvement, analysis, and more team members to solve. Plus, there’s the additional back and forth with vendors as your team tries to verify the details they need to process the invoice. \n\nLuckily, you can put systems in place to help reduce the invoice exception rate. \n\nSelf-service vendor portals, for example, make the vendor responsible for submitting accurate data and invoices. They also keep communication centralized in an accessible platform.\n\nE-procurement platforms also lower invoice exception rates by streamlining invoice processing. You can establish clear rules to automate approvals. And you build exceptions into the framework. \n\nOver time, you can build extensive guidelines for approvals that cover a range of situations, lowering your invoice exception rates.\n\n## 5. Straight Through Invoice Processing Rates\nStraight through invoice processing is when an invoice is received, approved, and paid automatically. Straight-through invoices are much cheaper (and faster) to process than invoice exceptions.\n\nThe higher your straight-through invoice processing rate, the lower your overall costs will be. \n\n**That’s not all**. \n\n[Your vendor satisfaction rate](https://quandarycg.com/vendor-relationship-management/) will be higher (because everyone enjoys being paid faster).\n\nAP Automation can help significantly improve your straight-through processing. Again, with the automated workflows in place, you can process straight-through invoices faster than any humanly possible. Machine learning and built-in guardrails can help increase your straight-through invoicing processing rate, too.\n\n![](https://images.pexels.com/photos/4386442/pexels-photo-4386442.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n\n## 6. Working Capital\nYour procurement process is directly connected to your organization’s cash flow. You should be able to accurately measure your working capital by subtracting your liabilities and expenses from your assets. \n\nMore so, with streamlined invoicing, you should be able to reduce liabilities and expenses, securing more working capital for the organization. And you should be able to provide these insights in real-time.\n\n## 7. Invoice Linked to Purchase Order (PO) Rate\nThe more invoices you have linked to POs, the better your record-keeping will be and the more visibility you’ll have into your spend data. With tracked POs, you can reduce maverick spending, fraud, and [other risky purchasing practices](https://quandarycg.com/procurement-risks-and-how-to-navigate-them/). Plus, you can better forecast and secure cash flow.\n\n## 8. Late Payments and Penalties vs. On-Time Payment\nYou can lose a lot of money unnecessarily due to late payments and penalties. Additionally, you can needlessly damage vendor relationships and the reputation of your business. Analyze the number of invoices you pay on time against those paid late. Use that as a benchmark to track performance. Your goal should be to eliminate late payments and penalties altogether. \n\nIt’s a good idea to track Average Days Delinquent (ADD) and not just the number of late invoices. Seeing how long it takes for your AP department to pay late invoices can be an eye-opening way to gauge efficiency.\n\n## 9. Supplier Inquiries, Discrepancies, and Dispute Rate\nThe more your team has to manually untangle difficulties and problems in your supply chain, the less efficient it will be. Sadly, most of these problems happen because of human error. On the bright side, automating your purchasing and procurement processes can seriously reduce most of the issues that arise with suppliers. \n\nEverything from duplicate invoicing to QA concerns can be managed and resolved on these platforms.\n\n## 10. DSO and CEI\n**Days Sales Outstanding (DSO)** measures how many accounts you have outstanding and their total value. Knowing this helps you better understand cash flow in your organization. The lower your DSO, the quicker your company collects payments. This shows how ready your business is to provide credit to clients and customers. \n \n**Collection Effectiveness Index (CEI)** also measures how quickly your business collects payments over the long-term. It’s not a snapshot of your collection (like DSO). Instead, it’s an overall view of your collection rate. \n\n## 11. Invoice Automation ROI\nWhile automation is [best practice for increasing procurement efficiency](https://quandarycg.com/what-are-procurement-best-practices/), you still need to evaluate your ROI. Not every system in your purchasing workflows needs to be automated. Instead, you should take a strategic approach and address the major concerns first. \n\nInvoice automation is a great starting point. \n\nStill, you should map out your purchasing workflows and identify key points to improve with automation. Next, you should track performance over time. Finally, you should share those performance KPIs with your leadership team to inspire further AP optimizations.\n\nIf you’re starting out and looking for a way to communicate the ROI, you can run the numbers manually and make some projections. Alternatively, you should [work with a technology consultant](https://quandarycg.com/tech-consulting/) who can walk your C-Suite through the ROI for various AP process optimizations.\n\n![](https://images.pexels.com/photos/3184398/pexels-photo-3184398.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n\n## 12. Vendor and Employee Retention Rate\nInefficient systems [burn employees and partners out](https://startupnation.com/manage-your-business/process-optimization-cures-employee-burnout-shuler/). People don’t want to work harder than necessary to get a job done. And if you stress them out for too long, they’ll look for better employers or partners. A high churn rate in employees and vendors could indicate that your systems are exhausting everyone involved. \n\nYour goal should be to lower this rate over time.\n\n## The Benefit of Tracking Accounts Payable Metrics\nIf you can’t measure something, you have no way of knowing how well it’s performing. Without that baseline, it’s impossible to suggest improvements or see the impact of your efforts. \n\nYou may also find yourself in a position where you’re overfocusing on processes that aren’t the real issue. As a result, you may put a lot of money into new systems that don’t yield a justifiable ROI. \n\nBy focusing on these core KPIs, you can streamline your AP operations, drastically reducing costs and increasing efficiencies. And you’ll have the data that underscores the value of your improvements, inspiring you to act and inspiring leadership to give you the resources you need to further optimize purchasing in your organization. \n\n## What’s the Best Way to Measure Invoicing Metrics?\nWhen looking for ways to improve your invoice processing, the last thing you want to do is add more time-consuming tasks. [Tracking metrics in a spreadsheet](https://quandarycg.com/warning-spreadsheets-will-ruin-your-business/), for example, is not a good idea. You open yourself up to data entry errors, slower reporting, and incomplete data. Instead, it’s better to track your KPIs using procurement automation or AP automation platforms.\n\nE-procurement software (whether it’s custom-built or turnkey) integrates your disparate systems and workflows to give you a more accurate picture. You’ll centralize your data for quick access and interpretation. And you’ll gain better transparency into your AP performance over time.\n","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-6518be70-c738-5b80-bfd0-fdc2ed35e41a","title":"6 Best Procurement Contract Management Practices","publishedAt":"2021-12-03T06:00:00.000Z","_createdAt":"2021-12-05T10:51:42Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/f8477bd4775b4279479316e03f97ba6167666725-3008x2000.jpg?w=3008&h=2000&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/f8477bd4775b4279479316e03f97ba6167666725-3008x2000.jpg?rect=2,0,3005,2000&w=320&h=213&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/f8477bd4775b4279479316e03f97ba6167666725-3008x2000.jpg?rect=1,0,3007,2000&w=654&h=435&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/f8477bd4775b4279479316e03f97ba6167666725-3008x2000.jpg?rect=1,0,3006,2000&w=768&h=511&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/f8477bd4775b4279479316e03f97ba6167666725-3008x2000.jpg?rect=1,0,3007,2000&w=1024&h=681&auto=format 1024w,\nhttps://cdn.sanity.io/images/55lcecww/production/f8477bd4775b4279479316e03f97ba6167666725-3008x2000.jpg?rect=0,1,3008,1999&w=1366&h=908&auto=format 1366w,\nhttps://cdn.sanity.io/images/55lcecww/production/f8477bd4775b4279479316e03f97ba6167666725-3008x2000.jpg?w=1600&h=1064&auto=format 1600w,\nhttps://cdn.sanity.io/images/55lcecww/production/f8477bd4775b4279479316e03f97ba6167666725-3008x2000.jpg?rect=1,0,3007,2000&w=1920&h=1277&auto=format 1920w,\nhttps://cdn.sanity.io/images/55lcecww/production/f8477bd4775b4279479316e03f97ba6167666725-3008x2000.jpg?rect=1,0,3007,2000&w=2048&h=1362&auto=format 2048w,\nhttps://cdn.sanity.io/images/55lcecww/production/f8477bd4775b4279479316e03f97ba6167666725-3008x2000.jpg?w=2560&h=1702&auto=format 2560w,\nhttps://cdn.sanity.io/images/55lcecww/production/f8477bd4775b4279479316e03f97ba6167666725-3008x2000.jpg?w=3008&h=2000&auto=format 3008w","sizes":"(min-width: 3008px) 3008px, 100vw"}},"layout":"constrained","width":3008,"height":2000,"placeholder":{"fallback":"data:image/jpeg;base64,/9j/2wBDAAYEBQYFBAYGBQYHBwYIChAKCgkJChQODwwQFxQYGBcUFhYaHSUfGhsjHBYWICwgIyYnKSopGR8tMC0oMCUoKSj/2wBDAQcHBwoIChMKChMoGhYaKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCj/wAARCAANABQDASIAAhEBAxEB/8QAGAAAAwEBAAAAAAAAAAAAAAAAAAYIAQf/xAAlEAABAwQBAwUBAAAAAAAAAAACAQMEAAUGESEHEoETFCIxMlH/xAAWAQEBAQAAAAAAAAAAAAAAAAAEAQL/xAAcEQEAAgEFAAAAAAAAAAAAAAACAAFRAxESExT/2gAMAwEAAhEDEQA/AO3W9xmQwD0ZwHWjTYmC7RfNIvVG7ez7I0iOsm3ODp5NfEamXp91LyHEnmm4UlXofdzGeXY+P5Vh28Y+S4vGmS4wCklpDJr9JzUZ5nab0nQVK6iPbMks0WAwzF9NpkRTsAPpEorbnglrKWSsq4yGuABeEoo/QsxfpGJ//9k="}}}},"slug":{"current":"procurement-contract-management-best-practices"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"[Your procurement process](https://www.jotform.com/procurement-process/) is the strategic backbone of your organization. By optimizing your spending and ensuring the stability of your supply chain, you can secure the resources you need to stay ahead of your competition. Effective procurement contract management is key to making that happen. \n\nFollow these 6 best practices to get your organization there. \n\n## What Is Procurement Contract Management? \nProcurement contract management is the process of ensuring all parties follow through on the established guidelines, providing the level of support, service, and product agreed upon in the contract. \n\nEffective procurement contract management involves maximizing the value of the contract for the organization while [minimizing the risks involved](https://quandarycg.com/procurement-risks-and-how-to-navigate-them/). It also involves identifying cost-saving opportunities and brokering any changes to the contract as the relationship evolves.\n\n## What Are Procurement Contract Management Best Practices?\nIf you don’t take advantage of your procurement contracts and manage them properly, you’re losing value. By following best practices, you can streamline your procurement contract management process and secure more value for your organization. \n\nHere’s what you need to do. \n\n### 1. Focus on Procurement Contract Management From the Start\nFocusing on procurement contract management after you’ve drawn up the contract is too late. Once you’ve drawn up a contract, it becomes [increasingly difficult to make changes](https://blog.juro.com/contract-amendment).\n\nInstead, it should be in your mind at the start of the procurement process. After all, this is where you have the most control. \n\nOnce you identify a need for your organization, think about the contract and what needs to be included in that contract to ensure your business gets the most value out of the relationship.\n\n### 2. Engage with Key Stakeholders\nDrafting a contract without the insight of the relevant parties involved is a recipe for disaster. The last thing you want to do is to [establish a vendor relationship](https://quandarycg.com/vendor-relationship-management/) that doesn’t have the needs of your team in mind. Instead, sit down with the key stakeholders to better understand their needs before drafting up any contract.\n\n### 3. Optimize Procurement Contracts Digitally\nAs an organization, you should clearly define and detail both parameters and goals for your procurement contracts in a digital template. This makes finding, reviewing, sending, and adjusting contracts much easier. Rather than drafting up a new contract each time, you can copy/paste templates that are in alignment with your company’s needs.\n\nDigital contracts also [provide extra security](https://parleypro.com/blog/reasons-to-switch-to-electronic-contract-signing/) and streamline the execution of agreements. Paper documents can take days or weeks to get signed. There’s also a greater chance that unauthorized users can access the documents and compromise your security. \n\n### 4. Remove Manual Processes\nTracking data across multiple spreadsheets, siloed systems, and disparate applications manually [increases the risk of human error](https://www.automation.com/en-us/articles/2019/human-error-how-automation-can-mitigate-operationa) and wastes time. \n\nYour team can overlook contract renewals, for example, and miss the window for negotiating better terms. Worse, you could end up stuck in a contract with unfavorable pricing for the long term.\n\nBy deploying [CLM (Contract Lifecycle Management) Software](https://quandarycg.com/procurement-automation-services/), you can avoid the pitfalls found in manual tasks by [automating many of the processes](https://quandarycg.com/benefits-of-procurement-automation/). These platforms make it easy to collect supplier data and monitor contract terms. \n\nAdditionally, you’ll get real-time insights into vendor performance so you can proactively follow up with those who are underperforming.\n\n### 5. Evaluate Market and Purchasing Trends\n[Analyzing customer forecasting data](https://www.indeed.com/career-advice/career-development/what-is-trend-forecasting) and market trends is critical to determining your future procurement needs. And the last thing your organization wants is to be stuck in a contract for the long-term with a supplier that no longer supports your business goals. Instead, use market insights to forecast your needs and adjust your procurement contracts accordingly.\n\n### 6. Renegotiate for Better Terms at Renewal\nIf you fail to revisit a contract before it expires or auto-renews, you could miss out on favorable terms. This could [cost you additional savings](https://salesintel.io/blog/why-auto-renewal-clauses-suck-and-how-to-avoid-them/) and allow your supplier to deprioritize your account. Instead, you need to revisit contracts before they expire and use vendor performance data alongside competitor analysis to renegotiate better contract terms. \n\n## Procurement Contract Management Goals\nEffective procurement contract management strengthens the relationship between your business and vendors. It reduces risks to your organization. And it helps guide any challenges to a speedy and agreeable resolution.\n\nAdditionally, procurement contract management ensures that your organization receives the agreed on quality and number of products or types of services for the right price. And it enforces established delivery and payment terms.\n\nInternally, procurement contract management should be cost-effective. If your organization spends too much time and money chasing down contracts and sorting through terms, you’ll miss out on [additional cost savings](https://quandarycg.com/procurement-cost-savings/).\n\n## Benefits of Effective Procurement Contract Management\nEffective contract management reduces spending, risk, and waste while strengthening relationships between a business and its suppliers. It also helps organizations identify their needs and [adjust their procurement strategy](https://quandarycg.com/how-to-design-a-fool-proof-procurement-strategy/) to fulfill them. Most importantly, it secures your supply chain so your business can adjust to market disruptions and remain competitive.\n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.\n","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-855f08ac-3b9f-586a-9b13-d4f61e0a250f","title":"How to Identify (and Significantly Reduce) Procurement Costs","publishedAt":"2021-12-04T15:00:00.000Z","_createdAt":"2021-12-05T16:34:40Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/b2aa8511df183a94ddeaf6dacfd0242762e70284-885x590.jpg?w=885&h=590&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/b2aa8511df183a94ddeaf6dacfd0242762e70284-885x590.jpg?rect=0,1,885,589&w=320&h=213&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/b2aa8511df183a94ddeaf6dacfd0242762e70284-885x590.jpg?w=654&h=436&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/b2aa8511df183a94ddeaf6dacfd0242762e70284-885x590.jpg?w=768&h=512&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/b2aa8511df183a94ddeaf6dacfd0242762e70284-885x590.jpg?w=885&h=590&auto=format 885w","sizes":"(min-width: 885px) 885px, 100vw"}},"layout":"constrained","width":885,"height":590,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"how-to-identify-and-significantly-reduce-procurement-costs"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"Procurement costs are the expenses your organization incurs to provide the goods or services your customers expect. There are numerous procurement costs you need to monitor. Evaluating these costs against your budget for procurement is an essential KPI that indicates just how effective your [procurement management strategies](https://quandarycg.com/the-procurement-management-strategic-playbook) are. \n\nReducing procurement costs isn’t just about slashing expenses. \n\nInstead, it’s about evaluating the purchases in your organization against alternatives. It’s also about using data to rethink how your business conducts improvement. Finally, it’s about building smarter, better relationships with vendors who will help you grow your business.\n\n**Done correctly, you’ll reduce your expenses and secure your bottom line.**\n\nThis post will show you exactly how to make that happen.\n\n## Direct vs. Indirect Procurement Costs\nThere are two different kinds of procurement costs: direct costs and indirect costs. **Direct procurement costs** cover the costs related to the product and sale of goods or the labor costs for contractors. **Indirect procurement costs** involve expenses that aren’t related to product production but are necessary for the business to function. \n\n- **Examples of Direct Procurement Costs:** Raw materials, manufacturing, transportation, and storing of products. Hourly labor costs for contractors.\n- **Examples of Indirect Procurement Costs:** Pens, paper, marketing collateral, rent, IT services, employee travel, and capital expenditures.\n\nWhen it comes to budgeting, most companies will have separate budgets and processes for managing both indirect and direct procurement costs. \n\n## Types of Procurement Expenses\nIn most businesses, there are 7 different types of procurement-related expenses. To effectively manage your procurement costs, you need to take all these expenses into account. Failing to do so can lead to significant budget miscalculations that can [negatively impact your business](https://insightspotter.com/what-happens-when-a-project-goes-over-budget/).\n\n1. **Base Cost:** The total cost per unit of a product. \n2. **Transportation Cost:** The cost associated with acquiring new products.\n3. **Closing Cost:** Any costs associated with buying and selling inventory.\n4. **Taxes and Duties:** Any taxes you have to pay on your purchase orders.\n5. **Negotiation Costs:** Cost for researching, evaluating, and negotiating contracts with vendors.\n6. **Inventory Costs:** The cost of storing and managing inventory. \n7. **Contract Management Costs:** Costs associated with evaluating vendor performance, QA, [enforcing contracts](https://quandarycg.com/procurement-contract-management-best-practices/), arbitrating disputes, and renegotiating terms.\n\n![](https://images.pexels.com/photos/3637786/pexels-photo-3637786.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n\n## 10 Ways to Reduce Procurement Costs\n[Cost savings](https://quandarycg.com/procurement-cost-savings/) is a key component to effectively managing your procurement process. Keep in mind that it shouldn’t be your overall goal as businesses now know [the value of thinking about procurement more strategically](https://hbr.org/2020/06/why-investing-in-procurement-makes-organizations-more-resilient). Still, if you overspend on your budget, you could end up running out of money before projects are complete. And this could put your business in danger. \n\nTo help ensure your procurement process stays lean and supports your bottom line, implement these 10 strategies. They’ll help you quickly identify the financial hemorrhages in your procurement process and reduce that waste before it permanently damages your organization.\n\n### 1. Automate Procurement Processes\nNearly every strategy pointed out below is an offshoot of this centralized theme: replacing manual procurement processes with automation. Automation streamlines and secures workflows. [Integrated systems](https://quandarycg.com/benefits-of-systems-integration/) share data, giving you real-time, accurate insights. And you’ll drastically reduce labor costs, errors, and waste with a more transparent procurement process. \n\nWithout automation, many of the processes described in this list are _not_ possible or will simply fall flat. You can only shave off costs so much if your organization still [relies on spreadsheets](https://quandarycg.com/warning-spreadsheets-will-ruin-your-business/) for data processing and storage. \n\nThe [benefits of automating your procurement](https://quandarycg.com/benefits-of-procurement-automation/) are numerous. If you want to experience those benefits, you need to invest in better systems. \n\n### 2. Reduce and Eliminate Tail Spend\nRoughly 80% of a company’s purchases make up 20% of its spend volume. These purchases are known as [tail spend](https://www.gep.com/knowledge-bank/glossary/what-is-tail-spend). It can cover a variety of purchases, from [maverick spend](https://kissflow.com/procurement/ways-to-control-your-maverick-spending/) to one-off purchases for services. \n\nTail spend tends to be high in organizations that lack visibility into their spending. Without that visibility, they’re unable to combine purchases or secure better deals with vendors. Over time, these expenses add up. \n\nProcurement automation reduces tail spend by increasing visibility into your supply chain, better tracking purchases, and putting systems in place to block unapproved purchases.\n\n### 3. Navigate Taxes and Duties\nLuckily, there are [a few ways you can lower the taxes](https://epsnews.com/2019/07/30/7-strategies-for-mitigating-the-impact-of-tariffs/) and duties associated with your procurement costs. One way is to try and source locally to avoid VAT or GST, if that’s an option. You can also work with states or countries that have lower sales tax. \n\nHowever, if the goods or services you need are location-dependent, you’ll need to pay the required duties and taxes for procuring materials and services. Still, it’s worth evaluating your options by comparing vendors.\n\n### 4. Compare Vendors\nReduce costs by shopping around and comparing vendors. Cost reduction should not take priority over [value generation](https://www.mckinsey.com/business-functions/operations/our-insights/now-is-the-time-for-procurement-to-lead-value-capture). Instead, you’re looking for a balance between the quality of your goods and services against your overall cost. \n\nThere are a lot of ways you can work with a vendor to reduce costs. You should evaluate the types of materials, product design, and packaging. You can also evaluate the quality of each product. You’re looking for a balance between quality and cost. Additionally, bulk discounts can save you money on large orders. \n\nIf you’re working with vendors for services, you should weigh efficiency against cost. A vendor with a lower hourly rate for services may take longer to complete tasks or the quality of their work may require additional visits. In the end, a cheaper contractor could end up costing you more in the long run.\n\n### 5. Evaluate Transportation Costs\nYou need to get your raw materials and products to where they need to go. But, if you’re not evaluating your logistics, you may end up paying more. Look to see if you can consolidate orders and deliveries. Try [alternative transportation methods](https://www.purolatorinternational.com/types-of-transportation-in-logistics/). And explore different types of warehousing to keep your goods closer to your customers, reducing transportation expenses.\n\n![](https://images.pexels.com/photos/2199293/pexels-photo-2199293.jpeg?auto=compress&cs=tinysrgb&dpr=2&w=500)\n\n### 6. Reduce Overhead\nReconsider the facilities your business uses to build and house products. Look for cheaper options that provide strategical advantages along with reduced costs. Evaluate the types of machinery you use to build products. Consider the cost of repairing against replacing. Ask yourself if you can purchase better quality machines to save costs in the long run. \n\n[Outsourcing production](https://smallbusiness.chron.com/advantages-disadvantages-outsourcing-production-18244.html) could also be an option if the vendor provides a similar quality product at a reduced cost.\n\nIf your business rents office space, consider going remote. After the pandemic, more companies are leaning toward remote work to [reduce costs while increasing productivity](https://www.wework.com/ideas/professional-development/management-leadership/benefits-of-working-remotely). Ask yourself, \"Does the office space add irreplaceable value? Or can we conduct operations remotely?\" \n\nCould your organization move to a smaller or shared office space? Abandoned dated beliefs. You don't \"need\" an office. It does not define your business. Instead, look at whether or not it facilitates or adds value to your day-to-day operations.\n\n### 7. Review Inventory\nEvery item sitting in your warehouse costs your business money. It also runs the risk of becoming obsolete. Conversely, not having enough inventory on hand can cause lasting [supply chain disruptions](https://quandarycg.com/overcoming-supply-chain-disruption/) and damage your brand. Evaluating your inventory against current market and consumer trends is key to ensuring you have enough stock on hand without burning through your budget to store unnecessary goods needlessly. \n\n### 8. Conduct Risk Management\nWorking with ethical vendors, transitioning to sustainable procurement practices, and reducing maverick spend are all great ways to reduce risk to your business. But they’re not the only [risks to your procurement process](https://quandarycg.com/procurement-risks-and-how-to-navigate-them/). You need to regularly evaluate the resilience of your supply chain by conducting risk analysis to find potential weak points. \n\nInspect your vendor relationships. Make sure you’re not over-reliant on a particular supplier. Evaluate your company-wide spend and leverage it to secure supplier relationships that benefit your business. \n\nAutomating your procurement process helps centralize and secure data while eliminating human errors reduces potential threats to your bottom line. You’ll also gain greater insights into factors (natural disasters, political instability, etc.) that might impact your sourcing. With those insights, you can adjust your supply chain proactively, avoiding potentially catastrophic costs.\n\n### 9. Minimize Administrative Costs\nIf you have to hunt down paper invoices, conduct manual approvals, or sort through a filing cabinet to find vendor contracts, you’re [wasting valuable time](https://resources.m-files.com/blog/how-long-does-it-actually-take-to-find-a-document-dissecting-the-many-stats-out-there) and money. Automating your procurement processes will centralize that data and make it easier for you to track and store the files you need to streamline procurement management tasks. \n\n### 10. Streamline Negotiations\nNegotiation is part of the procurement process. It is not a zero-sum game, though. Instead, you need to be prepared to work with suppliers to [build mutually beneficial relationships](https://quandarycg.com/vendor-relationship-management/). Still, it’s hard to get the leverage you need in those negotiations without insights into your supply chain, specifically your vendors and their competition.\n\nAn automated vendor management system can track and store your vendor data. If it has a self-service portal, your vendors can upload their details, saving you time. When it comes time to evaluate your vendor contracts, you can quickly review their performance and pricing before comparing them to competitors in the platform. \n\nThese insights will help you get the best deal when it comes time to renegotiate or adjust your contracts.\n\n![](https://images.pexels.com/photos/6457515/pexels-photo-6457515.jpeg?auto=compress&cs=tinysrgb&dpr=2&w=500)\n\n### 11. Continuously Optimize Procurement Cost\nMarkets change constantly. Customer demands ebb and flow over time. [Globalization adds complexities](https://www.inboundlogistics.com/cms/article/main-sources-of-supply-chain-complexity/) as easily as it provides simple solutions. The key to staying ahead of it all and minimizing your procurement costs is to continuously analyze your purchases against your companies current and future needs.\n\nThe challenge with continuously improving your procurement costs rests in how complex supply chains have become. And as your business grows, it will only become increasingly complex. \n\nThis is perhaps the greatest value add for procurement automation. By integrating your systems, cleaning your data, and storing it in a secure, centralized location, you’ll have the real-time insights you need to evaluate your supply chain at a glance. \n\nAs a result, you can quickly adjust to shifting conditions and demands, keeping procurement lean in your organization.\n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.\n","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-2eeabfd2-7e90-551e-83c6-a45a4c0f1e40","title":"9 Essential Procurement Trends to Embrace in 2023","publishedAt":"2021-12-07T12:00:02.643Z","_createdAt":"2021-12-07T12:36:48Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/310e85686fc08c42a24a7abb33920ce9f8f9854d-1999x1333.jpg?w=1999&h=1333&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/310e85686fc08c42a24a7abb33920ce9f8f9854d-1999x1333.jpg?rect=0,2,1999,1331&w=320&h=213&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/310e85686fc08c42a24a7abb33920ce9f8f9854d-1999x1333.jpg?w=654&h=436&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/310e85686fc08c42a24a7abb33920ce9f8f9854d-1999x1333.jpg?w=768&h=512&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/310e85686fc08c42a24a7abb33920ce9f8f9854d-1999x1333.jpg?w=1024&h=683&auto=format 1024w,\nhttps://cdn.sanity.io/images/55lcecww/production/310e85686fc08c42a24a7abb33920ce9f8f9854d-1999x1333.jpg?w=1366&h=911&auto=format 1366w,\nhttps://cdn.sanity.io/images/55lcecww/production/310e85686fc08c42a24a7abb33920ce9f8f9854d-1999x1333.jpg?w=1600&h=1067&auto=format 1600w,\nhttps://cdn.sanity.io/images/55lcecww/production/310e85686fc08c42a24a7abb33920ce9f8f9854d-1999x1333.jpg?w=1920&h=1280&auto=format 1920w,\nhttps://cdn.sanity.io/images/55lcecww/production/310e85686fc08c42a24a7abb33920ce9f8f9854d-1999x1333.jpg?w=1999&h=1333&auto=format 1999w","sizes":"(min-width: 1999px) 1999px, 100vw"}},"layout":"constrained","width":1999,"height":1333,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"procurement-trends-to-embrace"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"Disruption is constant. Change is rapid. And supply chains are more complex and interconnected than ever. If 2021 has proven anything, it’s just how interconnected businesses are...and [how weak supply chains are](https://www.whitehouse.gov/cea/written-materials/2021/06/17/why-the-pandemic-has-disrupted-supply-chains/). The key to transforming your procurement process into a strategic asset is to evaluate current trends and [build a strategy](https://quandarycg.com/how-to-design-a-fool-proof-procurement-strategy/) that embraces change.\n\nNext year will be a challenging year for organizations. Predictions have [supply chain disruptions continuing](https://quandarycg.com/overcoming-supply-chain-disruption/) well into the next year. The impact of COVID will continue. And businesses will need to deal with market instability for years to come.\n\nBy reviewing these 9 procurement trends and incorporating them into your [procurement management playbook](https://quandarycg.com/the-procurement-management-strategic-playbook), you can build a stronger, more agile supply chain. \n\nWhat’s more, you’ll give your business a competitive advantage unlike any other.\n\n## 1. Leadership Will Prioritize Strategy Over Cost-Cutting\nFor years, organizations have seen [cost reduction](https://quandarycg.com/how-to-cut-costs-while-increasing-efficiency-in-your-business/) as the main driver of procurement practices. However, this attitude has changed. Instead, more leaders now view procurement as a strategic process that should directly support business objectives. \n\nMoving into 2022, organizations will expand their internal relationships with procurement officers to develop dynamic strategies that support short and long-term goals. They’ll be turning to their procurement department for data insights and market forecasting to guide key decision-making processes that support these goals.\n\n## 2. Supply Chain Resilience Will Be Key\nSupply chain disruption continues to lead the headlines in 2021. And its impact will [continue well into 2022](https://www.bloomberg.com/news/articles/2021-11-09/u-s-supply-chain-hurdles-to-last-well-into-2022-raimondo-says). \n\nThese disruptions exposed critical weak points in the supply chains of many organizations. As companies struggle with delayed deliveries, inventory issues, and rising costs, they’ll look for ways to strengthen their sourcing. \n\nData will be a key driver in the decision-making process as organizations will look for guidance on how to develop a more resilient and agile supply chain. You can expect organizations to make pivotal, permanent shifts from previous procurement practices. \n\nThey’ll be less likely to over-rely on certain vendors. Logistics will be heavily scrutinized to avoid shipping delays. Inventory parameters will be adjusted. And businesses will prioritize local vendors to reduce risk.\n\n![](https://images.pexels.com/photos/799091/pexels-photo-799091.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n\n## 3. Procurement Processes to See an Increase in Automation\nMore businesses understand the value of automation and will look to streamline procurement processes. They know that any kind of significant, lasting change requires key data insights. Insights that are impossible to get without automation. \n\nProcurement software automates away the menial tasks, giving teams more time to think strategically. This is vital as it transitions procurement teams away from putting out fires and toward thinking more strategically. Best of all, it gives your team the data insights they need to make informed decisions.\n\nProcurement automation platforms [provide clear benefits](https://quandarycg.com/benefits-of-procurement-automation/):\n- Business process automation can rapidly speed up data processing with digital templates, streamlined processing, and data management.\n- [Robotics process automation](https://enterprisersproject.com/article/2019/5/rpa-robotic-process-automation-how-explain) can automate data entry, reducing menial tasks and human errors.\n- [AI-driven procurement applications](https://www2.deloitte.com/content/dam/Deloitte/ca/Documents/deloitte-analytics/ca-en-omniaai-supplychain-pov-aoda.pdf) assisted by machine learning can provide better forecasting while helping businesses adjust rapidly to shifting market conditions.\n\nSimultaneously, procurement automation lower costs, risk, and waste. As a result, organizations have more room in their bottom line to navigate challenging times and come up with lasting solutions to supply chain instabilities.\n\n## 4. Businesses Will Leverage Low Code Applications to Reduct Costs\nBusinesses are always working against budget restrictions to manage growth effectively. Rather than choosing between staff members and developing critical solutions, organizations are turning to [low code for lean application development](https://quandarycg.com/low-code-guide/). \n\nThese cloud-based, SaaS platforms make application development fast and easy. Costs scale with use, meaning that businesses of any size can build enterprise-level applications without the enterprise price tag.\n\nAs a result, more companies can build the custom applications and integrations they need to streamline purchasing, sourcing, and supply chain management. Plus, they can collect the real-time data insights needed to inform business decisions at every level.\n\n## 5. Customers Still Expect Ethical and Sustainable Sourcing\nDespite the pandemic, customers still value sustainable and ethical sourcing practices. Businesses will continue to evaluate [ESG ratings](https://www.fool.com/investing/stock-market/types-of-stocks/esg-investing/esg-rating/#:~:text=An%20ESG%20rating%20measures%20a,board%20independence%20%E2%80%94%20have%20financial%20implications.) as part of the sustainable sourcing strategy. However, companies will need to do more in the future. \n\nCustomers and employees alike will continue to [expect greater efforts](https://www.weforum.org/agenda/2021/05/eco-wakening-consumers-driving-sustainability/#:~:text=In%20one%20survey%2C%2066%25%20of,they%20want%20eco%2Dfriendly%20products.) from larger organizations with the resources to make a difference. Businesses should aim to go above and beyond expectations by working with suppliers to collaborate on social, environmental, and economic initiatives that make a positive impact. \n\nOrganizations that fail to do so will face increasing scrutiny, putting their brand (and bottom line) at risk.\n\n## 6. Vendor Management Will Becoming Increasingly Important \nBusinesses will look to work more directly with their suppliers, building strategic partnerships that are mutually beneficial and long-term. Collaboration with vendors will be key to keeping supply chains more resilient. \n\nCompanies will need to be more flexible with payment and delivery as disruption continues well into the next year. At the same time, organizations should work with vendors to align their goals and reduce friction. Your organization should develop the infrastructure needed to [build lasting relationships with vendors](https://quandarycg.com/vendor-relationship-management/) by minimizing miscommunication and streamlining purchasing.\n\n![](https://images.pexels.com/photos/3810796/pexels-photo-3810796.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n\nTo make that happen, organizations will need to leverage technology like self-service vendor portals and procure-to-pay processing.\n\n**Online vendor portals** streamline communication by requiring suppliers to keep their details up-to-date. Discussions are easier to navigate than various email threads. And teams can quickly evaluate vendor performance data for [better contract management](https://quandarycg.com/procurement-contract-management-best-practices/). \n\n**Procure-to-pay processing** automates the entire P2P process. As a result, approvals, payments, and QA are streamlined. [Faster payments](https://quandarycg.com/how-invoice-automation-works/) keep your suppliers happy while streamlining your QA process ensures your vendors are fulfilling their contracts. The end result transforms your procurement process into a systems investment with a strong ROI.\n\n## 7. Procurement’s Role in Organizations Will Evolve\nLeadership will work more closely with procurement leaders to uncover strategic insights and increase supply chain stability. They’ll understand now more than ever the importance of having a stable, agile procurement process. Organizations struggling with resources will lean even more heavily on companies to find ways to get more out of their budgets.\n\nProcurement leaders need to be prepared to clearly illustrate their data-driven strategies through clear dashboarding. Data should be clear and presented in real-time so procurement professionals can work closely with other leaders to build a strategy for overcoming current and new supply chain disruptions. \n\n![](https://images.pexels.com/photos/260024/pexels-photo-260024.jpeg?auto=compress&cs=tinysrgb&dpr=2&w=500)\n\n## 8. Risk Management Will Become More Commonplace\nThe [threats to your supply chain](https://quandarycg.com/procurement-risks-and-how-to-navigate-them/) continue to grow. Data breaches, unethical sourcing practices, vendors consolidation, unstable logistics, fraud, political instability, sanctions, natural disasters, the list of potential impacts on your supply chain are numerous. \n\nOrganizations will need to regularly assess risk to their supply chain. And they’ll look to develop strategies to reduce, remove, or manage these risks. Businesses will need the tools necessary to dive into deeper levels of their supply chain to ensure risk management goes beyond immediate suppliers.\n\nCompanies will also need the time and resources necessary to regularly carry out risk management. As a result, they will begin to restructure how they manage their procurement processes to the necessary time and resources to support these initiatives.\n\n## 9. Spend Optimization Will Rely Heavily on Automation \n[Spend optimization](https://quandarycg.com/procurement-cost-savings/), while not the main priority of procurement, will still continue to be a vital component moving forward. Automating the procurement process is critical to reducing spend. \n\nWithout automated processes, your organization will be [stuck using spreadsheets](https://quandarycg.com/warning-spreadsheets-will-ruin-your-business/) and manual processes to conduct procurement processes. Cost savings in these instances will be minimal. You'll also miss out on spend visibility, leaving your budget susceptible to increase tail and maverick spend, costly errors, and unnecessarily high labor costs.\n\nMore organizations understand that transitioning to a digital solution is the only way to reduce spending in a meaningful way. And they will look for procurement solutions that help facilitate that process. \n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-fe179e1f-4027-56ce-9592-d34148a175c1","title":"Why You Desperately Need to Automate Purchasing in Your Business","publishedAt":"2021-12-28T14:30:00.000Z","_createdAt":"2021-12-29T10:40:00Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/c3bbf42085a88bf169f92ab1c31f88c5bdca9423-884x590.jpg?w=884&h=590&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/c3bbf42085a88bf169f92ab1c31f88c5bdca9423-884x590.jpg?rect=1,0,882,590&w=320&h=214&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/c3bbf42085a88bf169f92ab1c31f88c5bdca9423-884x590.jpg?rect=0,1,884,589&w=654&h=436&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/c3bbf42085a88bf169f92ab1c31f88c5bdca9423-884x590.jpg?rect=1,0,883,590&w=768&h=513&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/c3bbf42085a88bf169f92ab1c31f88c5bdca9423-884x590.jpg?w=884&h=590&auto=format 884w","sizes":"(min-width: 884px) 884px, 100vw"}},"layout":"constrained","width":884,"height":590,"placeholder":{"fallback":"data:image/jpeg;base64,/9j/2wBDAAYEBQYFBAYGBQYHBwYIChAKCgkJChQODwwQFxQYGBcUFhYaHSUfGhsjHBYWICwgIyYnKSopGR8tMC0oMCUoKSj/2wBDAQcHBwoIChMKChMoGhYaKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCj/wAARCAANABQDASIAAhEBAxEB/8QAGAAAAwEBAAAAAAAAAAAAAAAAAAYHBQj/xAAkEAABAwMDBAMAAAAAAAAAAAABAgMEAAURBhIhBxMUQSJxgf/EABUBAQEAAAAAAAAAAAAAAAAAAAED/8QAFxEBAQEBAAAAAAAAAAAAAAAAAQAREv/aAAwDAQACEQMRAD8A6BROjPNqS3OaUojGUKGfulq2QLPbXJBlOvmYtRLj7izlwejmsPTPTaz2dSnWXJTqx7ccJFPXZbDaRsBSRjaeaqhTFp9qiFcpl0Ltily/DCAkfPjdznGfyiqB47aeABiinI6v/9k="}}}},"slug":{"current":"automate-purchasing-in-your-business"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"Automating your purchasing process is a quick way to [significantly reduce costs](https://quandarycg.com/how-to-identify-and-significantly-reduce-procurement-costs/) in your procurement process. But it isn’t always easy. Growing companies tend to optimize revenue-generating channels before streamlining internal processes to reduce costs. Still, it doesn’t have to be that way. You can automate your purchasing process and grow your business at the same time.\n\nHere’s how. \n\n## The Benefits of Automating Your Purchasing Process\nEvery company has a purchasing process. And they’re all fairly similar. Your team discovers a need, fills out a purchase requisition, management approves, and sends a purchase order (PO) to a vendor. After, your team works with the vendor to ensure delivery, pay the invoices, and file the data. \n\nIt’s a straightforward process that gets exponentially more complicated depending on the size of the company. In larger organizations, a simple requisition can slip by unnoticed, contributing to unapproved spending. Or, it can get caught up in a web of complex approval processes. \n\n**Neither situation is good for your organization.**\n\nAnd if your business still uses paper processes to manage its purchasing process, then you’re far behind the times. Even if you’ve digitized some aspects of your business, if you still rely on [spreadsheets and people to track purchasing data](https://blog.kintone.com/business-with-heart/the-hidden-risks-of-using-excel-to-manage-your-projects), you’re wasting money. And putting your organization at unnecessary risk...\n\nThe benefits of automation are proven and clear. \n\n### Increased Accuracy and Productivity\nBy reducing the number of people working in a process, you reduce the cost (in labor and mistakes) and the risks associated with manual data entry. Purchase automation software can process data faster and organize it better than humans. \n\nThis means you can process more purchase requisitions, POs, and invoices without hiring more staff members.\n\n### More Stability in Your Purchasing Process\n\nBy building up an automated purchasing system that’s based on software (not people), you get a more stable system. With insights and reflection, you can better optimize that system over time.\n\nIf your system is built on people, then you will lack the clear insights and stability needed to make significant improvements over time. Additionally, [attrition can cause major instabilities](https://blog.bernieportal.com/how-does-attrition-rate-impact-your-business) in your purchasing process. \n\n### Improved Data Storage and Insights\nImagine how much more space you’ll have in your office without walls of filing cabinets filled with purchasing paperwork. \n\nPurchasing automation stores and tracks data in a centralized, accessible database. So, not only will you save on paper and ink, you’ll reduce the time needed to fill out forms with prefabricated templates at your disposal. You’ll also get clear data insights into your purchasing while improving visibility into your organization’s cash flow.\n\n![](https://images.pexels.com/photos/357514/pexels-photo-357514.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n\n## What Areas of Purchasing Can You Automate?\nPurchasing automation software (or e-purchasing software) streamlines your purchasing processes. These are the key areas of your purchasing process you can target for high ROIs on your investment in better systems. \n\n**1. Purchase Requisitions:** Eliminate the back and forth and speed up processing times with triggers and guardrails for purchases. If a request is within parameters, it’s automatically approved. If not, the system flags it as an exception for review and sends reminders.\n\n**2. Purchase Orders:** PO software can collect, submit, and track essential data needed to complete each purchase. No more hunting down receipts, changes, or delays. And no more uncontrolled tail spend or [dangerous spreadsheets](https://quandarycg.com/warning-spreadsheets-will-ruin-your-business/) that reduce transparency.\n\n**3. Invoice Approvals:** [Automating your invoice processing](https://quandarycg.com/how-invoice-automation-works/) ensures your vendors are paid on time, reducing late invoices and potentially giving you access to early payment discounts. Get faster approval on invoices and pay your vendors earlier (keeping them happy). Plus, you can centralize your spending data, making audits easier on your accounting and finance teams.\n\n**4. Record-Keeping:** Speaking of audits, paper documents are a nightmare to sort through and find (especially when you need something). With purchase automation, you’ll have a secure, centralized database for all your records. Plus, your data will be accurate. \n\n**5. Vendor Management:** Self-service portals allow vendors to update their information directly. They also make it easy to communicate with your vendors without sorting through emails. That opens the door to [stronger vendor relationships](https://quandarycg.com/vendor-relationship-management/). Even better, you can track vendor performance and prices against competitors, giving you more leverage in future negotiations. \n\n**6. Contract Approval:** No more sorting through filing cabinets or random folders on your desktop to find critical contact information. Purchasing automation software empowers your procurement team with an [organized way to manage contracts](https://quandarycg.com/procurement-contract-management-best-practices/). Templates also make it easy to quickly draft new, accurate contracts that are aligned to your business needs and standards.\n\nBy automating any one (or all) of these processes, you can [free up your procurement team](https://quandarycg.com/benefits-of-procurement-automation/) to focus on more strategic work. Best of all, you’ll see a reduction in costs, errors, and risks.\n\n![](https://images.pexels.com/photos/3184325/pexels-photo-3184325.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n\n## How to Automate Purchasing in Your Business\nYou don’t have to choose between hiring more employees or betting most of your IT budget on an expensive purchasing system overhaul. In fact, you can get an incredible ROI on a much lower investment in your systems (lower than traditional application development) [with low code](https://quandarycg.com/low-code-guide/).\n\n**How to automate purchasing in your organization affordably:**\n1. Map out your existing purchasing process\n2. Audit your purchasing process \n3. Look for bottlenecks, inefficiencies, and breakdowns\n4. Use low code to build custom applications and integrations that streamline purchasing with automation\n5. Deploy and [optimize your new systems](https://quandarycg.com/key-invoice-metrics-that-matter/) with minimal interruption \n\nYou don’t need to purchase an expensive off-the-shelf solution to automate your purchasing process. And you don’t need to pour out money for expensive custom applications built from scratch. Low code gets you there faster, cheaper, and better. \n\nYes. You can have all three. \n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.\n","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-7ca7bbfe-4a2d-5dba-9e75-a5a8bc8e64e7","title":"12 Vendor Management KPIs You Need to Track","publishedAt":"2021-12-30T06:00:00.000Z","_createdAt":"2021-12-29T19:52:04Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/5236374451372eb7f91247af7c56e14172ae19f9-885x590.jpg?w=885&h=590&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/5236374451372eb7f91247af7c56e14172ae19f9-885x590.jpg?rect=0,1,885,589&w=320&h=213&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/5236374451372eb7f91247af7c56e14172ae19f9-885x590.jpg?w=654&h=436&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/5236374451372eb7f91247af7c56e14172ae19f9-885x590.jpg?w=768&h=512&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/5236374451372eb7f91247af7c56e14172ae19f9-885x590.jpg?w=885&h=590&auto=format 885w","sizes":"(min-width: 885px) 885px, 100vw"}},"layout":"constrained","width":885,"height":590,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"critical-vendor-management-kpis"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"Your supply chain vendors are critical assets that you need to grow your business. But you can’t trust every vendor to do their job independently. You need to evaluate their performance over time and ensure they’re [living up to their contracts](https://quandarycg.com/procurement-contract-management-best-practices/). Vendor management KPIs provide the guardrails you need to make that happen.\n\nWithout the data, you’re firing from the hip. \n\nThe larger your organization is, the harder it is to track vendor performance without a system in place. On the other hand, you want to make sure you’re tracking the right vendor KPIs. Otherwise, you’ll miss out on opportunities. \n\nThis guide will help you better understand vendor management key performance indicators (KPIs), empowering you to [reduce risk](https://quandarycg.com/procurement-risks-and-how-to-navigate-them/), lower cost, and gain a strategic advantage for your business.\n\n## Why It’s Important to Collect Vendor Metrics\nEstablishing a baseline with your vendors and monitoring their performance is critical to ensuring your suppliers provide the highest value at the lowest risk for your organization. And the only way to ensure that is through accurate data and reporting.\n\nOnce you establish baseline parameters for your vendors, you can hold them accountable for their performance. You can also work with them to ensure they meet or exceed expectations. \n\nThe end goal is to ensure your business needs are met while positioning both the vendor and your organization on the path to a long-lasting, [mutually beneficial relationship](https://enable.com/articles/how-to-foster-mutually-beneficial-business-relationships-with-suppliers). Vendor KPIs give you the clarity needed to find gaps and provide support, you can reach that goal.\n\n**Without clear metrics, everything falls apart.** \n\n![](https://images.unsplash.com/photo-1544717301-9cdcb1f5940f?ixlib=rb-1.2.1&ixid=MnwxMjA3fDB8MHxwaG90by1wYWdlfHx8fGVufDB8fHx8&auto=format&fit=crop&w=1470&q=80)\n\nInstead of working with your vendors using data that pinpoints problems, you’re left with fuzzy notions of performance. This can lead to complaints, frustration (from all parties), poor performance, decreased profitability, and increased customer. \n\nIn the end, everyone’s unhappy. \n \nSo, while it’s important to get what you pay for, it’s equally important to ensure the long-term profitability of your business. Measuring vendor KPIs makes that possible.\n\n## 12 Vendor Management KPIs You Need to Monitor\nThis is not a comprehensive list of all the vendor KPIs you need to monitor. However, it does provide a strong foundation for effective vendor relationship management. Ultimately, the KPIs you track will depend on your organization’s exact needs and goals. \n\n1. **Supplier Lead Time:** This is the time it takes for a vendor to ship an order after receiving an order, usually measured in days. Once they confirm availability, you track the time until you receive the goods.\n2. **Vendor Availability:** Measure your vendor’s ability to respond to emergencies by calculating the items shipped vs. items requested _OR_ services performed vs. services requested.\n3. **Compliance Rate:** Track how often your vendors meet their contract requirements. These metrics can vary from pricing to delivery times to the quality of goods and services.\n4. **Pricing and Competitiveness:** Evaluate how much your vendor charges for a product or service against competitors. You should be paying a price that’s fair market value for the quality of product and level of service you’re receiving.\n5. **Vendor Discounts:** Calculate how many discounts your organization has received from early payments, bulk orders, group orders, and goodwill gestures (after vendor errors.)\n6. **Product/Service Defect Rate:** Evaluate the quality of your supply by tracking how many failed products or services you receive against the total amount ([typically per million](https://www.isixsigma.com/dictionary/defects-per-opportunity-dpo/)). Categorizing by the type of defects can help drive improvements. \n7. **Order Accuracy:** Inaccurate orders drive up costs and cause slowdowns. Evaluate vendors based on the number of complete, accurate orders against total orders.\n8. **Order Capacity:** Rate the number of times your vendor met demand against the total number of orders to see if they have the capacity to meet your growing needs. \n9. **Return on Investment (ROI):** There are [many ways to review vendor ROI](https://quantivate.com/blog/vendor-management-change-the-performance-scale/): cost savings vs. budget, increases in customers, customer satisfaction, efficiencies, compliance goals, and risk mitigation.\n10. **Customer Service:** Track and score how well your suppliers manage any complaints or issues your team has with their products or services. You should also evaluate your team's attitude toward your vendor to see if [you're a bad customer](https://money.usnews.com/money/personal-finance/articles/2014/12/19/5-signs-youre-a-bad-customer).\n11. **Innovation:** Analyze the additional value working with a particular vendor provides in addition to the standard service or products they provide. You can also use this metric to inspire vendors to find affordable solutions to keep costs low and meet business goals. \n12. **Risk Assessment:** Your suppliers should provide credentials and other evidence proving they are financially stable, diverse, and practice both ethical and sustainable sourcing. Plus, they should have the infrastructure needed (if required) to keep any sensitive customer data secure.\n\n## Exceptions to Vendor KPIs You Should Consider\nNothing is black and white. Throughout the course of your vendor relationship, situations will arise that impact your vendor’s ability to perform within established parameters. You need to account for and track these circumstances to avoid damaging a potentially healthy vendor relationship. \n\nDelays are either justifiable, non-justifiable, or a result of your organization. \n\n![](https://images.unsplash.com/photo-1457327289196-f38b88d97147?ixlib=rb-1.2.1&ixid=MnwxMjA3fDB8MHxwaG90by1wYWdlfHx8fGVufDB8fHx8&auto=format&fit=crop&w=1472&q=80)\n\n- **Justifiable delays:** Natural disasters, political unrest, and [unforeseen circumstances](https://quandarycg.com/overcoming-supply-chain-disruption/) that interfered with the vendor’s ability to deliver within their established contract guidelines.\n- **Organizational delays:** Scope creeps, changing parameters of your business, or [a shift in customer demand/needs](https://businessrealities.eiu.com/in-brief-shifting-customer-demands) could cause slowdowns that wouldn’t be your vendor’s fault. \n- **Non-Justifiable:** Procrastination, miscalculating scope, inability to meet expectations due to a lack of facilities or skill sets would be the fault of your vendor.\n\nTo accurately measure your vendor’s KPIs, you need to adjust your scoring to account for instances where your vendor was not at fault.\n\n## How to Track and Rate Your Vendors\nYou need visibility into your vendor relationships. Without it, you’re left “trusting” your vendor to follow through on your contract. And that’s too risky for _any_ business. \n\nHowever, you don’t want to measure the wrong data points. And you don’t want to measure too many data points, either. The key is knowing how to weigh your KPIs and score them in a way that accurately reflects how effective your suppliers are. \n\nThe key to making this happen is to focus and review your contracts. This is where you’ll find the parameters that outline your vendor relationships. You want to take those guardrails and compare them against your business goals and needs. \n\nFor older vendor relationships, this can help you find gaps you can revisit during your renewal or next contract negotiation. For prospective vendors, you should use these frameworks to create a contract that supports your organizations’ exact needs.\n\nOnce you know what metrics you both can and should be tracking, you need to collect vendor data in a system that allows you to quickly evaluate supplier performance. For organizations without a [vendor management system](https://www.investopedia.com/best-vendor-management-systems-5115463), this tends to be a spreadsheet. But those can be [very problematic and dangerous](https://quandarycg.com/warning-spreadsheets-will-ruin-your-business/) for your organization. \n\nThe simple alternative is to automate the process with a vendor management system.\n\n![](https://images.unsplash.com/photo-1633613286991-611fe299c4be?ixlib=rb-1.2.1&ixid=MnwxMjA3fDB8MHxzZWFyY2h8MXx8cmF0aW5nfGVufDB8fDB8fA%3D%3D&auto=format&fit=crop&w=800&q=60) \n\n## Reviewing Vendor KPIs with Automation\nIt’s important to evaluate your vendor performance regularly. It ensures that you’re getting what you pay for and reduces risk to your organization. Plus, you can leverage strong vendor relationships to make your business more competitive. \n\n_The problem is that it isn’t always easy to find the time to do that…_\n\nIf you don’t use a vendor management system or you’re tracking vendor performance through spreadsheets and a paper-based review system, the process can be excruciatingly time-consuming. The solution is to streamline your vendor review process with [automation](https://quandarycg.com/benefits-of-procurement-automation/). \n\nAnd you can do this fast and affordable using [low code](https://quandarycg.com/low-code-guide/). With low code, you can rapidly build the custom applications you need to manage your vendors with ease.\n\nUsing low code, you can build a self-service vendor portal and vendor management system that allows you to effortlessly track vendor performance. Vendors can keep their details up-to-date, submit invoices, and leave feedback or communication in the vendor portal. And you can track that data along with your vendor KPIs in a vendor management system.\n\nIn the end, you’ll have real-time data on your suppliers that you can use to make your procurement process [more efficient and strategic](https://quandarycg.com/what-is-strategic-procurement/). And while you’ll certainly reduce costs, you’ll also get the insights you need to keep your business agile while reducing risk. \n\nCheck out how we’ve helped our clients build similar tools by reviewing our case studies below. \n","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-01ff0fda-48e5-5f5f-bcb8-f532f6461341","title":"11 Supplier Management Best Practices For Lasting Success","publishedAt":"2022-02-02T17:00:00.000Z","_createdAt":"2022-02-03T18:17:03Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/1264123ab69ddd52de481f3bd0a21071d712857e-2000x1335.jpg?w=2000&h=1335&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/1264123ab69ddd52de481f3bd0a21071d712857e-2000x1335.jpg?rect=2,0,1996,1335&w=320&h=214&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/1264123ab69ddd52de481f3bd0a21071d712857e-2000x1335.jpg?rect=1,0,1998,1335&w=654&h=437&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/1264123ab69ddd52de481f3bd0a21071d712857e-2000x1335.jpg?rect=1,0,1999,1335&w=768&h=513&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/1264123ab69ddd52de481f3bd0a21071d712857e-2000x1335.jpg?rect=1,0,1999,1335&w=1024&h=684&auto=format 1024w,\nhttps://cdn.sanity.io/images/55lcecww/production/1264123ab69ddd52de481f3bd0a21071d712857e-2000x1335.jpg?w=1366&h=912&auto=format 1366w,\nhttps://cdn.sanity.io/images/55lcecww/production/1264123ab69ddd52de481f3bd0a21071d712857e-2000x1335.jpg?w=1600&h=1068&auto=format 1600w,\nhttps://cdn.sanity.io/images/55lcecww/production/1264123ab69ddd52de481f3bd0a21071d712857e-2000x1335.jpg?rect=1,0,1999,1335&w=1920&h=1282&auto=format 1920w,\nhttps://cdn.sanity.io/images/55lcecww/production/1264123ab69ddd52de481f3bd0a21071d712857e-2000x1335.jpg?w=2000&h=1335&auto=format 2000w","sizes":"(min-width: 2000px) 2000px, 100vw"}},"layout":"constrained","width":2000,"height":1335,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"supplier-management-best-practices"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"Supply relationship management isn’t new. Without your suppliers, your business can't function. So, it makes sense to ensure your vendors succeed. But, you also want to make sure that your vendors are [fulfilling their contract terms](https://quandarycg.com/procurement-contract-management-best-practices/). The key to making this happen is to follow a set of best practices for supplier management.\n\nHowever, most organizations approach vendor management haphazardly.\n\nRather than ensuring all their vendors follow established procurement guidelines and support business goals, they tend to focus on the most critical ones. \n\nThe challenge here is that every vendor you work with [opens the door to risk](https://www.complianceweek.com/risk-management/top-10-supply-chain-risks-for-2019/27024.article). Delays in deliveries, weak products, and poor customer service (even from your smaller vendors) can grind operations to a sudden stop. \n\nBy following this approach, you'll ensure your vendors are in alignment with your overall business mission. Plus, you'll ensure you're getting the most out of your partnership. \n\n## 1. Align Supplier Management Strategy with Business Objectives\nTransforming your procurement process starts with aligning your [supply chain goals](https://quandarycg.com/10-key-procurement-goals-to-achieve/) with your business goals. As such, your supplier management strategy should be aligned with those goals as well. \n\nBy supporting business objectives, you ensure that your procurement initiatives won’t be overlooked. Additionally, you can help your business reach goals faster. \n\n## 2. Choose the Right Supplier\nYou should have a set of established criteria for choosing vendors. This will ensure that the companies you work with are aligned with your goals. You need to be certain that they'll work to support your goals and provide you with the best value for the goods and services provided. \n\nYou need to look at their pricing, the quality of their goods/services, reputation, any recognition in the industry, previous reviews, etc. \n\nWhile pricing is an important factor, it shouldn't be the key factor, though. Overly focusing on price can leave you with vendors that cost you more in the long run with costly delays, cheap products, and risky practices.\n\n![](https://cdn.pixabay.com/photo/2016/10/24/23/11/doors-1767562_960_720.jpg)\n\n## 3. Sign a Service Level Agreement\nYour [service level agreement](https://www.cio.com/article/274740/outsourcing-sla-definitions-and-solutions.html) ensures that your vendors meet established expectations. You cannot assume that word-of-mouth adjustments to your contracts are enough. Not only is it [legally problematic](https://www.upcounsel.com/breach-of-verbal-contract), but it creates unnecessary complications with your vendors. \n\nInstead, get the scope of the work and the expectations covered in writing. That way, you can revisit the document and evaluate performance against clearly stated, agreed-upon terms.\n\n## 4. Design a Clear Onboarding Process\nYour vendors should be properly educated on your expectations and how to conduct work with your business. [A thorough onboarding process](https://www.lucidchart.com/blog/supplier-onboarding-process) that covers your policies and procedures will ensure that your suppliers are prepared to work with you. \n\nThis process should put any anxieties or confusion to rest so they can hit the ground running.\n\n## 5. Manage Your Vendors Through a Self-Service Portal\nTracking vendors can be a complex chore. The larger your business, the more relationships you’ll have to manage. Luckily, self-service portals can make this incredibly easy.\n\nRather than collect and store information manually in spreadsheets only to have to hunt it down later, you can flip the script. \n\nWith self-service vendor portals, your vendors can upload their own details into their profiles, communicate with you directly, submit invoices, track deliveries, ask questions, and more. \n\nCentralized communication is critical, especially when you're managing multiple vendors. Email is far [too messy and chaotic](https://fsd.servicemax.com/2018/01/09/8-reasons-email-is-ineffective-in-workplace). And often, critical messages fall through the cracks.\n\nPlus, these systems store their details in an easily accessible and comparable profile. This makes it easy to evaluate your supplier relationships. You can check up on underperforming vendors, reward the most successful ones, and quickly compare your suppliers against competitors. \n\n**Best of all, you don’t need an expensive 7-figure turnkey software solution to do it.**\n\n[Using low-code](https://quandarycg.com/low-code-guide/), you can rapidly build a custom vendor portal in a fraction of time (and for a fraction of the cost) that most companies spend on software development.\n\n_(You can see how we've helped clients with vendor portals [in our case studies](https://quandarycg.com/case-studies/).)_\n\n![](https://images.pexels.com/photos/6169668/pexels-photo-6169668.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=650&w=940)\n\n## 6. Automate Menial Tasks\nYour vendor portal will help streamline a lot of your supplier management workflows and processes. But, it's not the only area [you can automate](https://quandarycg.com/benefits-of-procurement-automation/). By automating other areas of procurement, you can free up more time to focus on your vendor relationships and complete more strategic work. \n\nIf you're still using spreadsheets to track invoices, supplier data, and procurement insights, you're behind the times. With procurement automation, you can automate everything from the RFP to invoicing to inventory tracking.\n\n## 7. Monitor Performance\nYou need to give your vendors every opportunity to succeed. Part of that is monitoring their performance. Using the contract and past performance as a guideline, you can provide the feedback and support they need to excel. \n\nYou should have established and known [KPIs for account performance](https://quandarycg.com/critical-vendor-management-kpis/). These KPIs should be in alignment with your business and procurement objectives. KPIs evaluate the value your vendors provide and help quickly identify problem areas.\n\nIt's not about catching them doing something wrong. It's about clearly communicating your expectations and the needs of your organization. \n\nUltimately, each party should benefit from this.\n\nA clear history of performance data can also give you leverage for negotiations when it's time to renew contracts. \n\n## 8. Stay in Contact with Vendors\nRegularly meeting or communicating with your vendors reminds them of the human side of your business. After all, supplier management is [relationship management](https://quandarycg.com/vendor-relationship-management/), too. In-person or through video chat where you can see the person is better than emails or text as much of the human element can be lost in those mediums. \n\nDuring your meetings, you can cover progress, challenges, and issues. Additionally, you can simply check in with your vendor to see how they're doing and you can ask them how you're performing as a client or customer.\n\nYou can also use these opportunities to collaborate with your suppliers on new projects. By involving them in the decision-making stage, you can assess their ability to meet increased demand and leverage their experience.\n\n![](https://images.pexels.com/photos/1181622/pexels-photo-1181622.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=650&w=940)\n\n## 9. Develop Contingencies\nEven the best-performing vendor can hit a snag. Unpredictable supply chain issues are more common now than ever. To mitigate the damage, you need to have backup plans in place. This is a set of protocols to follow should you face a potential disruption. \n\nBy minimizing the impact of any disruption, you help protect your existing relationships. Your business can continue operating and your primary vendors can return when they're able to without feeling like they ruined your business.\n\n## 10. Look for Opportunities to Reduce Cost\nThe benefits of automating away many of the manual processes found in procurement leaves you with cleaner data and more time to analyze it. This means that you can find [opportunities to reduce costs](https://quandarycg.com/how-to-identify-and-significantly-reduce-procurement-costs/) with your suppliers.\n\nWhether that's by analyzing prices across the market, vendor performance, or discount opportunities, you can help increase the success of your business with effective cost reduction.\n\n## 11. Develop Your Soft Skills\nThere's always room for self-improvement, especially with intrapersonal and leadership skills. Improving your ability to have a dialogue with your providers, offer candid feedback, and negotiate will help improve your supplier relationships. And with leadership training, you can help further secure the trust of your vendor.\n\n![](https://images.pexels.com/photos/7651973/pexels-photo-7651973.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=650&w=940)\n\n## Benefits of Successful Supplier Management\nThere are several incredible benefits you can experience by successfully managing your vendor relationships. Here are a few to motivate you to adopt supplier management best practices in your organization: \n\n- **Adapt to Change Faster**: The more you know about your vendors and their abilities, the more prepared you'll be to shift when the market does.\n- **Better Vendor Performance**: By regularly tracking performance against your contracts, you can ensure that your suppliers uphold the agreed-upon terms.\n- **More Savings Opportunities**: Better vendor relationships open the door to order discounts from bulk orders, early payments, shipment consolidation, and being a preferred customer.\n- **Increased Efficiency**: You can be proactive with vendors and improve weaknesses before they become a major problem.\n- **Increase in Supplier Led Innovation**: Better vendor relationships mean better communication. Your vendors will know your goals and how they can help support them, leading to more innovation.\n- **Ensure Vendor Compliance**: Many organizations have compliance requirements vendors need to follow. Evaluating vendor performance regularly helps ensure your vendors remain compliant.\n- **Increased Supply Chain Transparency**: Gain a clear view of how many vendors you have, how they're performing, and where they can improve.\n- **Deeper Supply Chain Insights**: With a greater understanding of your supply chain and its weaknesses, you can make improvements and find opportunities.\n- **Risk Reduction**: You can ensure your vendors are following sustainable and ethical practices. Plus, you can pivot quickly during any [supply chain disruption](https://quandarycg.com/overcoming-supply-chain-disruption/). \n- **More Long-Term Relationships**: Reduce the time spent managing vendor churn and build long-lasting partnerships that will continue to benefit your business.\n \nBy setting up a supply chain management system and ensuring you adhere to best supplier management practices, you can minimize the risk and cost. Best of all, it makes managing a complex network of suppliers much, much easier.\n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-0024bd65-67a6-50eb-9b96-22041687b20a","title":"What Is Purchase Order Automation? (And How to Do It Right)","publishedAt":"2022-02-22T06:00:00.000Z","_createdAt":"2022-03-17T18:13:29Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/bd0f896c829257a8ec22871abdf2da113a5ae267-4776x3184.jpg?w=4776&h=3184&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/bd0f896c829257a8ec22871abdf2da113a5ae267-4776x3184.jpg?rect=0,3,4776,3179&w=320&h=213&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/bd0f896c829257a8ec22871abdf2da113a5ae267-4776x3184.jpg?w=654&h=436&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/bd0f896c829257a8ec22871abdf2da113a5ae267-4776x3184.jpg?w=768&h=512&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/bd0f896c829257a8ec22871abdf2da113a5ae267-4776x3184.jpg?rect=1,0,4774,3184&w=1024&h=683&auto=format 1024w,\nhttps://cdn.sanity.io/images/55lcecww/production/bd0f896c829257a8ec22871abdf2da113a5ae267-4776x3184.jpg?rect=1,0,4774,3184&w=1366&h=911&auto=format 1366w,\nhttps://cdn.sanity.io/images/55lcecww/production/bd0f896c829257a8ec22871abdf2da113a5ae267-4776x3184.jpg?rect=1,0,4775,3184&w=1600&h=1067&auto=format 1600w,\nhttps://cdn.sanity.io/images/55lcecww/production/bd0f896c829257a8ec22871abdf2da113a5ae267-4776x3184.jpg?w=1920&h=1280&auto=format 1920w,\nhttps://cdn.sanity.io/images/55lcecww/production/bd0f896c829257a8ec22871abdf2da113a5ae267-4776x3184.jpg?rect=0,1,4776,3183&w=2048&h=1365&auto=format 2048w,\nhttps://cdn.sanity.io/images/55lcecww/production/bd0f896c829257a8ec22871abdf2da113a5ae267-4776x3184.jpg?rect=1,0,4775,3184&w=2560&h=1707&auto=format 2560w,\nhttps://cdn.sanity.io/images/55lcecww/production/bd0f896c829257a8ec22871abdf2da113a5ae267-4776x3184.jpg?w=3440&h=2293&auto=format 3440w,\nhttps://cdn.sanity.io/images/55lcecww/production/bd0f896c829257a8ec22871abdf2da113a5ae267-4776x3184.jpg?w=3840&h=2560&auto=format 3840w,\nhttps://cdn.sanity.io/images/55lcecww/production/bd0f896c829257a8ec22871abdf2da113a5ae267-4776x3184.jpg?rect=1,0,4775,3184&w=4096&h=2731&auto=format 4096w,\nhttps://cdn.sanity.io/images/55lcecww/production/bd0f896c829257a8ec22871abdf2da113a5ae267-4776x3184.jpg?w=4776&h=3184&auto=format 4776w","sizes":"(min-width: 4776px) 4776px, 100vw"}},"layout":"constrained","width":4776,"height":3184,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"what-is-purchase-order-automation"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"The success of your purchase order process is directly dependent on how efficient and effective its systems are. However, you cannot achieve optimal efficiency without [the benefits of automation](https://quandarycg.com/benefits-of-procurement-automation/). If you want to scale your procurement process, then you need to invest in purchase order automation.\n\nTo help you make the right decision, this post will discuss what purchase order automation is, its benefits, and how you can transform your PO process into a streamlined success in the fastest, easiest, and most affordable way possible.\n\n## What Is Purchase Order Automation? \nPurchase order automation is the use of software to streamline the purchase order approval process using an automated platform. \n\nInstead of using paper-based purchase orders and manually requesting approval, you use a centralized system to send out a templated purchase requisition form to the appropriate team member for approval. After, the system sends the PO to the vendor through your ERP. It's easy.\n\nThis removes multiple manual steps from the process. For one, you won't need to manually fill out, email, print, or file and purchase orders. For another, you won't need to ask management to approve each PO manually either.\n\nWith PO automation, your entire purchase order process happens in a digital environment with minimal friction. In short, it's the best way to [scale purchasing](https://quandarycg.com/how-to-design-a-fool-proof-procurement-strategy/) in your organization.\n\n## Why You Need to Automate Your Purchase Order Process\nFilling out a purchase order is a [fairly standard process](https://www.jotform.com/blog/how-to-fill-out-a-purchase-order/). While there may be some variation between businesses (because each one is unique), the goals are the same. When a business is small, POs are infrequent enough to cause enough waste to be noticed. However, after a business grows, [inefficiencies become noticeable](https://quandarycg.com/8-warning-signs-that-you-need-to-automate-your-business/). \n\n**There are plenty of downsides to manually processing purchase orders:**\n- Lots of risk from [costly errors](https://www.datasciencecentral.com/automation-eliminates-expensive-data-entry-errors/)\n- Data entry is time-intensive\n- Employees waste time on menial tasks \n- The system is completely dependent on team members\n- Bottlenecks form at every approval stage\n\nIf your team is frequently filling out purchase orders manually, it's time to scale their efforts and free them from menial tasks. Rather than rely on a dated, manual process, you can transform your purchase order process with automation.\n\nUsing a purchase order automation platform, you can choose which employees can submit POs and pre-approve their budgets. You can also white-list vendors. Once you have your guardrails in place, your team simply needs to use the platform to file a PO. \n\nAs long as the PO is within the guardrails, the system will automatically approve it. If not, the system flags it as an exception. Management receives an alert. And they'll need to manually review the PO before approving it. \n\nThis system keeps everyone accountable while eliminating the need for bogging down the process with manual steps at each stage. \n\n![](https://cdn.sanity.io/images/55lcecww/production/9293531e8c09a4436c84e19b1c71883cc8dc95ee-980x542.jpg)\n\n## Using Pre-Built Purchase Order Templates\nYou don't need to reinvent the wheel. There are a wide variety of [pre-designed purchase order templates](https://templatelab.com/purchase-order-templates/) out there. Whether you choose a custom solution or a turnkey one, you can easily find the PO template you need. \n\nMost of the time, the basic purchase order template usually works well. However, in some cases, a customized template might also be required. Either way, your pre-built template will help streamline your future purchase orders.\n\nThe purchase order form is vital. It's that initial source of communication between you and your vendor. As such, it should cover everything your team and your vendor needs to successfully carry out the purchase order:\n- Your company details (Legal name, address, billing information)\n- Delivery address\n- Product details (SKU, code, name, and/or description)\n- Product quantity\n- Agreed on pricing\n- Requested delivery date\n- Payment terms\n- Summary (Subtotal, Taxes, Shipping Costs, Vendor Discounts, & Final Total)\n\nWith the right purchase order template, you can save time by collecting the relevant information, reducing unnecessary back and forth. You can also reduce the risk of mistakes. \n\nIn the end, an effective purchase order template [strengthens the relationship](https://quandarycg.com/vendor-relationship-management/) between supplier and business by strengthening the communication between the two groups. \n\nAnd when you combine the right template with the most effective purchase order automation system, the benefits are profound.\n\n## The Benefits of Purchase Order Automation\nAutomating your purchase order process opens the door to a range of benefits for your organization. Here are a few.\n\n1. **Easier to Scale**: With an automated system, you won't need more people and time to stay on top of your workload.\n2. **Save Time & Money:** Automation streamlines the time-consuming tasks, giving your team more time to focus on meaningful tasks while [reducing costs](https://quandarycg.com/how-to-cut-costs-while-increasing-efficiency-in-your-business/). \n3. **Reduce Error:** Human error happens because people make mistakes. Automating your PO process reduces risk because everything operates within a predefined and approved system.\n4. **Less Risk:** Purchase orders are [legally binding contracts](https://quandarycg.com/procurement-contract-management-best-practices/). Automating the process ensures that you don't over/under the order or pay. Plus, it's more secure.\n5. **More Visibility:** PO automation keeps your data centralized and your systems integrated, giving your real-time reporting and complete transparency.\n\n## Purchase Order Automation: How to Do It Right\nAll in all, purchase order automation is surely a valuable tool that can help you scale your growing business. The benefits are clear. But, it's not always easy to get started. \n\nWhether you go with a turnkey solution or a custom purchase order automation system, there's a level of risk. For one, any new system requires an investment. And you'll want to be certain that your investment will pay off in time and resources saved. However, there are also the risks involved with onboarding new software. You also have to account for any potential downtime from the transition.\n\nLuckily, low-code can help make the transition to an automated purchase order system much, much easier. \n\n[Low-code](https://quandarycg.com/low-code-guide/) is an easy way to rapidly build, deploy, and test applications using a drag and drop visual interface. In short, it empowers businesses of all sizes and budgets to build the custom software solutions they need without waiting months or burning through their entire IT budget. \n\nIf you're looking for a simple purchase order automation solution, then you should consider investing in a low-code solution. Using low-code, we've helped businesses of all sizes build the custom solutions they need to streamline their business, scale growth, and drastically reduce costs. \n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-f69043d4-e0c5-5530-a214-f7a1986966d8","title":"10 Essential Accounts Payable Automation Benefits","publishedAt":"2022-03-01T20:00:00.000Z","_createdAt":"2022-03-16T19:45:06Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/0ffd4b034cb0cd165b5955026a617456e31be99b-2000x1500.jpg?w=2000&h=1500&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/0ffd4b034cb0cd165b5955026a617456e31be99b-2000x1500.jpg?w=320&h=240&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/0ffd4b034cb0cd165b5955026a617456e31be99b-2000x1500.jpg?rect=1,0,1998,1500&w=654&h=491&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/0ffd4b034cb0cd165b5955026a617456e31be99b-2000x1500.jpg?w=768&h=576&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/0ffd4b034cb0cd165b5955026a617456e31be99b-2000x1500.jpg?w=1024&h=768&auto=format 1024w,\nhttps://cdn.sanity.io/images/55lcecww/production/0ffd4b034cb0cd165b5955026a617456e31be99b-2000x1500.jpg?rect=1,0,1999,1500&w=1366&h=1025&auto=format 1366w,\nhttps://cdn.sanity.io/images/55lcecww/production/0ffd4b034cb0cd165b5955026a617456e31be99b-2000x1500.jpg?w=1600&h=1200&auto=format 1600w,\nhttps://cdn.sanity.io/images/55lcecww/production/0ffd4b034cb0cd165b5955026a617456e31be99b-2000x1500.jpg?w=1920&h=1440&auto=format 1920w,\nhttps://cdn.sanity.io/images/55lcecww/production/0ffd4b034cb0cd165b5955026a617456e31be99b-2000x1500.jpg?w=2000&h=1500&auto=format 2000w","sizes":"(min-width: 2000px) 2000px, 100vw"}},"layout":"constrained","width":2000,"height":1500,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"accounts-payable-automation-benefits"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"Missing payments on your vendor accounts can freeze essential services, cost you additional fees, and bottleneck the growth of your business. At the same time, managing your accounts payable can be more time-consuming as your business grows. So, how do you keep up? It's simple: Streamline your accounts payable processes with automation.\n\nStill, investing in new systems can be risky. \n\nFirst, there's the cost. Not just for the software (whether custom or turnkey), but for planning, testing, and deploying new systems. Second, you need to train your team. Plus, you have to be ready for potential disruptions to your business. Finally, you have your reputation to consider if you're spearheading any major change in systems.\n\nThat's _a lot_ of pressure.\n \nTo put your mind at ease, let's explore the 10 essential benefits of Accounts Payable automation, and discover how to bypass your invoicing problems with a simple, affordable solution.\n\n## 1. More Time\nAccounts payable automation helps you save time by speeding up the process. If you have unapproved invoices sitting on your desk or waiting in your inboxes, you'll know exactly what we're talking about here. \n\nInstead of manually going through each invoice, reviewing it, and filing it, you can [streamline the whole process](https://quandarycg.com/accounts-payable-automation-best-practices/). You can set up systems and guardrails so that the right people get the right paperwork at the right time. On top of that, you can even create reminders to ensure that nothing falls through the cracks.\n\nAs a result, you can reduce the time it takes you to process your invoices by 18% or [roughly five and a half days](https://www.aberdeen.com/cfo-essentials/managing-your-supply-chain-with-ap-automation/).\n\nWhat's more, you'll cut out a lot of unnecessary menial tasks. Things like searching for lost documents, manual data transfers between spreadsheets, manually hunting down the right team member to sign off on a purchase will become a distant memory. Instead, you'll have more time to focus on more meaningful tasks. \n \n## 2. More Savings\nMany vendors provide early-payment discounts. They like getting paid early because it gives them the cash they need to keep their business running. The problem is that manual invoices [tend to take a lot longer](http://businesswire.com/news/home/20170823005347/en/New-Study-Shows-Increased-Adoption-Dynamic-Discounting) to process. Often, you'll end up missing early payment discounts. \n\nIn fact, you may find yourself paying late fees on invoices instead...\n \nAccounts payable automation software streamlines invoice processing. This means you'll [get your vendors paid faster](https://quandarycg.com/supplier-management-best-practices/) and potentially cash in on those early payment discounts.\n\n![](https://images.pexels.com/photos/4386150/pexels-photo-4386150.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n \n## 3. Reduced Invoicing Costs\nAP automation is more precise without being more hands-on. Once you set up the automation, your data will move within that system. This means that the chance for human error is greatly reduced. (Afterall, every human touchpoint [increases risk](https://quandarycg.com/procurement-risks-and-how-to-navigate-them/).) \n\nAs a result, you won't need to worry as much about delays, missed payments, or other forms of friction caused by data entry errors when processing invoices. \n\nAP automation can also process more invoices without needing more employees. So, you can keep your back office staff small and have more money to invest in other systems.\n\nInvoice automation can [reduce invoice costs by 50% to 80%](https://ardentpartners.com/2016/04/smbs-getting-started-with-ap-automation/), depending on how efficient your system is currently. In some cases, automation helps businesses reduce the cost of invoicing by a factor of five.\n\nThere is also a range of alerts you can use as well to lower your costs. Alerts for duplicate invoices, payment reminders, and unauthorized spending can help you [avoid additional costs](https://quandarycg.com/how-to-identify-and-significantly-reduce-procurement-costs/).\n\nAnd if your organization is looking for ways to stay green while cutting costs, you can eliminate printing, paper, and storage costs for physical copies. With AP automation, all your documents will be digital.\n\n## 4. Increased Supply Chain Transparency\nWith AP automation, your data stays within the system, and you can track everything using dashboards. This means you can review employee and vendor productivity, [compare performance over time](https://quandarycg.com/critical-vendor-management-kpis/), and ensure that everyone's fulfilling their roles or contracts.\n\nManagers can use AP software to analyze the performance of a single employee or an entire team in a snapshot. With complete access to performance data, managers can create evaluations faster and easier.\n\nPlus, you can reduce the risk of fraud. There are no stacks of paper for invoices to \"get lost\" in. There are no special deals between employees and vendors on the side. And it's much harder to fabricate spending.\n \n## 5. Improved Data Accuracy\nNo one enjoys manually inputting data. It's boring, time-consuming, and repetitive. As a result, people make mistakes. It happens all the time. And the chances of errors happening multiply with each person involved in the process. \n\nWithout AP automation, you won't have accurate data. And without accurate data, you can't make meaningful insights. In fact, you may end up making decisions based on incomplete or inaccurate data that hurt your business in the long run.\n \nAP automation software moves data between your systems seamlessly. It can, for example, automatically populate invoice headers, line-item data, and payment details. And it can validate that data against what's in your other systems to ensure accuracy. Ultimately, you'll end up with accurate data you can trust.\n\n![](https://images.pexels.com/photos/2058136/pexels-photo-2058136.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n \n## 6. Real-Time Insights\nIn the complex web of accounts payable processes and tools, AP automation software connects multiple data silos to give you better reporting and more complete insights.\n\nRather than running around pulling reports from all your tools, spreadsheets, and platforms only to have one unlucky team member compile the data into a report, you can get real-time insights in a simple dashboard with a few simple clicks.\n\nWith real-time insights, you'll empower your AP team by giving them the data they need to remain agile and make proactive changes that give your company the edge. \n\nAnd you'll have more accurate insights into your budget. This will keep you from overspending, ensuring you stay cash flow positive. \n \n## 7. Enhanced Compliance\nWith increasingly stringent standards and regulations through 2022 and beyond, you need to stay compliant. This means you need to ensure that your customer, employee, and vendor data remains secure. AP automation software makes it much easier to keep your sensitive data protected. \n \nSpreadsheets aren't secure. One leaked password and someone can access all your sensitive supplier data. Email isn't much better. Since the COVID-19 pandemic, there has been a 6,000% increase in cyber crime. All it takes is for an employee to click on the wrong link to compromise your system.\n\nWith AP automation, you can secure your data in an encrypted system while setting up additional security features for access. For example, you can add dual-factor authorization and multiple approval checkpoints for purchases. You can even add alerts for suspicious activities.\n \n## 8. Low-Cost Data Storage\nStoring physical copies of your business records can cost thousands of dollars to maintain. File cabinets are also tedious to sort through when searching for documents. \n\nStill, the IRS recommends that you save your records for up to seven years...That's a lot of paper to have to lie around, stuffed in cabinets, taking up space in your business.\n \nAP automation software relies on digital copies of your records instead of physical ones. This allows your company to easily migrate all of your records to an easily searchable cloud storage space. As a result, you'll have more room in your office without rows of filing cabinets everywhere. \n\n## 9. Simple Systems Integration\nAny new system you deploy in your organization should [easily integrate](https://quandarycg.com/benefits-of-systems-integration/) into your existing ones. Accounts payable automation software typically integrates easily into your ERP, financial, and other business systems. This allows data to transfer smoothly between your systems without relying on employees.\n\n![](https://images.pexels.com/photos/1000445/pexels-photo-1000445.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n \n## 10. Improved Morale\nAs we mentioned earlier, no one likes doing boring, monotonous work. It's soul-crushing and draining. Ask any one of your team members if they'd rather work on a strategic project that can grow your business or move data from one spreadsheet to another, and you'll quickly discover the truth. \n\nWhen people have to do a task they dislike over and over again, it wears them down. So, when you give someone a huge time-eating task like manual data entry to balance with their daily tasks and the pressure of having to meet business objectives with deadlines, you get the perfect recipe for frustration and (ultimately) burnout.\n\nAP automation frees up your employees by letting robots take over the monotonous work so they can focus on the value-add activities. Your team will feel less stressed as they work on tasks that make them feel successful.\n \n## Automate AP with Low-Code\nWith so many clear benefits to AP automation, why do so many businesses still rely on manual processes? In simple terms, software solutions aren't cheap. Whether you buy a turnkey AP platform or your business a custom one from scratch, there's a cost. \n\nGranted, the cost benefits of any AP system will help a business save more over time, there is still a lot of hesitation at the start. Change management, disruption, and the horror stories of failed digital transformation efforts don't make it easy. \n\nFortunately, there's an affordable way to automate your AP processes without breaking the bank on a custom build or navigating the downsides of cookie-cutter solutions. \n \n[Low-code](https://quandarycg.com/low-code-guide/) empowers businesses by making custom application development cheaper and faster than traditional software development. With low-code, you can create custom applications and integrations with a \"drag and drop\" visual interface. \n\nThe end result is custom software solutions that go live in days or weeks instead of months and years (and for much, much cheaper.)\n \nCheck out the case studies below to see how we've helped our clients build custom accounts payable automation solutions using low code. \n","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-5f4e9b81-965b-588c-bb26-034dcd918488","title":"No Vendor Data Management? Then You’re Behind…","publishedAt":"2022-03-10T06:00:00.000Z","_createdAt":"2022-03-11T11:01:37Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/2adaa5ea8c74da3fad0f5f20a000af4e13f981de-1000x667.jpg?w=1000&h=667&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/2adaa5ea8c74da3fad0f5f20a000af4e13f981de-1000x667.jpg?rect=0,1,1000,666&w=320&h=213&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/2adaa5ea8c74da3fad0f5f20a000af4e13f981de-1000x667.jpg?w=654&h=436&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/2adaa5ea8c74da3fad0f5f20a000af4e13f981de-1000x667.jpg?w=768&h=512&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/2adaa5ea8c74da3fad0f5f20a000af4e13f981de-1000x667.jpg?w=1000&h=667&auto=format 1000w","sizes":"(min-width: 1000px) 1000px, 100vw"}},"layout":"constrained","width":1000,"height":667,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"vendor-data-management"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"Managing vendor data can be a nightmare. And if you're trying to focus on growing your business, the last thing you need to do is waste time hunting down supplier information in a spreadsheet. You've got better things to focus on. And this is where vendor data management software comes in handy.\n\nThis innovative software solution effortlessly consolidates information from multiple suppliers onto a single platform, [saving you hours](https://solutionsreview.com/data-management/youre-probably-wasting-two-hours-per-day-to-poor-data-management/) of valuable time each week. That means you'll spend less time collecting information and hunting around for insights while getting more time to grow your business.\n\n## An Overview of Vendor Data Management\nBut how do you get started? After all, automating systems is easy to talk about and a lot harder to implement. [As procurement professionals](https://quandarycg.com/procurement-automation-services/), we have a lot of experience automating supply chains for organizations. And we're here to walk you through automating your vendor data management with accessible software solutions.\n\nThis guide is intended to help your business rapidly set up and deploy vendor data management software that'll give you the edge. \n\nIt will walk you through each step of the process, from finding a suitable solution to getting started and making the most of your investment. \n\nWhat can you anticipate from this guide? We’ll:\n- Define vendor data management software.\n- Explain why it's useful for your company. \n- Show you how to find the best solution for your needs. \n- Explain how you can choose the right solution\n- Discuss an easy way to implement the best vendor data management solution\n\n![](https://images.pexels.com/photos/3832684/pexels-photo-3832684.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n\n## What Is a Vendor Data Management Software?\n[Vendor data management software](https://www.capterra.com.au/directory/10024/vendor-management/software) is designed to help businesses keep track of their vendor relationships and performance.\n\nVendor data management software transforms your business processes by moving your organization away from manual data collection methods, leveraging ROI-heavy benefits of automation. In short, you can wave goodbye to haphazardly collecting vendor data with emails, spreadsheets, and wpritten notes that you can never find.\n\nInstead, these platforms centralize your data into one platform and automate many of the manual data management processes. This includes automating how your organization collects contact information, stores contracts/legal documents, records performance metrics (and other [important KPIs for your vendors](https://quandarycg.com/critical-vendor-management-kpis/)). You can also [automate invoicing](https://quandarycg.com/how-invoice-automation-works/) and store payment data for more accurate budgeting and forecasting.\n\n## Turnkey vs. Custom Vendor Data Management Software\nWhile vendor data management software can [save you time and money](https://quandarycg.com/how-to-cut-costs-while-increasing-efficiency-in-your-business/), it's still important to see adopting any new business solution as an investment. Whether or not you want a turnkey solution or you want to build a custom solution depends on how much you're willing to invest and what your goals are. \n\nThere are [positives and negatives](https://tweakyourbiz.com/technology/software-technology/custom-turnkey-comparisons) for both.\n\nTurnkey solutions are often cheaper. You can quickly purchase and deploy them. Plus, they come with a range of features. However, they won't be made for your business. As a result, you'll likely get features you'll never use. And you'll miss out on other features.\n\nCustom solutions are usually more expensive. But, they are designed specifically for your business. The downside here is more risk. You'll also need to get the most out of your investment, so you may rely on these platforms longer past their prime.\n\nAn alternative solution is to use [low-code](https://quandarycg.com/low-code-guide/) to build the custom vendor data management solution that you need. Low-code platforms let you rapidly build custom applications using a \"drag and drop\" visual interface. This allows you to rapidly build custom vendor data management systems without burning through your budget.\n\nWe specialize in building low code procurement systems for organizations of all sizes using low-code. You can [see some of our work here](https://quandarycg.com/case-studies/).\n\n![](https://images.pexels.com/photos/270348/pexels-photo-270348.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n\n## 6 Benefits of a Vendor Data Management System\nOn the fence about whether or not you need to upgrade your existing process with a vendor data management system? These benefits will help you understand why your business should make the change.\n\n### 1. Cost Reduction\nIf you're like most business owners, you're always looking for ways to save time and streamline your operations. In today's world, that means [leveraging automation](https://quandarycg.com/workflow-automation-software/) to reduce menial tasks and speed up processes. And that's why so many businesses are turning to vendor data management software. It helps automate most of the process.\n\nAutomating vendor data management effortlessly consolidates information from multiple suppliers into a single location, saving you hours of valuable time each week. That means less time spent on menial tasks and more time to focus on your business.\n\n### 2. Risk Reduction\n[Every human touchpoint](https://www.automation.com/en-us/articles/2019/human-error-how-automation-can-mitigate-operationa) in your workflows opens your business up to risk. With managing vendor data, a small data entry error could grind your production to a halt.\n\nTyping in the wrong number, data, or some other vital piece of information could result in a delayed payment that damages a vendor relationship. Or, it could mean that you send a delivery to the wrong address.\n\nErrors cost your business time and money while putting you at increased risk. Thankfully, vendor data management systems automate the process, removing people from the equation and helping you reduce potentially problematic situations.\n\n### 3. Better Vendor Relationships\n[Managing vendor relationships](https://quandarycg.com/vendor-relationship-management/) is impossible without accurate data. And it only gets worse if your vendor communication is all over the place (emails, mail, phone calls, text, etc.). With so many different platforms, important messages get missed. Mistakes happen. Relationships grow strained.\n\nIt can also be really hard to establish a baseline of vendor performance with your data all over the place.\n\nVendor data management systems consolidate your data and communications. This makes it easy to track vendor performance and communicate with your vendors. For those who are underperforming, you can reach out proactively with the data sets you need to get them back on track.\n\n### 4. Improved Reporting\nHunting down information across multiple mediums is a time-consuming, headache-inducing experience. [Spreadsheets aren't exactly fun](https://quandarycg.com/warning-spreadsheets-will-ruin-your-business/) to look at either.\n\nVendor data management systems create user-friendly databases for real-time, accurate reporting. No more pulling data from various spreadsheets and trying to combine it into a uniform report. Instead, you can get a transparent overview of your supply chain at a glance.\n\n### 5. Easier to Use\nWhen you have numerous different systems for collecting data information, onboarding new employees is extremely challenging. However, onboarding is often much easier with vendor data management systems. \n\nIf you choose a turnkey solution, you'll often work with a team or follow a tutorial that will help your team learn the new system. After that, everyone's consolidated on the platform, making it much easier to manage. \n\nAlternatively, if you choose a custom solution, you'll need to work with a [change management team](https://www.prosci.com/resources/articles/core-roles-in-change-management) to get your staff up to speed on the new system. \n\nEither way, you'll have a single system that everyone can learn how to use quickly.\n\n### 6. Fewer Time-Consuming Tasks\nVendor data management software automates most of the data management processes, giving you more time to focus on your business. For example, your team won't need to manually collect vendor data. Instead, they can create a digital form your vendors can fill out that automatically submits the data into your system.\n\nPlus, with all your data in one system, you won't have to [waste time hunting down documents](https://www.itproportal.com/news/employees-are-wasting-hours-each-week-hunting-for-documents/). Because everything is centralized in one system, your team will know where to go to find the information they need. \n\n![](https://images.pexels.com/photos/1174732/pexels-photo-1174732.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260)\n\n## Transitioning to a Vendor Data Management Platform\nYou're not alone if you feel overwhelmed by the idea of automating your vendor data management. While the benefits are clear, there's still risk involved in switching to a new system, especially while balancing the management of your business. These steps will help make the transition to a new software solution easier.\n\n### Step 1: Assess Your Needs and Goals\nWhat specific features do you need from your vendor data management software? You can figure these out easily using the [MoSCow method](https://miro.com/templates/moscow-matrix/) (Must Have, Should Have, Could Have, and Won’t Have). This will help you narrow down what kind of solution you need.\n\n### Step 2: Do Your Research\nResearch the vendor data management solutions out there. Look up what they offer. Review their pricing. And see what kind of onboarding support they provide. You also want to check out reviews and testimonials. \n\nOnce you've narrowed down the platforms, you can email software providers. Ask them any additional questions you may have. See if they have experience deploying their solution in a business that's similar to yours.\n\n**Most importantly:** Do not be afraid to ask questions. The more detailed and extensive, the better. You don't want to assume your way into being stuck paying for an inadequate vendor data management system.\n\n### Step 3: Ask for a Demo\nOnce you have done comparisons and narrowed down your choices, request a demo of the vendor data management software. You want to see if it's a good fit for your business. Be sure to ask plenty of questions during the demo, too. This will ensure you understand exactly how the software works and what it can do for your business.\n\n### Step 4: Consider Technology Consultants\nMost business owners don't have the time to vet new software solutions for their business. They're focused on improving the core offerings of their business. A simple solution is to team up with [a technology consultant](https://quandarycg.com/tech-consulting/) who can help you deploy the right vendor data management solution for your business. \n\n### Step 5: Take the Leap\nOnce you've done your research, established your goals, explored solutions, and narrowed it down, you're ready to make a decision. Whether you choose to build a custom vendor data management solution or you choose a turnkey one, you'll be on the path to drastically improving your vendor management processes.\n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-2a3344b0-727d-5a10-88a5-ee0277e4ee7b","title":"Procurement Negotiation: How to Make It a Win-Win","publishedAt":"2022-04-05T05:00:00.000Z","_createdAt":"2022-03-31T20:31:51Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/3637021c4a091ccce45e9555be7bf6f4145dddfe-6000x4000.jpg?w=6000&h=4000&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/3637021c4a091ccce45e9555be7bf6f4145dddfe-6000x4000.jpg?rect=0,3,6000,3994&w=320&h=213&auto=format 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Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"You've been there before: It’s time to negotiate with the next supplier, and you’re dreading it. The boss chose you as the lead negotiator even though you feel you’re the weakest negotiator on the team.\n\nTo make matters worse, the boss said that the results of this negotiation would figure prominently in your next review. Doing well can be the difference between a promising future with the company or years of mediocrity for you...\n\nNo pressure.\n\nFortunately, there are tools and knowledge available to make your next procurement negotiation successful and productive. Let’s look at how you can handle procurement negotiation like a pro, so it’s a win-win for everyone. \n\n## Procurement Negotiation Basics\nNegotiation is a conversation to reach an agreement. Procurement negotiation is a process by which professionals engage with each other to [create agreeable terms for a contract](https://quandarycg.com/procurement-contract-management-best-practices/).\n\nBoth parties typically discuss pricing, payment, delivery date, and timeline. Ideally, the negotiations should consider the best options for both parties to [build strong relationships](https://quandarycg.com/vendor-relationship-management/) that lead to long-term business. \n\nUltimately, this creates a win-win result for both parties.\n\nIn reality, procurement negotiations don’t always work out so easily or successfully. Those who enter into the negotiation often might not think about what’s best for everybody. Instead, they may be thinking about what’s [best for themselves](https://www.pon.harvard.edu/tag/adversarial-negotiation/). \n\nWith that in mind, it’s important to learn all you can about who you’re negotiating with and their true objectives. A good way to do that is to understand the different styles of negotiation that people use. That way, you're ready for whatever comes your way. \n\n![](https://images.pexels.com/photos/40815/youth-active-jump-happy-40815.jpeg?auto=compress&cs=tinysrgb&w=1260&h=750&dpr=2)\n\n## 5 Styles of Negotiation\nKnowing and understanding negotiation styles will help you understand how your supplier will try to achieve their goals. You should also know your own business and [vendor goals](https://quandarycg.com/critical-vendor-management-kpis/). You should also know your negotiating style. You’ll be better informed and ready for any situation during the negotiation process if you do. \n\nIt’s important to remember that the negotiation has two elements: the relationship and the outcome. And the styles of negotiation are based on which element the negotiator values more. These are the 5 negotiation styles:\n\n- **Competition**: Negotiators who use a competition style value the negotiation outcome more than the relationship between the two parties. Negotiators who use this style are looking to win the negotiation and want the other party to lose. Usually, negotiators who favor this style will do anything to get the win. \n- **Collaboration**: Collaborators value outcome and relationship equally because they believe both are important. They want a win-win outcome and a long-term relationship. And they'll work hard to achieve both. \n- **Compromise**: While compromisers value outcome and relationship, they are willing to sacrifice a little of each to reach an agreement. They believe in winning some of what they want while losing a little bit of it. \n- **Accommodation**: Accommodators value the relationship more than the outcome and are willing to lose the negotiation. The result is a “you win, and I lose” style. This is the opposite of the competitive style. \n- **Avoidance**: With this style, the negotiator doesn't value the outcome or the relationship. It can simply be considered a “lose-lose” model with the party withdrawing from the negotiation. \n\nIt’s important to know that each negotiation style has advantages and disadvantages. Using them depends on the goals you and the other party want to achieve. In a best-case scenario, the goals will be the same. \n\nIf the goals aren't the same, you may need to adjust your approach. The other party may do something unexpected, so you must be ready to shift strategies. That’s why it's imperative to plan and know the 7 stages of procurement negotiation. With these tools in your toolbox, you'll be ready to adapt toward success as you negotate.\n\n## 7 Stages of Procurement Negotiation\nWhen entering into any procurement negotiation, there are 7 stages to the process. Knowing these 7 stages can help you plan and be ready, so that the negotiation has the greatest chance of success. \n\n1. **Preparation**: Thorough [preparation is extremely important](https://learn.uvm.edu/blog/blog-business/5-steps-to-prepare-for-negotiations). This is when you acknowledge your negotiation style first. Then, you decide on the relationship and outcome you expect to achieve with the other party. You should also research the other party and, if possible, learn what negotiation style they typically use. \n2. **Opening**: During the opening, the parties state the goals of the negotiation. This is when you can discover if the relationship and outcome expectations match. \n3. **Testing**: As the name implies, both parties are “testing” each other to understand each party's values. Good communication and listening skills are key to this step. Paying attention during this stage can help you find opportunities.\n4. **Proposing**: Both parties propose what they expect to achieve at this stage. It’s also a time when you and your team may want to think about modifications to your strategy based on the proposal from the other party. \n5.** Bargaining**: Based on what has been said, both parties should offer compromises if needed. Ideally, any compromises should be equal and agreeable to both parties. For example, look for opportunities to [cut procurement costs](https://quandarycg.com/how-to-identify-and-significantly-reduce-procurement-costs/) on both sides. This way, everyone's paying the optimal price for the good or service.\n6. **Agreement**: Once compromises are reached, the parties can make an agreement. When both parties accept the agreement and sign, the procurement contract becomes a legally binding document. \n7. **Closure**: Both parties receive documentation and contracts from the previous stages for their records. After this stage, the negotiation is complete.\n\n![](https://images.pexels.com/photos/261621/pexels-photo-261621.jpeg?auto=compress&cs=tinysrgb&w=1260&h=750&dpr=2)\n\n## How to Successfully Navigating Procurement Negotiation\nProcurement negotiation does not have to be an intimidating process. Each party needs the other to succeed. As long as you understand the dynamic, you can set yourself on the path to success. \n\n**The main points to remember are:**\n- Acknowledge your goals regarding the outcomes and relationships you expect to achieve with the other party. \n- Know your negotiation style and, if possible, the other party's style. \n- Understand the 7 stages of procurement negotiation to plan properly for a smooth and successful process. \n\nFollowing these steps will give you the best chance of a successful, “win-win” procurement negotiation. \n\nIf your business is looking for ways to [make procurement more](https://quandarycg.com/the-procurement-management-strategic-playbook) efficient, Quandary can help. \n\nWe help businesses reduce time-consuming and menial tasks using low code platforms. And we provide insights to help them streamline processes, reduce costs, and get more out of their procurement processes.\n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-ba2b20e9-d57a-5ed7-88c5-fdf540113761","title":"What Is Invoice Data Capture (And How to Automate It?)","publishedAt":"2022-04-08T15:00:00.000Z","_createdAt":"2022-04-07T07:50:49Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/86b84bc901d1b30d04f22652581e25dbbe20c1f9-4368x2912.jpg?w=4368&h=2912&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/86b84bc901d1b30d04f22652581e25dbbe20c1f9-4368x2912.jpg?rect=0,3,4368,2907&w=320&h=213&auto=format 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Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"Most firms struggle with traditional manual invoice data capture methods. Paper ledgers, spreadsheets, and OCR methods are error-prone with countless wasted hours. Manual solutions are both [expensive and time-consuming](https://quandarycg.com/how-to-cut-costs-while-increasing-efficiency-in-your-business/). The solution is to streamline the invoice data capture process with the right automation solution that yields a positive ROI in both time and revenue saved.\n\n## What Is Invoice Data Capture?\nInvoice data capture involves entering invoice details like invoice number, supplier name and address, project details, PO number, and other critical details for tracking goods and services provided by vendors and suppliers. \n\nTypically, businesses collect this data manually [using spreadsheets](https://quandarycg.com/warning-spreadsheets-will-ruin-your-business/) or paper ledgers. Depending on the size of the business, a procurement team, manager, or c-level executive manages this process. They pull data from structured, semi-structured, and unstructured sources into a more unified format. \n\nAutomated invoice data capture involves using turnkey or custom applications to automatically scrape invoices for the relevant information. These tools use [optical character recognition (OCR)](https://www.hyland.com/en/resources/terminology/data-capture/what-is-optical-character-recognition-ocr#) to scan invoices into digital copies or have vendors input their invoice details into a [self-service portal](https://quandarycg.com/supplier-management-best-practices/). \n\nAs a result, the data moves seamlessly through their procurement systems, saving them time and money. Automated invoice data capture reduces errors and increases data transparency by removing people from the manual data capture part of the process.\n\nReducing errors in your invoice processing process goes beyond cost savings. Without mistakes or delays, your vendors, customers, clients, and even your team will have a more positive experience with your organization, keeping them around longer. \n\nUltimately, your whole organization benefits from streamlining your invoice data capture.\n\n![](https://images.pexels.com/photos/164686/pexels-photo-164686.jpeg?auto=compress&cs=tinysrgb&w=1260&h=750&dpr=2)\n\n## Types of Sources for Invoice Data Capture\n\n### Structured Documents\n- Claim Forms\n- Surveys\n- Tests\n- Questionnaires\n\n## Semi-Structured Documents\n- Invoices\n- Purchase Orders\n- Explanation of Benefits\n- Bills of Lading\n\n## Unstructured Documents\n- Letters\n- Contracts\n- Memos\n- Articles\n- Memos\n\nOther documents used in invoice data capture include credit memos, expense reports, canceled checks, shipping notices, credit memos, collection notices, etc.\n\nSurprisingly, most organizations still use manual processes. And many haven't fully automated the process. \n\nAn [Association for Intelligent Information Management](https://www.aiim.org/?hsLang=en) (AIIM) survey of 493 businesses found that:\n- 34% Manually process data\n- 17% Capture full-text for search\n- 15% Auto-index captured data\n- 15% Scan, but don't process data\n- 10% Scan semi-structured data\n- 7% Use fixed forms\n- 2% Don't scan anything\n\n## Why You Need to Automate Your Invoice Data Capture\nAn automated invoice data capture solution reduces errors and inefficiencies. Done properly, you can streamline the classification, extraction, and validation of data, regardless of invoice type. As a result, you save your business time and money while avoiding costly mistakes. But, let's get more specific.\n\n### The Benefits of Automating Invoice Data Capture\n- **Allows for touchless invoice processing.** Environmentally friendly because it’s paperless. Is also less time-consuming and requires minimal human intervention required.\n- **Increases staff productivity**. With less manual work required, employees can focus on other important mission-critical tasks.\n- **Reduces storage costs**. No more paper means no more paper costs, file cabinets, or storage space.\n- **Improves supplier relationships by shortening invoice times.** It also decreases payment delays and endless back and forth payment updates.\n- Reduced processing costs and the number of manual touches required. This speeds up the overall processing time while improving your bottom line.\n- **Streamlines the approval process**. Rather than answering countless emails, department heads [can easily approve invoices.](https://www.google.com/url?q=https://www.entrepreneurbusinessblog.com/2019/07/edge-automation-accounts-payable-operations/&sa=D&source=docs&ust=1649320927687973&usg=AOvVaw3MKSnfDm_n7nIOhY3K2BxX)\n- **Eliminates unpaid invoices falling through the cracks**. This ensures your vendors get paid on time, ensuring your business receives the services and products needed to continue operations.\n\n![](https://images.pexels.com/photos/6248980/pexels-photo-6248980.jpeg?auto=compress&cs=tinysrgb&w=1260&h=750&dpr=2)\n\n## Obstacles to Automating Invoice Data Capture\nBusinesses often grow faster than they can scale. The struggle for many organizations, especially in an increasingly digital landscape, is to invest in the right systems that yield a positive ROI. \n\nBut, it's not without risk. \n\nIf you're going to [invest in a digital solution](https://quandarycg.com/quandary-build/), you need to be certain that it will not create more problems than it solves. And you need to know that your team will adopt it, that there will be minimal disruption to your business, and that the return will be worth the whole process. \n\nIt would be a mistake to think that some of the tools designed to streamline invoice data capture are without flaws. \n\nFor example, many organizations use optical character recognition (OCR) software to capture invoice data. This method works well, but it's not without its downsides. OCR [can be cumbersome and unreliable](https://www.geeksforgeeks.org/advantages-and-disadvantages-of-optical-character-reader-ocr/) at times due to limitations of the technology. Sometimes readings can be inaccurate. Other times, the machines will struggle to read handwritten documents. It can even take longer if the scanned document only has a limited amount of text.\n\nOther organizations receive their invoices via email or [electronic data interchange](https://www.up.com/suppliers/order_inv/edi/what_is_edi/) (EDI). While digital invoices are [better than paper invoices](https://quandarycg.com/how-invoice-automation-works/), even this partially automated method requires significant manual data entry. EDI is also error-prone due to misentered data and lost invoices. \n\nYou need to know what features are essential for an automated invoice capture solution to avoid missteps. \n\n## Automated Invoice Data Capture Solution Necessities\nWhile automated data invoice capture is a small step in the AP process ([and best practice](https://quandarycg.com/accounts-payable-automation-best-practices/)), it’s one of the most critical steps. To coin an old developer acronym, GIGO ([Garbage In, Garbage Out](https://www.techtarget.com/searchsoftwarequality/definition/garbage-in-garbage-out)). That's why it's essential for companies to carefully evaluate and implement a stellar automated invoice data capture solution.\n\n**At a minimum, your automated invoice data capture solution should:**\n\n- Handle any type of invoice format, including emails, paper invoices, or electronic invoices, including PDF, CSV, and XLS files.\n- Seamlessly integrate into your AP workflow solution.\n- Provide secure and complete end-to-end statistics and reporting.\n- Provide secure audit trails, ensure transparency, minimize the risk of fraud, and ensure compliance with policies and legislation.\n- Capture line item details helping to increase true end-to-end automation.\n- Require minimal user training, ensuring speedy adoption and implementation.\n- Provide a robust, comprehensive library of [knowledge base](https://quandarycg.com/knowledge-base/) articles.\n- Have a dedicated customer support staff along with a streamlined ticketing system.\n- Allows for and optimizes mobile automated data capture of invoices and other AP-related documents.\n- Require minimal IT maintenance.\n\n## Use Case Scenarios for Invoice Data Capture\nLet's look at [three separate use cases](https://community.aiim.org/blogs/kevin-neal/2012/06/08/capture-begins-with-process) of automated invoice data capture.\n\n### Use Case #1: Expense receipt capture from mobile phone\nSarah is a traveling business person for the company who travels only occasionally. She has only two or three receipts per month. \n\nUnfortunately, Sarah has no access to a scanner. She has to scan her receipts on her smartphone to the expense management portion of the automated invoice data capture solution. \n\nThe solution must be able to capture the following from her receipts:\n- Date\n- Establishment\n- Tip\n- Total\n- Type\n\nAdditionally, it must be able to create new categories and validate vendors. This is in addition to expense reporting and expense management.\n\n### Use Case #2: Expense receipt capture from mobile phone\nBob is a warehouse worker who must scan multiple packing lists with many line items to a [Materials Requirements Planning (](https://www.cips.org/knowledge/procurement-topics-and-skills/operations-management/material-requirements-planning/)MRP) system. Bob also adds items to inventory and starts the pre-pay discount process.\n\nThe inventory management of the automated invoice data capture must record the following:\n- Packing List #\n- Supplier\n- Delivery Date\n- Line Items\n- Totals\n\nIt must be able to add new suppliers and items and report stock amounts and replenish inventory levels.\n\n### Use Case #3: Remote Office Worker\nKhiara is a remote office worker who processes several invoices at once. \n\nThe automated invoice data capture solution needs to automatically kick off the payment workflow, verify the accuracy, and [eliminate duplicate payments](https://quandarycg.com/accounts-payable-automation-benefits/). It will specifically capture:\n- Invoice #\n- Vendor\n- Received Date\n- Terms\n- Total\n\nIn addition, it should create new vendors, verify the supplier, perform invoice management, and provide detailed business analysis.\n \nIn all of these use case scenarios, the automated invoice data capture solution must be robust enough to not only capture these structured, semi-structured, and unstructured documents but also:\n- Properly classify receipt of the document.\n- Strategically extract data.\n- Verify/validate the integrity of data.\n- Transform images.\n- Export the data.\n\nAn automated invoice data capture solution should also:\n- Reduce invoice data capture costs from day one of implementation.\n- Notice accounts payable enhancements and improvements immediately.\n- Provide visibility in day-to-day Invoice Processing.\n- Instantly gain a scalable accounts payable workflow.\n- Drastically reduce time in effort in future audits.\n\n![](https://images.pexels.com/photos/3153201/pexels-photo-3153201.jpeg?auto=compress&cs=tinysrgb&w=1260&h=750&dpr=2)\n\n## What are some Automated Invoice Capture Myths and Mistruths?\nDespite the obvious benefits of automated invoice capture solutions, many companies are wary of implementing a solution due to many myths and mistruths. Instead, they kick the can down the road, putting off the investment into better systems. As a result, they miss out on automation's strategic and financial benefits.\n\n**Myth 1: We'll lose control over our process.**\n_Truth:_ Automated data invoice capture solutions provide greater control over your AP processes.\n\n**Myth 2: It’s not more efficient.**\n_Truth:_ [Studies show](https://www.ironmountain.com/ca/en/resources/whitepapers/1/5-myths-about-accounts-payable-automation-debunked) automated data invoice capture solutions result in a 90-95% reduction in paperwork and a 25% improvement in labor productivity.\n\n**Myth 3: It's too expensive.**\n_Truth:_ Automated data invoice capture solutions are scalable to business sizes catering to a wide range of budgets.\n\n**Myth 4: We're too big (or small) for it.**\n_Truth: _ Part of the appeal of cloud-based solutions, including automated invoice data capture solutions, is they are multi-tiered. They can provide solutions to a huge swath of clients, scaled to the size of the client. (This is no truer than with low-code solutions.)\n\n**Myth 5: It takes too long to implement.**\n_Truth:_ Using the low-code approach, automated data capture solutions are developed more rapidly than traditional turnkey approaches.\n\n## How to Automate Invoice Data Capture\nAutomated invoice data capture is no longer a thing of the future. It’s here. Right now. Savvy companies worldwide are quickly evaluating these solutions and implementing them into their day-to-day operations even as you read this. You need to act.\n\nWhile you can purchase a turnkey solution, the challenge is that you'll need to fit your business needs to the technology. On the other hand, custom solutions can be cost-prohibitive and riskier. Still, you must streamline your invoice data capture process to stay competitive by reducing costly menial tasks. \n\nThe solution is to build the applications you need using [low-code](https://quandarycg.com/low-code-guide/). Low-code platforms are visual interfaces used to streamline application development. Plus, as a SaaS solution, costs scale with your business. In short, you can build custom apps for much less, far faster using low-code. \n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-c4a8cac2-4a96-5b64-b99d-43236ff640d5","title":"Supply Chain Automation on a Budget (Improve Your ROI)","publishedAt":"2022-04-14T10:00:00.000Z","_createdAt":"2022-04-15T10:48:12Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/6ea64e53ee2d2e22bc0ed4be502c6052df6c04fc-6000x4000.jpg?w=6000&h=4000&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/6ea64e53ee2d2e22bc0ed4be502c6052df6c04fc-6000x4000.jpg?rect=0,3,6000,3994&w=320&h=213&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/6ea64e53ee2d2e22bc0ed4be502c6052df6c04fc-6000x4000.jpg?w=654&h=436&auto=format 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Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 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You're not alone if your business experienced (or is still experiencing) supply chain issues. \n\nAs of June 2021, it’s estimated that [over 80%](https://www.businesswire.com/news/home/20210621005532/en/Global-Warehouse-Automation-Robots-Technologies-and-Solutions-Market-Report-2021-2030---ResearchAndMarkets.com) of the warehouses today have no automation solution. _Worse yet, only 5% use sophisticated supply chain automation solutions and equipment..._\n\nIt’s not surprising, then, that in [a 2020 Ernst & Young LLP survey](https://www.ey.com/en_us/supply-chain/how-covid-19-impacted-supply-chains-and-what-comes-next), respondents reported that serious disruptions in the wake of COVID with 57% saying they were affected and 72% reporting negative impacts. More so, 17% reported a significant negative effect and 55% said that the impact was mostly negative.\n\nCaught off guard during the pandemic, most organizations learned a hard lesson and many intend not to experience that level of disruption (or the stress involved) again.\n\nAutomation continues to be [a growing trend](https://quandarycg.com/procurement-trends-to-embrace/) for supply chains looking to dodge the crippling slow downs and price hikes caused by the pandemic. \n\nThis guide will show you how to transform your supply chain into an agile, lean operation. And it'll show you how to transform your systems and processes on a budget. \n\n## What Is Supply Chain Automation?\nSupply chain automation is the leveraging of digital technologies to streamline processes, improve efficiencies, lower operational costs, and connect legacy applications. It's about reducing manual tasks, bottlenecks, and waste with integrated systems and automated solutions.\n\nA supply chain automation solution [streamlines processes](https://quandarycg.com/procurement-automation-services/) using:\n- Artificial Intelligence\n- Digital Process Automation\n- Machine Learning\n- Robotic Process Automation\n- Automated procurement systems\n- Other forms of integration and automation\n\nThe ultimate objective of any supply chain automation solution is to create an integrated, systematic flow of money, materials, and information in the supply chain ecosystem. Key players in this solution include retailers, manufacturers, distribution centers, fabricators, and the final customer or consumer.\n\n## The Need for a Supply Chain Automation Solution\nA comprehensive supply chain automation solution is vital to the success of your organization. \n\nAs mentioned earlier, the chaos and disruption of supply chains during the pandemic exposed the deficiencies caused by manual processes and data siloes found in most company around the world.\n\nThe benefits of implementing supply chain automation include:\n- Simplifying and consolidating the supply chain processes and systems\n- Automating away menial tasks\n- Increasing agility to better handle unexpected situations\n- [Improving compliance](https://quandarycg.com/procurement-risks-and-how-to-navigate-them/)\n- Maximizing employee productivity\n- Minimizing human errors\n- [Reducing costs](https://quandarycg.com/how-to-identify-and-significantly-reduce-procurement-costs/) of supply chain operations\n- Increasing on-time deliveries\n- Easing employee workloads\n- Reducing environmental impact\n- Significantly gaining more actionable data\n- Measuring [performance KPIs](https://quandarycg.com/critical-vendor-management-kpis/) in real-time\n- Increasing overall chain supply capacity\n\nAs you can see by the long list of benefits, a comprehensive supply chain automation solution is vital to the success of an organization. \n\nThe challenge is choosing the right solution.\n\n![](https://images.pexels.com/photos/277593/pexels-photo-277593.jpeg?auto=compress&cs=tinysrgb&w=1260&h=750&dpr=2)\n\n## How to Choose a Supply Chain Automation Solution\n\nThere are five factors to consider when choosing a supply chain automation solution for your organization: integration, ease of use, scalability, and reporting. Here are each of them in detail:\n\n1. **Integration**: Will the supply chain automation solution easily and [seamlessly integrate](https://quandarycg.com/quandary-connect/) with your company’s legacy systems?\n2. **Ease of Use**: Is the supply chain automation solution intuitive? Can your organization’s employees learn the software with minimal time and training?\n3. **Scalable**: Can the supply chain automation solution grow and evolve with your company?\n4. **Reporting**: Does the supply chain automation solution have the necessary analytics to provide your organization’s key players with the necessary information to make logistic decisions? Is it easily accessible in real-time?\n5. **Service**: Does the supply chain automation solution have proper documentation? A knowledgebase? Who can you call when trouble occurs?\n\nYou don't have the best solution if any of these elements are missing. Instead, you have another application or tool that may help improve your supply chain in some ways, but it'll still slow you down (and potentially cost you more) in the long-run. \n\n## 3 Ways to Implement Supply Chain Automation Solutions\n\nThere are three approaches your organization can take when implementing a supply chain automation solution. \n\n1. You can purchase a turnkey, commercial solution. These [out-of-the-box solution](https://www.predictiveanalyticstoday.com/top-supply-chain-management-software/) are your Oracle SCM, Watson Supply Chain, SAP solutions. \n2. You can build a custom solution in house. This will be your most expensive and time-consuming approach, but it will directly fit the needs of your business.\n3. You can outsource development to a vendor. You can work with on-shore or off-shore application developers to build a solution within your budget. Results vary and depend on the vendor you choose.\n\nLet’s look at each of these and the advantages and disadvantages. \n\nDo keep in mind that with all three approaches outlined below, the golden rule of _**[Caveat Emptor](https://www.investopedia.com/terms/c/caveatemptor.asp)**_ applies.\n\n### Out-of-the-Box Supply Chain Automation Solution\n\n#### Advantages:\n- Flawless integration across modules such as material management and accounting.\n- The modular design enables the implementation of only necessary functionalities.\n- Adaptability and flexibility scale with your business as it grows and revolves.\n- Greater efficiency and accuracy with order taking and fulfillment resulting in high customer satisfaction.\n- [Real-time reporting and visibility](https://quandarycg.com/vendor-data-management/) are possible because of centralized data storage.\n- Eliminate discrepancies and conflicts among different enterprise systems with a [single source of truth](https://www.mulesoft.com/resources/esb/what-is-single-source-of-truth-ssot#:~:text=A%20single%20source%20of%20truth%20(SSOT)%20is%20the%20practice%20of,via%20a%20single%20reference%20point.) (SSOT).\n\n#### Disadvantages:\n- The complexity of software requires technical expertise to administer.\n- Employee training and ramp-up time puts a significant dent in the organization’s budget.\n- Startup costs are higher depending on the number of customizations needed.\n- One size does not fit all.\n- Extensive configuration is required to adequately align with business processes.\n\n### In-House Custom Supply Chain Automation Solution\n\n#### Advantages:\n- Customization and flexibility.\n- Absolute control over features and capabilities.\n- Only pay for what you need. (Unlike a commercial solution, organizations aren't stuck paying for included modules they'll never use.)\n- Easy and immediate access to developers.\n- Ability to test processes with real operations.\n- The investment becomes an asset: the organization owns the product.\n\n#### Disadvantages:\n- Logistic organizations lack the inbuilt processes, procedures, the knowledge, and expertise to develop and maintain quality solutions.\n- Ultimately more expensive with organizations miscaluclating development costs and often going over budget.\n- Long development times and maintenance costs, driving up costs even more over the long-run.\n- [Software developers are in demand](https://www.daxx.com/blog/development-trends/software-developer-shortage-us), making it hard (and expensive) to find and maintain the intellectual resources needed to build these products out. \n- Inadequate architecture due to logistics companies still using antiquated equipment and old, outdated operating systems. \n\nTo create an in-house supply chain automation solution, organizations need the latest technologies: computers, OSs, servers, and development tools. They need access to talent. And they need the budget and timeline to stand up these solutions. \n\n### Outsourced Custom Supply Chain Automation Solution\n\n#### Advantages:\n- Cost reduction.\n- More flexibility with manufacturing and capacity.\n- Lower labor costs.\n- Capital does not need to be invested in machinery or plant capacity.\n- Focus on other business aspects.\n- Meet customer needs.\n- Results can [exceed expectations depending on the vendor](https://quandarycg.com/case-studies/).\n\n#### Disadvantages:\n- Loss of control over the process.\n- Partnering with the wrong supplier can put you more at risk.\n- Solution may not match the exact needs of the business.\n- Unanticipated costs.\n- Potential for setbacks.\n- Integration difficulties.\n- Potential reduction in quality.\n\nWhat's the best choice? \n\nChoosing the best fit strategy for developing your supply chain automation solution is like most other aspects of businesses: the answer depends.\n\nIf you're a large organization with a large IT budget, then you might develop a custom application to automate your supply chain in-house. But not necessarily. And if you're a small or mid-sized company, you might lean toward outsourcing development or purchasing a turnkey solution.\n\nRegardless of the size, many businesses struggle with balancing automating systems with their budget. \n\nWhile it's true that transforming the way work gets done in your business is an investment, it doesn't necessarily need to be expensive.\n\n![](https://images.pexels.com/photos/3184325/pexels-photo-3184325.jpeg?auto=compress&cs=tinysrgb&w=1260&h=750&dpr=2)\n\n## How to Automate Your Supply Chain on a Budget\nBy outsourcing your supply chain automation to an experienced, reputable consulting firm that utilizes a [low-code approach](https://quandarycg.com/low-code-guide/) to developing a supply chain automation solution, you don't have to spend seven figures to get the customs solution you need to stay competitive.\n\nLow-code allows you to get enterprise-level results without the enterprise-level price tag.\n\n### Specific advantages include:\n- Seamless integration across modules.\n- Modular design.\n- Scalable adaptability and flexibility.\n- Real-time reporting and visibility.\n- Error reduction.\n- Cost reduction and decreased inefficiencies.\n- More time for employees to focus on mission-critical tasks.\n- Customized solution that fits your exact business needs.\n- Only pay for what you need: Costs scale as your business grows. \n- You own the code and solution.\n\nSo, how do you find a low-code developer to build these custom supply chain automation solutions for you? _You need to choose wisely..._\n\nIf you don't research your consultants properly, you'll work with [vendors who overpromise and underdeliver](https://quandarycg.com/myths-and-misconceptions-about-consulting/). And in the end, you'll be out of time and money while still struggling with inefficiencies.\n\nImplementing a comprehensive, scalable, robust, effective, and affordable is not only a possibility with a consulting firm that uses the low-code approach to development. It’s a reality. Want to know how?\n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.\n","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-4a92f28f-6843-5562-9f86-6013ea221d9f","title":"How and When to Use Tactical Sourcing to Grow Your Business","publishedAt":"2022-04-15T15:00:00.000Z","_createdAt":"2022-04-07T10:49:39Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/939c5c813c24d1915544d8a3e4b83629ac3c45e6-1280x853.jpg?w=1280&h=853&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/939c5c813c24d1915544d8a3e4b83629ac3c45e6-1280x853.jpg?rect=0,1,1280,852&w=320&h=213&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/939c5c813c24d1915544d8a3e4b83629ac3c45e6-1280x853.jpg?w=654&h=436&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/939c5c813c24d1915544d8a3e4b83629ac3c45e6-1280x853.jpg?w=768&h=512&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/939c5c813c24d1915544d8a3e4b83629ac3c45e6-1280x853.jpg?w=1024&h=682&auto=format 1024w,\nhttps://cdn.sanity.io/images/55lcecww/production/939c5c813c24d1915544d8a3e4b83629ac3c45e6-1280x853.jpg?w=1280&h=853&auto=format 1280w","sizes":"(min-width: 1280px) 1280px, 100vw"}},"layout":"constrained","width":1280,"height":853,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"how-and-when-to-use-tactical-sourcing-to-grow-your-business"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"The main procurement goal in most businesses is [cost reduction](https://quandarycg.com/how-to-cut-costs-while-increasing-efficiency-in-your-business/). More businesses are transitioning to strategic procurement, giving them the edge. And while that’s a far more effective approach to procurement than focusing solely on reducing costs, it’s not your only option. With tactical sourcing, you can find better prices for services or products.\n\nThe key is knowing what tactical sourcing is, how to use it, and when it takes priority over strategic sourcing. \n\n## What Is Tactical Sourcing? \nTactical sourcing is a procurement strategy that relies on short-term goals focusing on purchasing products quickly for a good price. \n\n**Think of it as finding the best product at the best time for the best price.**\n\nTactical sourcing differs from [strategic sourcing](https://quandarycg.com/what-is-strategic-procurement/) in that it focuses on finding immediate solutions aligned to current procurement goals. Strategic sourcing is a lot more planned out. Its goal is to support overall business goals by aligning its procurement actions and strategies to those goals. \n\nAdditionally, smaller organizations use tactical sourcing more often. Specifically, manufacturing and production business or businesses that do not have a [streamlined procurement process](https://quandarycg.com/benefits-of-procurement-automation/). This is mainly because it allows them to reduce costs while securing goods and services quickly. Still, it can be a vital strategy in any business.\n\nThere’s a time and a place for both. Knowing when to use tactical sourcing is key to helping you reduce your procurement costs even further. \n\n## Example of When to Use Tactical Sourcing\nAs the procurement officer for your company, you balance many tasks. You need to keep costs low, [maintain vendor relationships](https://quandarycg.com/vendor-relationship-management/), track payment data, avoid mistakes, and secure goods and services for your business. \n\nYou may have a [procurement management playbook](https://quandarycg.com/the-procurement-management-strategic-playbook/) that you go by, and your business may or may not be in the process of following the trend of transforming your procurement processes into a strategic business function.\n\nIn the meantime, you’re always on the lookout for deals and opportunities that can [reduce procurement costs](https://quandarycg.com/procurement-cost-savings/) and expand your bottom line. \n\nYou hear that a supplier is going out of business, has a surplus, or simply wants to move product and offers discounts on materials. You know that your business will use these materials, and buying them now means getting that discount. You’ve done the math and [considered warehousing fees and storage risks](https://exclusive.multibriefs.com/content/understanding-the-costs-of-warehousing/distribution-warehousing). You reach out to the vendor and make the purchase.\n\nIn this case, you will have saved your business a significant amount on the goods or services due to the discount. And you’ll continue looking for opportunities like this in the future. \n\nAlternatively, you may simply need a good or service that was unanticipated. As a result, you survey the market to find the best, more affordable products or services. In either scenario, it's a reactive (vs. a proactive) approach.\n\n![](https://cdn.pixabay.com/photo/2020/10/01/17/11/store-5619201__340.jpg)\n\n## Tactical Sourcing vs. Strategic Sourcing\nTactical sourcing and strategic sourcing are both purchasing strategies that companies use in their procurement efforts. They are quite different in their approaches, and the one you choose to employ depends on the situation. Knowing the difference between both will help you figure out when to use them.\n\n### Tactical Sourcing\nTactical sourcing is a short-term purchasing strategy. With tactical sourcing, you base purchasing decisions on very few factors. Specifically, you focus on price and delivery dates. \n\nRather than considering the benefits of the purchase to the organization, you focus on making a purchase that works for the moment of need. \n\nBecause you focus more on need, Tactical sourcing tends to be more reactive than proactive. That’s why smaller organizations tend to rely on it more. They usually don’t have the resources or supplier choices to map out a complex procurement network as larger organizations do. And they [face more challenges](https://www.sdcexec.com/sourcing-procurement/sourcing-solutions/news/21992956/skynova-small-businesses-impacted-by-global-supply-chain-issues).\n\nFor example, let’s say that your company is low on a particular product and you need to replenish it by the end of the week. You don’t have time to do the usual research on vendors, so you simply find the vendor with the best price and who can deliver the product by the end of the week. \n\nThis will cut down on your buying choices. But considering the time constraints, you can’t be choosy. You need to act. So, you make the tactical sourcing choice and come out on top.\n\n### Strategic Sourcing\nStrategic sourcing is a long-term purchasing strategy. Strategic sourcing bases its purchasing decisions on the [total cost of ownership](https://www.investopedia.com/terms/t/totalcostofownership.asp). This considers the entire amount of money the company will spend on the product, not just the price. It also considers the benefits of the purchase to the organization.\n\nStrategic sourcing tends to be more proactive than reactive. You have more control over the process rather than the process controlling you. Larger organizations use this approach more frequently because they have numerous resources and a wide choice of suppliers to rely on. \n\nFor example, if your company is low on a particular product in this instance, you [analyze your vendor data](https://quandarycg.com/critical-vendor-management-kpis/) and see if there’s a cheaper option available. If not, you can leverage the weight of your business and existing relationships to negotiate lower prices. \n\nYou wouldn’t rush to the cheapest vendor. Instead, you’d need to make sure your purchasing decisions align with your business's overall procurement goals and established practices. \n\nThis is easier for larger businesses because they have access to [enterprise procurement systems](https://www.trustradius.com/procurement), real-time supply chain data, and a team ready to analyze and find the best solution. They can move quicker and with better insights. And with the weight of the purchasing power of their business behind them, they can have more [leverage in supplier negotiations](https://quandarycg.com/procurement-negotiation-how-to-make-it-a-win-win/). \n\n![](https://cdn.pixabay.com/photo/2020/05/21/18/43/pros-5202088_1280.jpg)\n\n## Pros and Cons of Tactical Sourcing\nWhile tactical sourcing can be an effective sourcing strategy, there are pros and cons to using this strategy. \n\n### Pros\n- **It takes care of immediate needs**: You have to act fast when there is a sudden need for something. Tactical sourcing is best when you need immediate results.\n- **There is very little decision-making**: The most important decisions are the product price and the delivery time.\n- **It doesn't require large amounts of resources**: Tactical sourcing works well for smaller companies that may not have the resources to devote to extensive planning and research. \n- **It doesn't require large amounts of planning**: You’re not going to do market research when using tactical planning. Just get a good price and get it delivered quickly. \n\n### Cons\n\n- **No time for market research**: You have to curtail all the research you may normally do. The missing information and data can easily lead to higher costs. \n- **Not focused on building a relationship with the vendor**: The goal is to get the product at the best cost and quickly as possible. This does not afford time for you to negotiate with the vendor to build a long-term relationship. \n- **No time to negotiate for better terms**: The time crunch causes you to miss out on possible negotiations that could result in a better long-term deal. \n- **It might not result in the best price**: You don’t have time to consider many different vendors and may have to choose from only a few. And if they know you are in a rush, they may upcharge you. \n\n## Short Term Gains vs. Long-Term Wins\nIf used wisely, tactical sourcing is a practical and sometimes necessary procurement strategy. It can help you reduce costs and keep operations going. But, it’s not your only option.\n\nIf tactical sourcing is winning the battle and strategic sourcing is winning the war, the two go hand in hand. You can’t win the war without first winning the battles. \n\nThat’s why you shouldn’t overlook tactical sourcing. There’s room for tactical and strategic sourcing in a company’s procurement plan. Understanding when to use both simply gives your business a bigger edge. \n\nStill, utilizing strategic procurement requires better systems. Without streamlined procurement solutions, you won’t have access to the real-time data you need to build a strategic plan for purchasing and sourcing in your organization.\n\nUnfortunately, many turnkey procurement solutions are priced out of reach for small, growing businesses. And custom solutions are even more expensive. Luckily, you have options. [Leveraging the benefits of low-code](https://appian.com/low-code-basics/benefits.html), you can build custom procurement automations that streamline processes and give you the necessary data to build a strategic procurement process. \n\nWe know because we’ve helped growing businesses make that happen. \n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-cc5bde1b-870b-5db6-a983-ba1901a74812","title":"Planning and Forecasting During Ocean Shipping Disruptions","publishedAt":"2022-11-29T16:00:00.000Z","_createdAt":"2022-11-30T10:50:34Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/bf58a3ec17f06a94ac7461dd8d49aa6dad264aaf-1920x1280.jpg?w=1920&h=1280&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/bf58a3ec17f06a94ac7461dd8d49aa6dad264aaf-1920x1280.jpg?rect=0,1,1920,1278&w=320&h=213&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/bf58a3ec17f06a94ac7461dd8d49aa6dad264aaf-1920x1280.jpg?w=654&h=436&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/bf58a3ec17f06a94ac7461dd8d49aa6dad264aaf-1920x1280.jpg?w=768&h=512&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/bf58a3ec17f06a94ac7461dd8d49aa6dad264aaf-1920x1280.jpg?rect=1,0,1919,1280&w=1024&h=683&auto=format 1024w,\nhttps://cdn.sanity.io/images/55lcecww/production/bf58a3ec17f06a94ac7461dd8d49aa6dad264aaf-1920x1280.jpg?rect=1,0,1919,1280&w=1366&h=911&auto=format 1366w,\nhttps://cdn.sanity.io/images/55lcecww/production/bf58a3ec17f06a94ac7461dd8d49aa6dad264aaf-1920x1280.jpg?rect=1,0,1919,1280&w=1600&h=1067&auto=format 1600w,\nhttps://cdn.sanity.io/images/55lcecww/production/bf58a3ec17f06a94ac7461dd8d49aa6dad264aaf-1920x1280.jpg?w=1920&h=1280&auto=format 1920w","sizes":"(min-width: 1920px) 1920px, 100vw"}},"layout":"constrained","width":1920,"height":1280,"placeholder":{"fallback":"data:image/jpeg;base64,/9j/2wBDAAYEBQYFBAYGBQYHBwYIChAKCgkJChQODwwQFxQYGBcUFhYaHSUfGhsjHBYWICwgIyYnKSopGR8tMC0oMCUoKSj/2wBDAQcHBwoIChMKChMoGhYaKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCj/wAARCAANABQDASIAAhEBAxEB/8QAGQAAAgMBAAAAAAAAAAAAAAAAAAUCAwQI/8QAIRAAAwACAgEFAQAAAAAAAAAAAQIDAAQRIQUGEhQxQYH/xAAWAQEBAQAAAAAAAAAAAAAAAAADAgX/xAAYEQADAQEAAAAAAAAAAAAAAAAAAhEBEv/aAAwDAQACEQMRAD8AlqtKFij+5QqkEDrs/uU+e0KeU9KWalaVrMFgXHB6zVDeKbifJjPYJIILDjg/zHU6nZnsh1UB0PIA6y2WA7HXcOdWmQxGGOPJ6yT37ov0HOGLDE7h/9k="}}}},"slug":{"current":"planning-forecasting-during-ocean-supply-chain-disruption"},"author":{"id":"-949fcda6-1564-5019-9b04-7ee4becfea9c","name":"David L. Buss","image":{"asset":{"_id":"image-9e6c84892dd1a4bdb5764c565bb6b29007a596f5-936x749-png","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/9e6c84892dd1a4bdb5764c565bb6b29007a596f5-936x749.png?w=936&h=749&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/9e6c84892dd1a4bdb5764c565bb6b29007a596f5-936x749.png?w=320&h=256&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/9e6c84892dd1a4bdb5764c565bb6b29007a596f5-936x749.png?w=654&h=523&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/9e6c84892dd1a4bdb5764c565bb6b29007a596f5-936x749.png?rect=1,0,935,749&w=768&h=615&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/9e6c84892dd1a4bdb5764c565bb6b29007a596f5-936x749.png?w=936&h=749&auto=format 936w","sizes":"(min-width: 936px) 936px, 100vw"}},"layout":"constrained","width":936,"height":748.9999999999999,"placeholder":{"fallback":"data:image/png;base64,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"}}}}},"body":"## Why Planning and Forecasting Are More Important During Ocean Shipping Supply Chain Disruptions \n\nIt's no secret that the COVID-19 pandemic caused widespread disruptions to global supply chains. These disruptions impacted all industries, with many businesses being forced to adjust their operations—or shut them down altogether.\n\nOne of the most affected industries has been global supply chains, specifically those focused on ocean shipping. \n\nThe container shipping industry already faced pre-pandemic challenges, such as overcapacity and low rates. But the pandemic exacerbated these issues, leading to even [more challenges](https://www.weforum.org/agenda/2022/09/5-challenges-global-supply-chains-trade/) for businesses that rely on ocean shipping to move their goods.\n\nFor businesses to overcome these challenges, it is more important than ever to have a well-defined planning and forecasting strategy in place.\n\n## The State of Global Container Shipping\n\nToday's economic landscape is complex, to say the least. And the container shipping industry is no exception.\n\nIn recent years, the container shipping industry has been plagued by container shortages, backlogs, and delays. [These conditions](https://resources.coyote.com/source/supply-chain-challenges) have created a ripple effect regarding warehouse storage capacity, labor pools, and other critical areas of logistics and transportation.\n\nWhile there has been some bounceback since the early days of the pandemic, the container shipping industry still faces significant challenges. \n\n**These challenges include:**\n- Decreases in global trade\n- Increased container costs\n- Unpredictable freight rates\n- Longer lead times and delays\n\nReliability of container shipping suffered greatly, with businesses being forced to contend with canceled sailings, longer transit times, and other unexpected delays. These challenges led to [increased costs and decreased profits](https://www.bloomberg.com/news/features/2022-01-18/supply-chain-crisis-helped-shipping-companies-reap-150-billion-in-2021) for many businesses that rely on ocean shipping.\n\nWhat makes things even more challenging is that there is [no clear end in sight](https://www.cnbc.com/2022/08/22/peak-freight-season-is-underway-theres-no-end-in-sight-for-congestion.html) for the backlog that was generated in early 2020. \n\nThis backlog is expected to continue well into the next few years. \n\nAnd industries are on their toes to ensure that they will have the resources necessary to weather any future storms in global shipping.\n\n## Planning and Forecasting Solutions\n\nAs the container shipping industry [continues to face challenges](https://nowthatslogistics.com/whats-ahead-in-2022-for-ocean-shipping/), businesses that rely on ocean shipping must adjust their operations accordingly. One of the best ways to do this is by investing in planning and forecasting solutions.\n\nForecasting allows businesses to anticipate future trends and challenges, allowing them to make necessary adjustments to their operations. \n\nThis is especially important in today's climate, where the future of global shipping is unpredictable.\n\n## Benefits of Forecasting for Ocean Shipping\n\n### More Time and Less Stress\n\nAbrupt changes and crises can happen quickly. Virtually every business [needs to be adaptable](https://quandarycg.com/process-improvement-statistics/). But with logistics and many moving parts in the supply chain, any disruption has a ripple effect that can impact every aspect of an organization. \n\n[Forecasting future trends](https://quandarycg.com/procurement-trends-to-embrace/) allows businesses more time to react and make necessary changes. \n\nThis extra time can be the difference between keeping your business running or shutting down operations. It also allows you to maximize internal resources and avoid last-minute scrambling.\n\nWhen you can anticipate problems, you can take steps to prevent them or at least mitigate their impact. \n\nGetting ahead of problems instead of reacting to them can lead to less stress for you and your team. This is because you don't have to react constantly to unexpected challenges.\n\n### Better Customer Satisfaction\n\nIf you can anticipate customer trends, you can adjust your operations accordingly and take advantage of strategies like [tactical sourcing](https://quandarycg.com/how-and-when-to-use-tactical-sourcing-to-grow-your-business/). For example, you can stock more of the products your customers demand or change your shipping routes to accommodate their needs. \n\nYou can also reduce revenue losses by avoiding stockouts and delays while building stronger relationships with your partners.\n\nCustomers are the lifeblood of any business. It's essential to keep them happy. \n\nInvesting in forecasting minimizes the chances of [disruptions to your supply chain](https://quandarycg.com/overcoming-supply-chain-disruption/) that could lead to delays or errors. As a result, you’ll avoid tarnishing the customer experience and diminishing customer satisfaction for your business.\n\n### Improved Cost Efficiency\n\nForecasting ensures you don’t purchase too much or too little inventory, maximizing your resources. It also allows you to [streamline your ordering process](https://quandarycg.com/what-is-purchase-order-automation/), consolidate container shipments, and optimize your shipping routes to make your shipping more efficient overall. \n\n[These cost-saving measures](https://quandarycg.com/how-to-cut-costs-while-increasing-efficiency-in-your-business/) can have a significant impact on your bottom line.\n\n## Improving Your Forecasting for Ocean Shipping (3 Ways)\n\nThere can be a [great deal of uncertainty](https://www.nibusinessinfo.co.uk/content/challenges-sourcing-overseas) when acquiring your products overseas. \n\nForecasting is essential to help reduce the risk of disruptions to your business. However, you can do a few things to improve your demand planning when navigating longer lead times.\n\n### 1. Allow More Lead Time\n\nWhen procuring from overseas, it's important to have a solid understanding of all of the potential risks and challenges that could impact your supply chain and cause delays. \n\nThis includes everything from supplier reliability to geopolitical risks.\n\nOnce you've identified these risks, you should evaluate the best and worst-case scenarios for each. And you should calculate the total amount of time you'll need to procure your products in these scenarios. \n\nDepending on the risk, you may need to adjust your lead time accordingly to get deliveries out on time.\n\nAs a general rule (based on recent supply chain disruptions), you should allow a generous buffer on top of your typical lead time. \n\nThis is especially true if you're dealing with materials or supply shortages. \n\nIn the end, this will help to ensure that you have the products you need when you need them, even if there are delays along the way.\n\n### 2. Be Aware of Peak Periods\n\nThere are [certain times of the year](https://www.freightos.com/freight-resources/beating-peak-season-blues-shipping-freights-busiest-season/) when global shipping is more likely to face disruption. These peak periods typically coincide with major holidays, such as Chinese New Year or Christmas.\n\nIf you're planning on shipping during these periods, it's important to be aware of the risks and plan accordingly. This could mean placing your orders earlier than usual or working with a freight forwarder that has experience shipping during peak periods.\n\nIn addition, it's important to be aware of any regional holidays that could impact your shipments. \n\nFor example, in South America, many countries have a long holiday period in December and January. If you ship to this region during this time, you may need to adjust your lead time to account for the increased risk of delays and higher shipping volume.\n\n### 3. Leverage Data and Technology\n\n[Several data and technology tools](https://quandarycg.com/procurement-automation-services/) can help you improve your forecasting. This includes everything from market intelligence platforms to intermodal solutions that track your shipments in real-time.\n\n[Utilizing these tools](https://www.getapp.com/transportation-logistics-software/shipping/f/demand-forecasting/) can help you better understand the global shipping market and make more informed decisions about your supply chain. Many of these tools offer features that can help you automate your forecasting process. \n\nThis can [save you time and resources](https://quandarycg.com/benefits-of-procurement-automation/) that could be better spent on other areas of your business.\n\nIt's also important to stay informed about the latest disruptions in the market. This could be anything from a hurricane that impacts port operations to a strike that delays shipments. \n\nBy being aware of these disruptions, you can adjust your forecast accordingly and avoid any potential disruptions to your business.\n\n## Improve Your Forecasting and Demand Planning Processes\n\nForecasting is an essential process for businesses that rely on overseas suppliers. Thankfully, there you have ways to reduce risk and costs to your organization: \n- Allowing more lead time\n- Being aware of peak periods\n- Leveraging data and technology tools\n- Improving your forecasting and demand planning processes\n\nBy following the abovementioned strategies, you can reduce the risk of disruptions to your supply chain. This will empower your business to better serve customers without using up resources. \n\n\n\n> **Author Bio:**\nDavid is CEO of [DB Schenker](https://www.dbschenker.com/usa) USA, a 150 year old leading global freight forwarder and 3PL provider. David Buss is responsible for all P&L aspects in the United States, which is made up of over 7,000 employees located throughout 39 forwarding locations and 55 logistics centers.","shortDescription":"It's no secret that the COVID-19 pandemic caused widespread disruptions to global supply chains. ","categories":[{"title":"Procurement"}]}},{"node":{"id":"-e59c8796-b715-52c2-9deb-23e9b06bf6a1","title":"10 Key Procurement Goals to Achieve in 2024","publishedAt":"2024-01-19T06:00:00.000Z","_createdAt":"2022-01-14T20:22:17Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/f4fe2e2ac7037b0fe4945830901f0084db7062a0-2000x1513.jpg?w=2000&h=1513&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/f4fe2e2ac7037b0fe4945830901f0084db7062a0-2000x1513.jpg?w=320&h=242&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/f4fe2e2ac7037b0fe4945830901f0084db7062a0-2000x1513.jpg?rect=1,0,1999,1513&w=654&h=495&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/f4fe2e2ac7037b0fe4945830901f0084db7062a0-2000x1513.jpg?w=768&h=581&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/f4fe2e2ac7037b0fe4945830901f0084db7062a0-2000x1513.jpg?rect=1,0,1999,1513&w=1024&h=775&auto=format 1024w,\nhttps://cdn.sanity.io/images/55lcecww/production/f4fe2e2ac7037b0fe4945830901f0084db7062a0-2000x1513.jpg?rect=0,1,2000,1512&w=1366&h=1033&auto=format 1366w,\nhttps://cdn.sanity.io/images/55lcecww/production/f4fe2e2ac7037b0fe4945830901f0084db7062a0-2000x1513.jpg?w=1600&h=1210&auto=format 1600w,\nhttps://cdn.sanity.io/images/55lcecww/production/f4fe2e2ac7037b0fe4945830901f0084db7062a0-2000x1513.jpg?w=1920&h=1452&auto=format 1920w,\nhttps://cdn.sanity.io/images/55lcecww/production/f4fe2e2ac7037b0fe4945830901f0084db7062a0-2000x1513.jpg?w=2000&h=1513&auto=format 2000w","sizes":"(min-width: 2000px) 2000px, 100vw"}},"layout":"constrained","width":2000,"height":1513,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}},"slug":{"current":"10-key-procurement-goals-to-achieve"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"As a procurement professional, your goal is to help your organization get the most out of its purchasing power while reducing overall risks to the organization. This is not an easy task. The key to being successful is setting the right procurement goals. \n\nBut what types of goals should you be setting as a procurement professional? Even though each business is uniquely different, there are certain guidelines you should follow to transform procurement into a more successful and strategic asset. \n\n**These 10 procurement goals will get you there.**\n\nDepending on your resources, the maturity of your organization, and leadership's attitude toward procurement, you may only be able to aim for a few of these. Or, you might be able to knock them all out. \n\nEither way, accomplishing even just one of these goals will put your procurement process in a better place than it is right now. And that’s a big win.\n\n## 1. Leverage More Technology to Reduce Costs and Waste\nIf you’re not (at the very least) automating certain aspects of your procurement process already, you’re behind. Setting procurement goals and achieving them requires time and resources. But if you’re running around manually approving invoices, you’ll be stuck running around putting out fires instead. \n\nLuckily, investing in better systems doesn’t mean your business has to risk going broke on expensive procurement upgrades. Using [low code](https://quandarycg.com/low-code-guide/), you can automate many of your procurement processes far cheaper and far faster than expensive custom builds. \n\nImagine this: A simple automated workflow that collects requisition orders, submits POs, collects approvals, conducts QA, [issues invoices](https://quandarycg.com/how-invoice-automation-works/), and stores all the financial data for easier reporting and tracking.\n\nThis is not a pipedream. Nor is it a luxury only available to enterprise organizations. \n\nBy investing in process improvements, you can get the time, resources, and (most importantly) accurate data you need to reach other procurement goals. \n\n## 2. Develop a Better Understanding of Your Supply Chain\nHow does your organization fit into the global supply chain? If you can’t answer that question, it makes it harder for you to prove to leadership that your department is a critical component to the overall success of your organization. \n\nBut it’s true. \n\nProcurement is about more than [cost savings](https://quandarycg.com/how-to-cut-costs-while-increasing-efficiency-in-your-business/). Was your business impacted by recent [supply chain disruptions](https://quandarycg.com/overcoming-supply-chain-disruption/)? Imagine what position you could be in now if you had the insights needed to adjust your supply chain before problems hit. \n\nHow much more competitive would your organization be right now if they had ensured deliveries while keeping costs low during that global disruption?\n\nAt a basic level, you can conduct a simple [SWOT analysis](https://www.mindtools.com/pages/article/newTMC_05.htm) on your procurement process and supply chain. You can also conduct [environment scanning](https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/basics-of-environmental-scanning.aspx), analyzing customer purchase trends, technology shifts, potential political disruption, and other scenarios.\n\nThe more accurate data you have and the more time you have to analyze it, the better position your organization will be in. Instead of reacting to change, you can proactively shift your supply chain around to minimize risk and disruption.\n\n![](https://cdn.pixabay.com/photo/2019/08/15/17/56/production-4408573_1280.jpg) \n\n## 3. Maximize Your Spend\nThere are a lot of different ways you can [maximize spend in your organization](https://quandarycg.com/procurement-cost-savings/). \n\nEvaluate the cost of the goods and services you purchase against their quality to ensure that you’re not overpaying for goods. Or, paying less but purchasing more often…\n\nAnd there are a lot of ways to reduce your overall spend as well. Are you getting vendor discounts (bulk order, early pay, etc.)? Are your purchases consolidated to reduce delivery costs? Is your [tail spend](https://www.fairmarkit.com/blog/what-is-tail-spend-and-how-can-we-manage-it) under control?\n\nBy maximizing your cost savings, you’ll give your organization more resources to [invest in better systems](https://quandarycg.com/procurement-automation-services/) that make everyone’s lives easier. \n\n## 4. Clean Up Your Data\nData is everywhere. But more isn’t necessarily better. And if you're tracking vital customer data across multiple spreadsheets and other data siloes, you most likely dealing with the information that’s simply wrong. \n\nFrom overpaying vendors to misunderstanding customer needs, dirty data puts your organization at greater (unnecessary) risk.\n\n[Automating your procurement process](https://quandarycg.com/benefits-of-procurement-automation/) helps consolidate your data. You can integrate disparate systems, reducing the need for spreadsheets. And you can transform your reporting into clear, accurate data dashboards that give you real-time insights. \n\n## 5. Position Procurement to Support Overall Business Goals\nProcurement should function as the backbone for your business goals. It's a strategic process. The data collected from the supply chain, vendors, and customers is critical to developing the strategies needed to guide a business to success. Not to mention, an organization’s purchasing power helps it remain competitive. \n\nThe more closely aligned procurement is with the overall mission of the business, the more leadership will lean on its procurement team for critical insights. \n\nTo make that happen, you need to collect the right insights. \n\nMonitor markets and trends. Pay attention to pricing. Note any potential shortages of critical components. And share any potential risks or disruptions that could impact the supply chain. The more you can help your business see its place in the marketplace and identify any potential obstacles, the better your positioning.\n\nThese insights and support will help transform how your organization sees its procurement process. As a result, you can better position procurement as an integral part of your business.\n\n![](https://images.pexels.com/photos/1181406/pexels-photo-1181406.jpeg?auto=compress&cs=tinysrgb&dpr=2&w=500)\n\n## 6. Aim to Work with Leadership Earlier On\nLeadership often takes a backward approach to procurement. They design a project, make promises to partners and customers, and build out roadmaps for completion first. After, they give their procurement department the task of getting it done. \n\nThis is the wrong approach. \n\nIt opens up the business to unnecessary risk. Leadership may overlook aspects of their supply chain or development, for example. They may overpromise on deadlines, features, or costs. \n\nAdditionally, it puts unnecessary pressure on the procurement team. Now, they have to figure out how to make it all happen while juggling other responsibilities. \n\nInstead, push for a seat at the table early on in the project development cycle. Have the data and insights ready to share on your supply chain (vendors, pricing, limitations, etc.). \n\nBy working with leadership early on in the process, you’ll help ensure you’re meeting your customers’ expectations without overtaxing your vendors or going over budget. \n\n## 7. Better Understand and Reduce, Eliminate, or Avoid Risk\n[Risk is everywhere](https://quandarycg.com/procurement-risks-and-how-to-navigate-them/) in your supply chain. You can’t always avoid it. But you can understand it and mitigate it. \n\nNowadays, CEOs are [more likely to lose their jobs](https://www.strategyand.pwc.com/gx/en/insights/ceo-success.html?utm_campaign=sbpwc&utm_medium=site&utm_source=native) due to unethical conduct than poor business performance. Ethical business practices matter more to customers now than ever before. \n\nThe same is true for sustainability. In fact, [61% of customers](https://www.smurfitkappa.com/us/newsroom/2020/new-research-reveals-conscious-consumerism-will-keep-sustainability-a-top-priority-for-businesses) expect sustainable business practices. Going green isn’t a luxury. It’s essential.\n\nIt’s not just environmental and ethical risks you need to worry about either. Cyber security attacks on the supply chain [are becoming more common](https://www.zdnet.com/article/supply-chain-attacks-are-the-hackers-new-favourite-weapon-and-the-threat-is-getting-bigger/).\n\nYour goal should be to build out the systems, procedures, and data needed to analyze risk in your supply shain. Both internal and external.\n\n![](https://cdn.pixabay.com/photo/2021/04/06/19/20/balance-6157258_1280.jpg)\n\n## 8. Build Better Vendor Relationships\nBuilding a network of mutually beneficial relationships with your vendors will ensure you remain competitive in an increasingly unpredictable marketplace. \n\nBy working closely with your vendors, you can reduce costs, improve the quality of your goods, and get more on-time deliveries. As a result, you’ll become a more dependable business for your customers. It’s a win-win for everyone involved.\n\n[Vendor relationship management](https://quandarycg.com/vendor-relationship-management/) is tricky. It starts by choosing the right vendors. Next, you need to set a baseline of [KPIs to evaluate their performance](https://quandarycg.com/critical-vendor-management-kpis/). After, you'll work with them to ensure they meet those goals. \n\nThe key is to avoid adversarial relationships and instead focus on how you can work together to ensure everyone wins.\n\n## 9. Adapt Procurement Best Practices\nIs your procurement process [best practice](https://quandarycg.com/what-are-procurement-best-practices/)? Achieving best practice doesn’t happen overnight. You need to actively work at it over time. \n\nYou also need buy-in from leadership because they’ll need to invest in better systems to help streamline how purchasing happens in your organization. \n\nStill, don’t feel the need to run out and try to adapt every best practice overnight. Instead, you need to be realistic. If you’re only adopting one or two best practices right now, aim to add one or two more by the end of the year. \n\nBut which ones do you focus on? \n\nAim for the ones that [significantly reduce procurement costs](https://quandarycg.com/how-to-identify-and-significantly-reduce-procurement-costs/). The more resources you can save your organization, the more they’ll have to reinvest in better systems that can further streamline purchasing.\n\n## 10. Seek Out More Professional Development\nProcurement is a complex business process that’s constantly evolving. Not only is your supply chain constantly changing, but you also have new disruptive technologies appearing every day. Additionally, you need to develop your soft skills as well. \n\nThe key to helping your organization succeed with its procurement process is to never stop educating yourself. \n\nTake the time to learn more about new trends (socio-demographic, customer, ecological, political, technological, and more). Learn about new technologies like low code, automation, artificial intelligence (AI), [Robotic Process Automation (RPA)](https://www.automationanywhere.com/rpa/robotic-process-automation), and more. Don’t neglect your [soft skills](https://www.cips.org/knowledge/procurement-topics-and-skills/people-and-skills/soft-skills/) either: leadership, negotiation, communication, and more. \n\nMake it your goal to be a sponge, soaking up everything you can about procurement. The more you learn, the more of an asset you can be to your organization. \n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.\n","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-6e4a92a1-b715-5b87-98d9-8c631237652a","title":"20+ Accounts Payable Automation Best Practices for 2024","publishedAt":"2024-03-06T08:00:00.000Z","_createdAt":"2022-02-04T08:12:23Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/8c7e6f9d6ceea9b3c901319332f241a86e147b9b-2000x1610.jpg?w=2000&h=1610&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/8c7e6f9d6ceea9b3c901319332f241a86e147b9b-2000x1610.jpg?rect=2,0,1997,1610&w=320&h=258&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/8c7e6f9d6ceea9b3c901319332f241a86e147b9b-2000x1610.jpg?rect=0,1,2000,1609&w=654&h=526&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/8c7e6f9d6ceea9b3c901319332f241a86e147b9b-2000x1610.jpg?rect=0,1,2000,1609&w=768&h=618&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/8c7e6f9d6ceea9b3c901319332f241a86e147b9b-2000x1610.jpg?rect=0,1,2000,1609&w=1024&h=824&auto=format 1024w,\nhttps://cdn.sanity.io/images/55lcecww/production/8c7e6f9d6ceea9b3c901319332f241a86e147b9b-2000x1610.jpg?rect=1,0,1999,1610&w=1366&h=1100&auto=format 1366w,\nhttps://cdn.sanity.io/images/55lcecww/production/8c7e6f9d6ceea9b3c901319332f241a86e147b9b-2000x1610.jpg?w=1600&h=1288&auto=format 1600w,\nhttps://cdn.sanity.io/images/55lcecww/production/8c7e6f9d6ceea9b3c901319332f241a86e147b9b-2000x1610.jpg?rect=1,0,1999,1610&w=1920&h=1546&auto=format 1920w,\nhttps://cdn.sanity.io/images/55lcecww/production/8c7e6f9d6ceea9b3c901319332f241a86e147b9b-2000x1610.jpg?w=2000&h=1610&auto=format 2000w","sizes":"(min-width: 2000px) 2000px, 100vw"}},"layout":"constrained","width":2000,"height":1610.0000000000002,"placeholder":{"fallback":"data:image/jpeg;base64,/9j/2wBDAAYEBQYFBAYGBQYHBwYIChAKCgkJChQODwwQFxQYGBcUFhYaHSUfGhsjHBYWICwgIyYnKSopGR8tMC0oMCUoKSj/2wBDAQcHBwoIChMKChMoGhYaKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCj/wAARCAAQABQDASIAAhEBAxEB/8QAFwAAAwEAAAAAAAAAAAAAAAAAAAMEBf/EACIQAAICAgEDBQAAAAAAAAAAAAECAwQAESEFEhMUFjFBQ//EABYBAQEBAAAAAAAAAAAAAAAAAAACA//EABgRAQEBAQEAAAAAAAAAAAAAAAEAIREx/9oADAMBAAIRAxEAPwDTaWys7M8Y8jjQ2u9DJIJ5p7z0442Mw0zHXAGN6h1OP1a+W9qFj2KBxvG9SsCpXdo5TKwAYMOCRgGKcorlCexakkkFjuJ+lwzL90yt+zccfOGX5lnjt//Z"}}}},"slug":{"current":"accounts-payable-automation-best-practices"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"Following accounts payable automation best practices goes beyond avoiding costly mistakes. It's about ensuring you reduce costs, streamline processes, and secure a strong ROI for your investment into new systems. Done properly, your efforts will go a long way to securing the future of your company's bottom line.\n\n## 1. Align Accounts Payable Automation with Business Objectives\nAccounts payable objectives need to match overall business objectives. Not only does this help secure the future success of your business, but it also ensures that your needs won't be deprioritized. As a result, when accounts payable succeeds, the organization does, too. \n\n## 2. Map Out Workflows\nYou won't know how to [improve your processes](https://quandarycg.com/accounts-payable-process-improvement/) and achieve results without mapping out the systems that are in place first. \n\nWhether you whiteboard this out with your team or use [workflow mapping software](https://thedigitalprojectmanager.com/tools/flowchart-software/), this step will help you identify bottlenecks, inefficiencies, and waste. \n\nBusinesses are complicated. And every workflow has tons of exceptions. By mapping out these processes, you can account for these. This will allow your team to build guardrails around exceptions, further streamlining your workflows. \n\n## 3. Discuss Any Improvements with Your Accounts Payable Team\nThere's no point in transforming your accounts payable workflows and implementing new systems if your team [isn't on board.](https://www.apollotechnical.com/why-onboarding-is-important/) You also won't know if you're addressing the root of the problem without their expertise. Consult them early on in the decision-making process to ensure you're building the systems they need. \n\n**Ask your team members**:\n- What do you like about our existing processes?\n- What drives you crazy about our existing processes?\n- What solutions do you think will have the biggest impact?\n- What concerns do you have about implementing changes?\n\n![](https://images.pexels.com/photos/2962135/pexels-photo-2962135.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=650&w=940)\n\n ## 4. Be Prepared to Invest in New solutions\nAny attempt to improve efficiency in your accounts payable department without technology will fall short. Are you automating invoicing? Do you use self-service portals for [easy vendor management](https://quandarycg.com/supplier-management-best-practices/)? Are your procurement systems integrated? You'll need to invest in better systems to streamline your accounts payable workflows.\n\n## 5. Get Leadership to Support Any Changes\nChanging any process can be a challenge. Implementing new technology can make that transition even more complex. The key to the successful implementation and adoption of new technology is for leadership to [support the change](https://www.thebalancecareers.com/executive-support-and-leadership-in-change-management-1917803). \n\nFor that to happen, they should know how any changes will support business goals and achieve a justifiable ROI. Work with key decision-makers individually to show them how new systems will [reduce inefficiencies and waste](https://quandarycg.com/process-improvement-cut-waste-and-improve-business-efficiency).\n\n## 6. Track KPIs\nKey performance indicators (KPIs) are critical to gauging the success of your efforts. Start by collecting a baseline of any process. Afterward, track those accounts payable KPIs as you [automate purchasing](https://quandarycg.com/automate-purchasing-in-your-business/) to evaluate success. This will help your team keep an eye on what's important as they move forward with process improvements. \n\n**Key accounts payable performance metrics to track**:\n- Cost to process each invoice \n- Number of invoices\n- Number of invoices processed \n- Number of invoice errors\n- Discounts captures\n- Discounts missed\n- Invoice cycle time\n\nFor more on Invoice Metrics, [read this post](https://quandarycg.com/key-invoice-metrics-that-matter/).\n\n![](https://images.pexels.com/photos/7948055/pexels-photo-7948055.jpeg?auto=compress&cs=tinysrgb&dpr=1&w=500)\n\n## 7. Establish Standard Operating Procedures\nSoPs will help streamline your processes by removing the guesswork. Best practice here involves leveraging accounts payable software solutions to establish a system of guardrails for daily activities. From processing invoices to tracking shipments to evaluating vendors, you'll speed up workflows with defined systems.\n\n## 8. Centralize Accounts Payable Data\nIf you're still relying on paper documents in filing cabinets, spreadsheets, and stacks of binders to manage your accounts payable data, you're behind the times. You need a centralized system for data management. By capturing and storing your critical documents digitally, you make them more accessible and secure.\n\nThis includes scanning paper invoices, creating templates for contracts, tracking and managing vendor information, and more. The goal should be to eliminate paper where possible. \n\nWith a centralized system for your accounts data, you'll reduce risk to your organization. At the same time, you'll increase the transparency of your supply chain. All that's left is keeping your information current to avoid fraud or errors. And accounts payable software solutions make that easy. \n\n## 9. Use Self-Service Vendor Portals\nDo you have a self-service vendor portal? If not, you need to implement one. These systems allow vendors to update their details, monitor shipments and submit invoices while reducing the likelihood of errors with ease. Plus, you can track vendor performance to [ensure contract compliance](https://quandarycg.com/procurement-contract-management-best-practices/) and improve relationships.\n\n## 10. Maintain Vendor Relationships and Communication\nHalf of managing AP effectively is managing people. Your vendors are critical to your business. And it's important to have strong relationships with them. That way, they can support any changes you make to AP workflows in your organization. Don't hesitate to ask them for feedback on ideas and new solutions. \n\n**Important**: Don't forget to keep your vendors in the loop. Your suppliers shouldn't find out after the fact. This will ensure a smoother transition. \n\n![](https://images.pexels.com/photos/4481256/pexels-photo-4481256.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=650&w=940)\n\n## 11. Submit New Invoices Immediately\nAs soon as you receive an invoice, it should go into your system. This ensures invoices don't get lost, reducing the potential for late fees. [Invoice automation](https://quandarycg.com/how-invoice-automation-works/) makes this easy. All you need to do is [scan the invoice](https://docparser.com/blog/invoice-scanning/) or collect the digital version and verify that the details are accurate. \n\n## 12. Balance Cost Savings with a Focus on ROI\nYou need to balance cost reduction while still focusing on the potential ROI from improving your systems. You will need to invest in technology to capture the benefits of automation. But not every workflow you improve will yield [a justifiable ROI](https://www.frevvo.com/blog/roi-of-workflow-automation-c/). Focus on key areas where you can see a clear ROI first, like invoice automation.\n\n**Important**: Don't sacrifice potential efficiencies for [cost savings](https://quandarycg.com/how-to-cut-costs-while-increasing-efficiency-in-your-business/). You may save a few pennies in the budget, but you'll miss out on the dollar returns better systems can provide.\n\n## 13. Automate Strategically\nAvoid the urge to automate everything at once, especially if you're transitioning from multiple manual systems. Instead, think strategically. Which areas can you automate that will have the highest return for the least investment? Start there. \n\n[This will reduce the risk](https://quandarycg.com/procurement-risks-and-how-to-navigate-them/) while giving your team time to learn from the process. It'll also give the major players time to adjust to new workflows and processes. As a result, you'll be better equipped to launch new automations with less difficulty in the future. \n\n## 14. Put Someone in Charge of Improvements\nYou need an AP Automation Manager to be accountable for each automation project. This will be the contact point for progress, challenges, and successes with each new project. Their goal should be to reduce bottlenecks and get new automations live faster while keeping leadership informed.\n\n## 15. Don't Neglect UX\nYou don't need the most beautiful interface. However, you don't want a system that looks dated or is hard to use, either. People expect there to be [some level of design](https://uxmag.com/articles/the-future-of-enterprise-design-is-consumer-grade-ux) that makes the experience more pleasant. Give them that and users will be more willing to adapt to your new systems. \n\n**Important**: Don't neglect mobile. It's important to ensure your users can easily access your applications on mobile devices. Remove the need to scroll, make icons bigger, try to limit requests per screen, and embrace other mobile features (like notifications and fingerprint sign-ins). Site speed is critical as well.\n\n![](https://images.pexels.com/photos/35550/ipad-tablet-technology-touch.jpg?auto=compress&cs=tinysrgb&dpr=1&w=500)\n\n## 16. Focus on Continuous Improvement\nContinuously look for ways to improve your accounts payable workflows. Run [AP audits](https://www.freshbooks.com/hub/accounting/auditing-accounts-payable) regularly to evaluate your performance. Assess risk. Track progress toward goals. Look for opportunities to eliminate steps and automate inefficiencies. \n\nRemember to prioritize simplicity. Simple is better as it reduces the likelihood of errors, fraud, and slowdowns. \n\n## 17. Leverage Low Code\nNew systems mean more costs, but that doesn't mean you need to burn through your IT budget. [Low code](https://quandarycg.com/low-code-guide/) is a great alternative to traditional application development. You can rapidly build, test, and deploy custom applications using a visual interface. As a result, you can build the automations and integrations you need more affordably. \n\nDon't feel as though you have to invest in a cookie-cutter, turnkey solution. You're likely to end up paying more for features your business doesn't need. Worse, you'll be forced to adjust your practices to fit your software. And that limits what you can do as an organization. \n\nAlternatively, low code empowers you to build the exact workflows your business needs. [Integrate the apps you have](https://quandarycg.com/everything-you-need-to-know-about-integrations/). Build the ones you need. Plus, it's a SaaS platform. That means [costs scale with use](https://www.quickbase.com/plans-and-pricing), making AP automation much more approachable than expensive enterprise solutions.\n\n## 18. Integrate Your Applications\nEliminate manual data entry where you can. While there are a lot of great applications out there that can enhance your business, they don't always speak to each other. [Resist the urge](https://appsilon.com/excel-is-obsolete-here-are-the-top-2-alternatives-from-r-and-python/) to use spreadsheets to move data between these systems. Instead, integrate them. You'll benefit from real-time, more accurate data.\n\n## 19. Collect Tax Information Digitally\nMany accounts payable automated solutions collect vendor tax information during the onboarding process. This allows you to issue, collect, and store 1099 forms with ease. These systems are tax compliant, so they provide the guardrails and reminders you need to stay compliant with your accounting department. \n\n![](https://images.pexels.com/photos/6863244/pexels-photo-6863244.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=650&w=940)\n\n## 20. Have Contingencies in Place\nAutomated solutions can fail because they're a system. And any system can fail when its infrastructure fails. Cloud-based applications [have downtime](https://www.crn.com/news/cloud/index/cloud-outages-cloud-services-downtime.htm). Power outages happen. Bugs can crash applications. The key to success is to be prepared for when these events happen, so you can mitigate damage and continue operating.\n\n**Important:** People can break down workflows, too. Your team should be trained on multiple systems so their absence doesn't stop your processes. And there should be alternative team members in place for approvals to keep things moving as well.\n\n## 21. Support Remote Work\nPre-COVID, remote work was a perk. Now, it's [essential to operations](https://www.happeo.com/blog/8-reasons-why-your-company-needs-remote-work). As the workplace environment has shifted to remote work, you need to empower your team to carry out their daily tasks from anywhere. Your workflows and the systems you use should support a remote team while keeping sensitive data secure\n\n## 22. Stay Flexible\nFollowing accounts payable, best practice requires a level of flexibility. You're testing out, implementing new solutions, and evaluating new systems. You also need to onboard your team and adapt. That involves a lot of change management. Stay flexible and positive about change by focusing on the end goal: overall improvement.\n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.","shortDescription":null,"categories":[{"title":"Procurement"}]}},{"node":{"id":"-75b09e9d-3dbb-5ecf-a664-c6eb44e87bf4","title":"13 Best Procurement Practices to Boost Sourcing in 2024","publishedAt":"2024-04-18T15:00:00.000Z","_createdAt":"2020-02-25T21:46:39Z","mainImage":{"asset":{"gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/a71b46f82626ba397031ae735b54ab3573c2b7c2-1000x750.jpg?w=1000&h=750&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/a71b46f82626ba397031ae735b54ab3573c2b7c2-1000x750.jpg?w=320&h=240&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/a71b46f82626ba397031ae735b54ab3573c2b7c2-1000x750.jpg?rect=1,0,999,750&w=654&h=491&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/a71b46f82626ba397031ae735b54ab3573c2b7c2-1000x750.jpg?w=768&h=576&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/a71b46f82626ba397031ae735b54ab3573c2b7c2-1000x750.jpg?w=1000&h=750&auto=format 1000w","sizes":"(min-width: 1000px) 1000px, 100vw"}},"layout":"constrained","width":1000,"height":750,"placeholder":{"fallback":"data:image/jpeg;base64,/9j/2wBDAAYEBQYFBAYGBQYHBwYIChAKCgkJChQODwwQFxQYGBcUFhYaHSUfGhsjHBYWICwgIyYnKSopGR8tMC0oMCUoKSj/2wBDAQcHBwoIChMKChMoGhYaKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCj/wAARCAAPABQDASIAAhEBAxEB/8QAGAAAAgMAAAAAAAAAAAAAAAAAAAcDBQb/xAAfEAADAQABBAMAAAAAAAAAAAABAgMABgQFESEiQlH/xAAWAQEBAQAAAAAAAAAAAAAAAAADBAX/xAAfEQACAQIHAAAAAAAAAAAAAAABAgADYQQFEhQVITH/2gAMAwEAAhEDEQA/ANV3HnHSScitSx1YeeSPkrNyg+wGWXWA0qWY+dHOjzRkVviw9jUPgwoGj28zqeZKWIqdC0bE+WTsgdX9HGWkaIJgIzKPzGfaU4HItP/Z"}}}},"slug":{"current":"what-are-procurement-best-practices"},"author":{"id":"-765e4c81-f3b0-5ed3-b290-cae32bdad35b","name":"Kevin Shuler","image":{"asset":{"_id":"image-214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745-jpg","gatsbyImageData":{"images":{"sources":[],"fallback":{"src":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format","srcSet":"https://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?rect=1,0,861,745&w=320&h=277&auto=format 320w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=654&h=565&auto=format 654w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=768&h=664&auto=format 768w,\nhttps://cdn.sanity.io/images/55lcecww/production/214de3faacf7010e5e2e27dcb14f3a8ddcbc7358-862x745.jpg?w=862&h=745&auto=format 862w","sizes":"(min-width: 862px) 862px, 100vw"}},"layout":"constrained","width":862,"height":745,"placeholder":{"fallback":"data:image/jpeg;base64,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"}}}}},"body":"## How to Streamline Purchasing in Your Organization\nAs the costs of running a business continue to rise and vulnerabilities in supply chains become more apparent, more organizations are realizing the importance of improving their procurement process.\n\n**This goes beyond cost reduction.**\n\nInstead, it's about transforming your supply chain into a critical asset that you can use to grow your business. The key to getting to that point faster is by following these 13 best procurement practices. \n\nThis roadmap will help you see how you can start taking the steps necessary to improve efficiency, reduce waste, and gain more strategic insights into your sourcing. \n\nIf your organization is still following manual procurement processes (like invoicing, reporting, and [vendor management](https://quandarycg.com/critical-vendor-management-kpis/)), then you need to read this post. The potential ROI for streamlining purchasing in your organization cannot be understated.\n\n## 1. Build Procurement Management Frameworks\nBefore you can start addressing any inefficiencies in your procurement process, you need to establish a strong procurement management framework. \n\nIf you don’t already have a procurement management framework in place or your existing one hasn’t been revisited in a while, you need to take a step back and look at how sourcing functions in your organization. \n\n**Your procurement management framework should establish guidelines for:**\n- Monitoring and approving purchase requests\n- Managing vendors and [procurement negotiation](https://quandarycg.com/procurement-negotiation-how-to-make-it-a-win-win/)\n- Conducting [three-way match](https://www.avidxchange.com/blog/3-way-matching/) and quality assurance\n- Invoicing and payment\n- Record keeping\n- Hiring new buyers and purchasing agents\n- Training employees on products\n\nMake no mistake, this is not an overnight process. You’ll need to dive into your procurement processes, map out workflows, and build out standard operating procedures. \n\nIn fact, it’s such an extensive process, we put together [an entire playbook on how to do it right](https://quandarycg.com/the-procurement-management-strategic-playbook). **(You need to check this out.)**\n\nStaying best practices with procurement processes requires a well-developed management framework in place. **DO NOT** skip this step. \n\n### How to Ensure Transparency in Procurement:\n- **Plan and implement strategic procurement policies:** Create a procurement strategy to maximize ROI, and share these rules with everyone in your organization.\n- **Properly document every step of the process:** Always write down key information about the progression of every order. The more data, the better.\n- **Manage and update the approved supplier lists often:** Keep contact information of reliable sellers while staying on the lookout for new contacts and opportunities.\n- **Create fool-proof procurement contracts:** [Create comprehensive contracts](https://quandarycg.com/procurement-contract-management-best-practices/) and store them electronically so using them is as simple as drag, drop, and complete.\n- **Conduct audits frequently:** Hold even the most reliable suppliers to high standards. Evaluate their performance regularly to ensure they’re meeting your demands at competitive rates.\n\n![](https://res.cloudinary.com/quandary-consulting-group/image/upload/c_scale,h_1005/v1630481492/How_to_Ensure_Procurment_Transparency_jb7gyt.jpg)\n\n## 2. Optimize Your Inventory\nAn often-overlooked area in the procurement process is not managing current inventory efficiently. Controlling spend and maintaining bottom lines while managing stock and intake can be a daunting challenge. \n\nKeeping inventory at an optimal level is one of the best procurement practices. Planning purchase quantities to minimize waste while delivering on customer expectations is a careful balancing game. \n\nIt’s worthwhile to remember that holding inventory for long periods of time can jeopardize ROI. The cost of warehouse fees, taxes, obsolescence, and insurance add up over time. Your inventory should rotate smoothly and regularly, lowering your overall risk and unnecessary expenses.\n\n## 3. Engage Suppliers\nBuilding a solid relationship with suppliers is vital to your organization’s success. Essential product delivery and routine maintenance are key components to running a business strategically. \n\nBut ensuring vendors deliver reliable, high-quality goods and services on time (and at the best rate) requires a strategic relationship with your suppliers. \n\nYou need to have better insight into your suppliers, so you can track performance and evaluate relationships. With more data on vendors' performance, you can engage them in a meaningful way that will ensure your business needs are being met. \n\n### How to Engage Suppliers Strategically to Secure Procurement\n- **Maintain clear, open communication:** Clearly communicate purchase orders and requirements to your supplier. Have a system in place to ensure the delivery of invoices.\n- **Establish expectations early:** Leverage your knowledge of the market so you can hold your vendors to that standard. \n- **Evaluate vendor performance regularly:** By evaluating the quality of goods and services delivered, you ensure your company receives the best value for its investment.\n- **Pay vendors on time:** Leverage your company's ability and desire to pay quickly. Your vendors will prioritize your company if you prioritize theirs. \n- **Stay aware of the competition:** Knowing your vendor markets and how your supplier compares to the competition also ensures that your company gets the best.\n-**Provide Self-Service Portals:** With a self-service portal, your vendors can submit invoices, proposals, and contracts. Plus, you can easily communicate with them directly on the platform, sending or receiving critical notifications/alerts.\n- **Provide Vendor Dashboards:** Track vendor performance against contracts and ensure your vendors provide consistent service. Compare and switch vendors easily.\n\n## 4. Use Digital Contract Management\nContract management is at the heart of the procurement cycle. Purchase orders, invoicing, and reviews all come with a trial. But this trial doesn’t always have to be paper. \n\nBy moving the contract management process to the cloud, companies can minimize risk and maximize transparency. The cloud allows for a centralized and easily accessible system that can save your organization money while storing your procurement documents safely. \n\nThere’s [a variety of software available](/the-top-5-procurement-software-for-your-business) for contract management on the market. These vary by design or services provided. \n\nFind the one that fits your business needs the best. \n\n## 5. Automate Your Procurement\nInefficient procurement costs businesses $1.5B annually. Efficiency will save your business time and money, giving you time to focus on your customers. \n\nAs a result, customer satisfaction increases. But to reach levels of efficiency that will yield a substantial ROI, you need to [automate your procurement process](https://quandarycg.com/procurement-automation-services/).\n\nEvery company that wants to maximize growth while scaling needs every single advantage it can get. With customizable applications and strategy technologies available, your business can [easily automate systems](/workflow-integration). \n\nAutomation minimizes repetitive operational processes, giving your employees more time to contribute strategically to the growth of your business.\n\nThere are immediate benefits to automation as well. \n\nWithout the human component in data entry, costly errors can be avoided. Employee satisfaction improves with streamlined workflows. And your organization can save money with strategic sourcing. \n\n**Here are 3 critical processes to automate:**\n\n### 1. Payment Reconciliation\nWith automated bank and sales reconciliation, you’ll give your team more time to focus on strategic initiatives rather than processing each transaction manually.\nReconciliation automation compares your accounting against your payments, ensuring they match. As a result, you secure your cash flow with ease.\n\n### 2. Accounts Payable\n[AP Automation](https://quandarycg.com/accounts-payable-automation-benefits/) allows you to automate invoice processes using machine learning and artificial intelligence. AP Automation platforms streamline everything from invoice coding to purchase orders and three-way matching.\n\nAs a result, you can effectively manage most of the AP process without direct human interaction.\n\nAP platforms [capture invoice data](https://quandarycg.com/what-is-invoice-data-capture-and-how-to-automate-it/) in a digital format and store it in an accessible, centralized database. They use technologies like optical character recognition, intelligent document processing, and fuzzy logic to capture unstructured data and translate it into values that can move seamlessly between your procurement systems.\n\n### 3. Invoicing\nWhile technically under the scope of AP automation, [invoice automation](https://quandarycg.com/how-invoice-automation-works/) is a complex process and can be an entire area of its own.\n\nIn short, invoice automation pulls invoice data into the accounts payable system where it can be processed. Invoice automation platforms handle:\n- Price matching\n- Approvals\n- Data entry\n- Purchase order management\n- Invoice processing\n\nBy automating invoicing, you can reduce late fees, get early payment discounts, and keep your vendors happy with on-time payments. You’ll also avoid double payments and late payments with ease.\n\nPlus, you’ll have clear, accurate insights into real-time budgeting. That way, you keep from going over budget.\n\n## 6. Integrate Procurement Processes\nThe procurement cycle is riddled with approval processes that create barriers. Even if you automate some aspects of your overall procurement process, you'll inevitably hit these gaps in your systems.\n\n**Why?**\n\nBecause people will have to manually transfer data between your disparate procurement systems. Usually, that means spreadsheets. \n\nBudget requests, quality checks, dispatch authorization, all these actions traditionally demand manual action. As a result, your attempts to automate procurement will be \"stop and start\", turning your sourcing process into a system of haphazardly connected workflows riddled with bottlenecks.\n\n**And these bottlenecks cost you time and money.**\n\nIntegrating various procurement processes ensures a smooth, streamlined system from start to finish while reducing bottlenecks. By [connecting your procurement workflows](/workflow-integration), you'll speed up processing time, further ensuring best practices in your procurement strategy.\n\nSystem integration bridges the gaps between various systems. They move data seamlessly from system to system. They also make running quality assurance and verifications across the procurement process much faster. (And they make it possible without manual checks and endless spreadsheets.)\n\n## 7. Prioritize Transparency Across Sourcing\nYour team members need to have the ability to see records, purchase orders, and technical specifications at any stage in their journey in real-time. Without a procurement system that provides that, your teams will remain in the dark.\n\nYou should manage your purchasing, invoicing, and vendor monitoring through a single platform. This ensures open communication and accountability during each stage of procurement, for both buyer and seller.\n\nWith one system, your team will get the data analytics they need to take advantage of discounts, avoid late or double payments, and keep vendors happy. You'll also reduce maverick/dark spending. \n\nTransparency guarantees better record management, strategic purchasing practices, and [procurement cost reduction](https://quandarycg.com/how-to-identify-and-significantly-reduce-procurement-costs/). But you can't make it happen with several disparate systems working incongruently. You need a single procurement platform to make that happen.\n\n## 8. Build Data Dashboards\n \nData dashboards make it incredibly easy for your team to access real-time data on your supply chain in a digestible format. This cuts down on confusion and unnecessary back-and-forth that happens when various departments try to patch data together.\n \nWith clear data dashboarding in procurement, you can showcase accurate spend in relation to budget, price fluctuations on products and services, and vendor performance. As a result, your sourcing will become more agile.\n \nBetter still, real-time data that’s easy to interpret makes collaboration easier. In the end, data dashboarding opens the door for your organization to leverage procurement more strategically.\n\n![](https://cdn.sanity.io/images/55lcecww/production/7e8dfe14205aeee5c37dd92207b296aa1f580a76-1280x2950.jpg)\n\n## 9. Think Beyond “Cost Reduction”\nWhen it comes to procurement, you need to [think strategically](https://quandarycg.com/what-is-strategic-procurement/). Narrowing in on cost reduction is myopic and puts your business at a huge disadvantage. As markets continue to shift and the need to do more with less continues to grow, you need every edge you can get. \n\nStrategic procurement focuses is the best practice of seeing how you can leverage your supply chain to stay ahead of the competition. \n\nWith clear insights into your sourcing, you can leverage vendor relationships for faster and better service. You can also find ways to reduce manual tasks, giving your procurement team more time to focus on value-add activities. Finally, by removing waste, you give your business more resources to innovate.\n\n## 10. Don’t Ignore Corporate Responsibility\nYour customers care about socially responsible sourcing. You need to be mindful of the economic and environmental impact of your supply chain. After all, [88% of people](https://www.forbes.com/sites/solitairetownsend/2018/11/21/consumers-want-you-to-help-them-make-a-difference/) prefer businesses that make a positive effect on the environment or society.\n \nIf your organization fails to meet those expectations, your customers may leave for the competition. Worse, you could permanently damage the reputation of your organization. \n \nThe challenging part about socially responsible sourcing is that supply chains are complex. While your vendors may follow established guidelines of your organization, the companies they work with may not. This is another reason why it’s crucial to have [clear insights into your supply chain](https://quandarycg.com/vendor-data-management/).\n\n## 11. Minimize Risk \nThere are a lot of potential risks in procurement. Unfortunately, most organizations put themselves needlessly at risk by relying on dated, inefficient processes. Best practice for [procurement risk management](https://quandarycg.com/procurement-risks-and-how-to-navigate-them/) is to identify both internal and external risks to your supply chain. \n \n**Once you identify procurement risks, there are four paths you can take:**\n- Ignore risks that pose no real threat\n- Reduce the likelihood of a risk occurring\n- Remove the possibility of a risk occurring\n- Manage risk potential with prepared solutions\n\n## 12. Leverage Robotic Process Automation (RPA) \nRobotic process automation is a growing trend for organizations looking to streamline procurement. RPA is great for rapidly managing transactional-based tasks that are highly repetitive and rule-based. It also provides a very high ROI ([between 30% - 200%](https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/the-next-acronym-you-need-to-know-about-rpa) in the first year.)\n\nBots [are very capable](https://www.uipath.com/rpa/robotic-process-automation). Leveraging AI, these programs can do everything from extracting data to moving files and folders. \n\nThey can even interpret text, engage in conversations, and understand unstructured data. With RPA, you can reduce the time spent on menial tasks, giving your staff more time to focus on vendor relationships or value add activities. \n\n![](https://res.cloudinary.com/quandary-consulting-group/image/upload/v1631176501/1170200_BlogImage_560x315_090821_gzjj4i.jpg)\n\n## 13. Work with Procurement Professionals\nThe procurement process is a dynamic, complex web of systems that overlaps. Deploying improvements can be challenging. \n\nWhere do you start? Which procurement system works best for your business? Where should you automate? What systems can be integrated? And which improvements should be prioritized? \n\nThe difficulties in streamlining the procurement process make it difficult for growing businesses to scale their systems. As a result, they often continue with inefficient, manual processes (using things like spreadsheets and paper invoicing) to handle procurement while putting in critical system upgrades. \n\nAt Quandary Consulting Group, our procurement automation consultants can help you improve your workflows and systems by building custom applications and integrating your disparate systems. \n\n### We build custom, cloud-based procurement solutions using low code that:\n- **Automate Invoicing**: Streamline the entire invoicing process and avoid late fees, overpayments, manual entry errors, and wasted labor.\n- **Purchase Requests and Orders**: Use templated forms and easily track data on one organized platform while automating the issuing, processing, and storing of POs and PRs.\n- **Integrate Procurement Systems**: Reduce the need for spreadsheets to store data from disparate systems, removing risk and waste from manual data entry.\n- **Provide Real-Time Spend Analytics:** Get real-time data insights through an accessible dashboard and never waste time scrubbing data again.\n\nAs experts in procurement and low code, we can build exactly what you need. Whether you want to streamline a single workflow in your procurement process or your entire supply chain, we give growing businesses an alternative, affordable solution to the 7-figure custom, enterprise solutions.\n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.","shortDescription":"With competition as fierce as it is, your company needs every advantage it can get. And waste, especially from something as avoidable as the procurement process, isn’t going to cut it. 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Knowing the [latest trends](/procurement-trends) and onboarding the best procurement software can reduce your costs and present new opportunities for your growing business. \n\nBut, there are A LOT of procurement solutions out there. So, which one's the best for your business?\n\nThese are the top 11 best procurement software you should consider if you're looking to better scale your growing business. Choose one of the solutions below if you want to [reach your procurement goals](https://quandarycg.com/10-key-procurement-goals-to-achieve/) this year.\n\n## The Best 11 Procurement Software in 2024\n\nTo make it easier for you to choose the right procurement software, here are the top 10 platforms on the market today. \n\nThese software solutions provide everything your business needs to streamline your procurement process, [cutting costs and increasing efficiencies](/how-to-cut-costs-while-increasing-efficiency-in-your-business) in your business. \n\n### 1. Tradogram\n\nIf you’re looking for a top-rated, e-procurement software solution, then look no further than [Tradogram](https://tradogram.com/). With an endless list of businesses that have already adopted it, you have the social proof you need to add it to your company’s application stack. \n\nNo matter the size of your organization, Tradogram can improve your procurement process with custom management support across multiple locations and departments. Spend management functionalities make it easy to forecast cost issues, analyze expenditures, and review supplier management.\n\nThere are numerous tools you can use to automate your POs, RFQs/RFPs, Contracts, Requisitions, and invoicing. As a cloud-based app, you get enhanced mobility and security. Data flows easily between modules, giving you clear insights into up-to-date reports.\n\nThis accessible system supports quick onboarding with its easy-to-use interface. As a result, you can automate many areas of your procurement process quickly and efficiently. \n\n\n\n\n### 2. Fraxion\n\n[Fraxion](https://www.fraxion.biz/) is a cloud-based procurement software solution for growing businesses. It can help you better [manage your procurement process](/what-are-procurement-best-practices) by providing accurate reporting, proactive spend management, and complete control over each step of your procurement process (from requisition to payment processing).\n\nFraxion is a cloud-based, procure-to-pay solution trusted by businesses around the world for automating their procurement processes. The platform empowers users by [automating your procurement workflows](/automating-workflows). \n\nWith multi-level approvals, AP, spend analysis, vendor management, and everything in between, Fraxion can help your team transform your procurement process. It also lets you manage travel expenses, analyzes budgets, and audit your procurement process to ensure compliance.\n\nFraxion integrates with several ERP systems and is perfect for organizations that need to proactively manage their procurement processes and spending.\n\n\n\n### 3. Pipefy for Procurement\n\n[Pipefy for Procurement](https://www.pipefy.com/procurement-software/) acts as a visibility and communication layer that connects disparate systems and activities to [streamline the purchasing process](https://quandarycg.com/automate-purchasing-in-your-business/). It facilitates communication and helps teams make time for smarter sourcing.\n\nPipefy for Procurement bridges the gap between core systems like Coupa, SAP, NetSuite, and DocuSign, enabling full visibility and transparency of each purchase requisition for both requestors and buyers and allowing better communication among teams, internal clients, and vendors. \n\nAll while reducing costs. \n\nIn fact, Pipefy allows approvers and requesters to use the platform for free. That’s why [BASF](https://www.basf.com/hu/hu.html) chose Pipefy and replaced emails and spreadsheets with a streamlined process that saved them 2,400 working hours a year. Plus, it also boosted their teams’ productivity and efficiency.\n\n\n\n### 4. GEP SMART\n\n[GEP SMART](https://www.gep.com/software/gep-smart) is a world-leading source-to-pay software solution that empowers you with complete control over your procurement process. Led by artificial intelligence, this cloud-based platform provides powerful spend analysis, savings tracking, contract management, and clear insight into sourcing.\n\nAdditionally, you can easily manage your vendors from a single platform. Supplier management, [contract management](https://quandarycg.com/procurement-contract-management-best-practices/), and project analysis help you clearly evaluate performance and better rate your vendors. \n\nGEP SMART supports both direct and indirect procurement processes, helping you improve efficiency. It also unifies upstream sourcing and downstream procurement to help you transform your sourcing into a strategic process. \n\nUsers can customize their dashboards for better reporting that can be easily shared among your team. GEP SMART cleans and validates your data from all sources in your system. \n\nAs a result, you can leverage detailed insights to guide your team and find new opportunities. With a clearer picture of your purchasing process, you can make better, more informed decisions.\n\n\n\n### 5. Procurify\n\n[Procurify](https://www.procurify.com/) is another cloud-based procurement solution that can help you centralize your processes, reduce waste and optimize your spending. This platform helps businesses track, manage, and control spending easily. \n\nWith Procurify, you can centralize your purchasing data on one platform, rather than trapping information in several disconnected silos. This streamlines your operations by reducing menial tasks and manual data entry errors. \n\nYou’ll get real-time reporting, so you can effortlessly track your requisitions, POs, and expenses. And you can empower your team to manage their spending with approval guardrails. Team communication remains centralized on the platform, ensuring no messages get lost in the busy day-to-day activities.\n\nThis accessible system reflects the shopping process of major e-commerce sites and integrates to many ERP platforms easily with its API function. It’s also incredibly mobile with native iOS and Android apps. As a result, it scales with your growing business as your number of applications, team members, and locations increases.\n\nProcurify also provides a Knowledge Base for their platform, providing users with expert guidance on setting up the platform and getting the most out of it. They also provide detailed support with quick turnaround times on tickets.\n\n\n\n### 6. Kissflow Procurement Cloud\n\n[Kissflow's procurement software](https://kissflow.com/) is a flexible solution for businesses looking to upgrade from manual or dated processes to streamlined, automated solutions. This cloud-based solution leverages [the power of low-code](https://quandarycg.com/low-code-guide/) to empower users to build lean solutions without a background in coding. This allows for more customization in your solutions.\n\nFor example, you can set up several procurement processes that require conditional approvals from key players in your organization and let the automation manage the rest. From simple approval processes to multistep, complex workflows, Kissflow delivers. As a result, you can reduce approval bottlenecks, ensuring on-time purchases and payments. \n\nKissflow’s easy-to-use procurement platform gives you greater control over your procurement process. Manage and support your vendors and team members. Automate everything: order requisitions, purchase orders, budget tracking, supplier management, approvals, three-way matching, and so much more.\n\nClear data dashboards help organizations make more informed decisions. You’ll get accurate insights into your budget so you can analyze your spending. Additionally, you can customize your dashboards to fit the reporting needs of your organization. \n\nOnboarding is easier because Kissflow is a modular solution that deploys quickly. As a result, your team will experience minimal disruption while they quickly learn the ins and outs of the platform. \n\n\n\n### 7. Procurement Express\n\n[Procurement Express](https://www.procurementexpress.com/) solves all your small business purchasing needs with a quick, easy, paperless app. One simple dashboard automates important processes, reduces reliance on spreadsheets, and gives you real-time access to budgets, orders, and approvals. \n\nNo more wondering who ordered what or taking days trying to reconcile an invoice from a surprise supplier. And no more hunting down whoever signed off on them. Procurement Express manages everything with one seamless app that quickly syncs with your accounts and system.\n\nThe app’s purchase approval process is quick, easy, and fully customizable. With Procurement Express, you can streamline your business procurement operations, establishing a clear chain of command and providing relevant permissions for key players. Alerts notify relevant parties when money leaves the company. Custom spending rules decide who has the final say. \n\nTransform your stack of approval requests into an instant-access digital budget on an accessible, cloud-based procurement platform with Procurement Express.\n\n\n\n### 8. Precoro\n\n[Precoro](https://precoro.com/) is a no-code solution that allows you to optimize procurement processes and streamline spending workflows. Using this flexible and reliable platform, you can eliminate time-consuming manual procedures and human errors.\n\nWith Precoro, you can utilize specific modules and create as many fields as needed based on your business requirements. Automate your approval workflows, manage suppliers, get better control over budgets, track corporate expenses, and receive real-time reports within one platform.\n\n![](https://quandarycg.com/static/a28cdd55328c3308bc60bb3444092f39/ba85c/2nd-image.webp)\n\nYou can collect all your relevant information in one place by connecting Precoro with your ERP and accounting systems (such as NetSuite, QuickBooks, Xero, and others). In short, you get a comprehensive platform that puts together all your financial operations into a much more manageable system.\n\nNo matter your business area, Precoro works as an integral part of procurement and spend management for both SMBs and Enterprises. Plus, each client has a dedicated Customer Success Specialist to help them with any issues. And the application is updated regularly without any additional charge to the users.\n\n![](https://quandarycg.com/static/9eb7f46e9fd87eaa8f8cc3c80848d43d/51e2c/3rd-image.webp)\n\n### 9. Basware\n\n[Basware](https://www.basware.com/en) is a leading provider of Networked Procure-to-Pay solutions with the largest open e-invoicing network in over 180 countries. \n\nTheir cloud-based technology enables enterprises to fully manage their spend, mitigate financial risk, and reduce operating costs through automation. Basware automates aspects of finance, procurement, accounts payable, and accounts receivable processes to transform procurement into a [strategic process](https://quandarycg.com/the-procurement-management-strategic-playbook/) for organizations. \n\nBasware's open technology ecosystem and extensive partner network have helped over 6,500 businesses in 60 countries move towards 100% spend visibility. Ultimately, this has helped enable better business decisions across the board – a concept Basware calls [“Visible Commerce”](https://www.basware.com/en-us/why-basware/visible-commerce/).\n\nAdditionally, the platform offers its customers and suppliers the digital tools and transaction details they need to see all business spend, achieve order control, and build stronger supplier relationships. They believe that every business transaction and purchase should be simple, visible, and quantifiable for better business operations and a better business world.\n\n\n\n### 10. RFP360\nIf you struggle to issue RFPs as many organizations do, [RFP360](https://rfp360.com/) provides a better way to manage any type of RFx. Their cloud-based software empowers procurement teams to easily introduce fast, effective, and 100% digital RFPs.\n\nYour team drives the process, publishing an RFx, inviting vendors, collecting proposals, and evaluating responses—all inside RFP360. Vendors then use RFP360’s response features to supply answers, ask questions, and submit proposals with ease.\n\nWith RFP360, you can save time, mitigate risk, reduce costs, and improve decision-making. Invited vendors also save time and effort, increasing participation and engagement because the software’s easy for them to use.\n\n![](https://quandarycg.com/static/6c9dd380abbb1ccdb6780804ad2d8733/2fafd/4th-image.webp)\n\n## 11. Prokuria\n\n[Prokuria](https://www.prokuria.com/) is a cloud-based platform for automating sourcing and supplier management. This helps procurement teams around the world to deliver significant cost and time savings.\n\nThe platform is easy to learn and customize for your team. It's intuitive design means your team can quickly learn adn start using the platform compared to other software solutions on the market.\n\nProkuria also provides many cost-saving sourcing solutions:\n- Faster supplier management through launching all types of sourcing events (RFI, RFQ, RFP, Auctions, and Dynamic Allocation.)\n- Supplier and contract management via Supplier Relationship Management (SRM, Segmentation, Performance Reviews, Onboarding, Scorecards.)\n\nPlus, this user-friendly platform streamlines sourcing-to-procurement processes, boosting internal collaboration, alignment with stakeholders, and speed of business to improve cost-saving across your organization.\n\n\n\n## Purchasing Software vs. Procurement Software\n\nPurchasing software focuses on purchasing explicitly. Procurement software supports all areas of the procurement process. For a more detailed analysis of the differences between these processes, [check out our guide](https://quandarycg.com/difference-between-sourcing-purchasing-and-procurement/).\n\n**The beauty of automation is that you can focus on the real problems of your organization based on your budget.**\n\nIf you’re limited by budget, you can leverage purchasing software to automate the purchasing process. Or, you can find areas of your procurement process where automation can yield a very high ROI, like [invoice automation](https://quandarycg.com/how-invoice-automation-works/). \n\nStill, you’ll need to invest in other software to monitor suppliers, authorize purchases, and track inventory. And you’ll have additional expenses if you want to automate the process and connect all these different platforms. \n\nPurchasing software also won’t usually allow you to find potential suppliers, compare them, and negotiate the best prices for your business. The result is a more fragmented, less optimized system that creates more work for you in the end. But, it's still better than manually operating your purchasing process.\n\nAlternatively, you can overhaul your entire procurement process by onboarding an automated procurement solution for your whole organization. The choice is yours.\n\n## Why You Need to Automate Procurement \n\nProcurement is no longer a menial task that needs to be “dealt with”. It’s a strategic process that can help grow your business. Plus, it can give you an advantage over your competition by reducing spend and increasing operational efficiency. \n\nHowever, you need the best procurement software if you want to experience the benefits of procurement automation and transform this process into a strategic asset. \n\nWithout procurement, you'll be stuck operating your procurement process manually, missing out on the [benefits of procurement automation](https://quandarycg.com/benefits-of-procurement-automation/).\n\n## The 3 Most Important Procurement Software Features\nBefore you decide to onboard a procurement solution, you need to evaluate its features. These platforms have plenty. Still, there are three features that are absolutely critical to you getting the most out of the platform you choose.\n\n### 1. Easily Integrates with Other Systems\n\nIntegrating your procurement solution into your business systems is key. This helps you reduce costs while increasing efficiency in your organization. \n\nYour apps need to move data seamlessly from platform to platform. This creates a more transparent view of your business and its customers. It also reduces errors and keeps data clean.\n\nIf you’re not sure about whether or not a particular procurement product can connect to your existing business infrastructure, it’s best to [consult an integrations specialist](/quandary-connect/).\n\nAn integration specialist will know how to connect your disparate systems. They'll also know which integrations will give you the highest ROI. These experts will help you avoid the typical pitfalls in connecting systems, getting you more out of the procurement software you choose.\n\n### 2. Scales to Match Business Needs\n\nAs a growing business, you need to invest in procurement software that can keep up. Otherwise, you'll end up looking for other solutions before you've seen a significant ROI. In short, you need software that can scale with your business.\n\nTo figure this out, speak to the vendor about the platorm's ability to scale. You'll also want to know whether or not new features and systems can easily integrate to it. After all, your customers and the market's needs are always changing, and you need to be ready to provide them with the features they need.\n\n### 3. Provides Accessibility for Your Team\n\nOne of the main reasons businesses fail in their attempts to automate processes is that they choose products that are not user-friendly. The more difficult a product is to use, the less likely it will be that staff will more willingly use it and embrace the change. \n\nYour procurement solution needs to be accessible. It should be easy to learn and easier to use. Ask how detailed/hands-on their customer support is. Read reviews. Also, find out whether or not the procurement software has a knowledge base that provides additional insight and guidance. \n\nAbove all else, it should be mobile. After the pandemic, more and more industries embraced remote and mobile workforces. Add to that much of procurement takes place outside of the office and around your business or on the warehouse floor.\n\n## Automating Procurement in a Post-Pandemic World\nThe value of digitizing your procurement process in the wake of COVID cannot be understated. Already, businesses are rapidly transitioning to relying more on software systems to streamline the process rather than manual tasks performed by people. \n\nThis sudden shift in our world reminded us that business systems and flows need to be agile if an organization is to weather any storm. \n\nNow, more than ever, your organization needs to be ready for any rapid shift. And a digital procurement process with the best software for your business is one way to ensure your business keeps moving forward, no matter what the world throws its way. Procurement software can provide that agility.\n\n## How to Deploy the Best Procurement Software\n\nProcurement software can help you reduce costs by providing a clear view of your supplier relationship that you can leverage. You can also gain more transparency in your procurement process, increasing efficiency, improving communication, and reducing errors. \n\nSo, how can you find the right procurement software and get the most of it for your business?\n\nAt Quandary Consulting Group, [our process consultants](/tech-consulting/) can help you improve your workflows and systems by building custom applications and integrating your disparate systems. \n\n_Always_ within budget. _Always_ delivered on time. \n\nSee how we've helped our clients improve their businesses and get insane ROIs by checking out our case studies below.\n","shortDescription":"Often overlooked, your procurement is a strategic process you can leverage to boost the bottom line of your growing business. By knowing the latest trends and onboarding the best procurement software, you can reduce costs while finding new opportunities for your business. These are the top 5 procurement software you should consider if you're looking to better scale your growing business. 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