Tag: digital procurement

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E Procurement Solutions: Reducing Costs for Companies by Revamping Businesses Processes through Digital Procurement

With the emergence of new collaborative business practices, companies have started focusing on building expertise in every specific area of their processes. In such cases, productivity and agility of companies’ suppliers directly affect their business performance. Without a proper e procurement process in place, most suppliers fail to provide a standardized offer and, therefore, leave buyers with no scope for comparison. This not only decreases the visibility into day-to-day transactions but also makes it difficult for users to get the supplies that they need. Therefore, companies need to have an effective online procurement system to keep up with quality and standards both.

What is e procurement?

Electronic procurement, also known as e procurement, is the automation of procurement and supply chain processes through the internet or any other information and networking systems. An e-procurement system provides a platform for companies that support automation at a global level by automating internal business processes through electronic data interchange or enterprise resource planning. It also helps businesses to streamline their global procurement system and reduce costs by communicating vital information in an easy and effective manner.

At SpendEdge, we understand the importance of leveraging e procurement solutions for businesses. And to help organizations become market leaders, we have listed the core benefits that e procurement solutions can provide your organizations.

Importance of e procurement solutions

The lack of an effective e procurement process has always been one of the major reasons behind the inefficiency of procurement operations. This not only results in unwarranted expenditures for companies but has also affected supply chain transparency. E procurement solutions are a great way for companies to simplify their workflows and enhance their market reach. Also, e procurement solutions allow businesses to tackle issues such as non-compliance and cartel formation. Listed below are some of the key benefits of e procurement solutions:

Benefits of e procurement solutions

Benefit #1: Reduces costs

Since the use of the internet to purchase goods and services has become quite common, e procurement solutions have reached a point where online procurement is considered to be a viable option for reducing costs.  E procurement solutions allow users buyers and suppliers to connect via digital mediums and provide them with an e procurement system. The system is effective in every stage of the buying process and empowers businesses to purchase orders from preferred suppliers, manage catalogs from multiple vendors, and contract prices in no time.

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Spend Management Solutions: A Holistic Guide for Procurement Companies

“Only a truly integrated spend management solution can fetch value for your company and result in intelligent procurement.”

Limited supply chain visibility, poor supplier transparency, new regulations, spend creep, contract management, risk mitigation, and the growing need to do “more with less” are some of the key challenges that procurement companies face. Spend creep has become one of the biggest challenges for companies today as companies are spending extensively to stay ahead of the competitors.

Unnecessary spend happens when businesses buy additional items, products or services, from suppliers that aren’t needed. Also, it happens because of misguided bid management process, weaker supply chain management systems, and lack of auditing and spend analysis. Therefore, procurement professionals need to have the right spend management solutions to tackle these challenges efficiently and effectively.

At SpendEdge, we understand the impact that spend management solutions can have on your business. And to help companies identify latent opportunities to devise strategic plans to minimize their expenditure in every category, our team of experts have provided a comprehensive guide to spend management.

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3 Key Digital Supply Chain Challenges That Need to be Tackled in 2019

Long before the era of digitization that we commonly associate with Industry 4.0, supply chains have served as the lifeblood of industrial organizations. However, in recent decades, supply chains have grown increasingly complex due to the advent of advanced digital technologies. These technologies have helped the supply chain to evolve into something more interconnected, less linear, and more responsive to change. This new networked chain of supply is known as a digital supply chain. It has reshaped the way stakeholders transact and communicate with each other. The emergence of the digital supply chain has made the supply network a strategically critical component of the organization and has helped in making it more flexible and responsive. However, there are several challenges in the area of digital supply chain analytics, visibility, and planning that are essential to realize its true potential when it comes to driving innovation.

Digital Supply Chain Challenges

Challenge #1: Managing the digital supply chain

A digital supply chain includes applications, network, and data connections. It connects customers to the tech solutions that underpin e-commerce, unlike production supply chain that moves physical resources and raw materials among manufacturers, suppliers, and retailers. Therefore, with business transactions moving to the cloud, managing the digital supply chain becomes crucial for increasing revenues, control costs, and protect the brand.

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Challenge #2: Optimizing the integrated planning process

For any digital supply chain network, optimizing the integrated planning process is very challenging as most companies don’t leverage all the information to achieve the best planning result possible. Additionally, it has been observed that statistical forecast data or determined planning is manually overwritten by planners. So, for a digital supply chain to derive the best outcome, the organizational setup, arequest proposaldvanced level of integrated process optimization, processes, governance, and incentives need to be aligned between and within partners in the supply chain.

Challenge #3: Building a balanced roadmap

Shifting to a new market strategy with a digital supply chain network to accelerate growth can wreak havoc on the company’s highly customized supply chain. Therefore, it becomes crucial for the management to make sure that the new supply chain balances their competing demands and allows easy integration of new business models. A balanced roadmap can help in generating quick wins and provide flexibility to accommodate evolving technologies and future capabilities.


Is your organization’s supply chain ready to go digital or are you facing any of these digital supply chain challenges? Contact us now!

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4 Ways to Step-up Your Procurement Cycle

Maintaining efficiency in the procurement cycle has a positive chain reaction within the organization as a whole. The key objectives of a procurement process extend to far more than merely obtaining goods and services to satisfy the internal requirements. A successful procurement process aims to optimize business operations and create a significant business value. Having a highly streamlined procurement cycle is vital to the financial success of a company. But even the best procurement process often require refinement in order to yield better returns. But in today’s highly competitive world, if you keep doing what you always have been doing, chances are that it might become obsolete. To survive, companies need to keep constantly updating themselves on the market trends and ensure that the procurement cycle is best in class. Consider incorporating these methods to Request Demo_SEimprove your procurement process:

  • Incorporate contract management system

Companies can use technology to improve the procurement process is by incorporating a contract management system. It will alleviate the whole task of creating new contracts every time the company onboard a new supplier. Contract management and the use of standard templates is more time-saving and facilitates the improvement of efficiency. Furthermore, standard contracts can avoid the risk of errors being made in the procurement cycle and ensure that all important concepts and language are included in each and every contract.

  • Maintain good supplier relationship

Ensuring a good relationship with the suppliers is critical in a good procurement cycle. A mutually beneficial relationship between the organization and suppliers comes with a great deal of effort and hard work. It is important that businesses are dedicated to growing relationships with their vendors and suppliers through trust, honesty, open communication, and ethical business practices. It will also result in improved goodwill as a happy supplier will most likely spread a good word about the company, leading to new sourcing avenues.

  • Automate processes

A company’s procurement cycle might function well manually. But its full potential and true efficiency can be realized with automation. With a good e-procurement program in place, companies can gather data, conduct supplier research,  gain greater visibility into the spend, and ensure the requirements are being met. Furthermore, this can help streamline the procurement process, making it easier than ever to create contracts, send payment, and track invoices and shipment in order to drive efficiencies.

  • Employee training and development

Well trained employees can contribute majorly towards an efficient procurement cycle. Training and development create scope for employees’ personal evolution but also has a significant impact on the company’s productivity and profitability as a whole. It reinforces the goodwill of the business and allows it to maintain the competitive edge. Furthermore, it leads to higher customer satisfaction, lower costs and faster growth.  As a form of effective communication, training can lead to an increase in productivity and allow employees to make the best decisions for the company’s progress.


To know more about the steps involved in procurement cycle and the challenges in the procurement process

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Procurement Consulting Market: All You Need to Know

Is procurement a profit center or a cost center? That’s a debate for another day. However, it is hard to ignore the fact that companies can save millions and millions of dollars in their procurement process. The savings can arise from superior supplier selection, material purchase, risk assessment, and many other factors. These savings are not always evident, and processes such as supplier selection and risk management can get overly complicated. This is where companies need to consult experts in the field of procurement. As a result, they mostly turn towards procurement consultants.

Request Free SampleRegional market

North America and Europe are the most mature markets for procurement consulting services. These regions consist of a number of industry leaders that employ strategic procurement and are moving toward value chain integration. In the APAC region though, buyers are facing intense pressure to improve procurement as it is increasingly becoming an important source of goods and services. Fast-growing operations in countries such as China and India have resulted in the need to improve efficiency in operations.

Pricing outlook

Talent cost, including salaries, training, and development, is a major cost component for procurement consulting firms. While retention of talent is a top priority in mature markets such as North America and Europe, attracting talent is the focus for service providers in MEA, and it is training and development in APAC. Buyers are increasingly considering that their internal team lacks the capabilities to enhance their procurement strategy. This is expected to significantly increase the outsourcing of strategic sourcing and category management functions. This trend is especially evident in the financial services sector.

Cost drivers

Procurement consulting firms have to bear the employee costs including recruiting expenses, employee salary, and benefits which are expected to marginally increase due to inflation and the need to hire skilled professionals. Increasing need for service providers to retain talented consultants are expected to augment the salary costs for service providers. Also, the availability of advanced technology such as ERP software, automation, analytics, and cybersecurity, that enhances end-to-end procurement consulting services has increased service providers’ overall costs.

Negotiation strategies

Companies can save up to 8% of their cost base by adopting a reward-based engagement approach. This way consultants also increase their repeat business and bring innovation in services accessibility. Additionally, category management initiatives such as identification of cost-saving opportunities based on innovation, engagement, and billing can also result in significant cost savings.

Industry best practices

Category managers in this sector are focusing on developing a well-defined strategy to optimize procurement spend. They are identifying cost-saving opportunities such as adopting technologies, collaborating with vendors, and conducting price benchmarking studies to minimize the spend. Additionally, the focus is on developing strategic partnerships, where buyers and suppliers engage in contracts that do not work on incremental costs but are designed flexibly to incorporate prevailing market and pricing trends.


  

Read more about the market outlook of the procurement consulting market along with procurement insights, pricing models, supply market insights, and market innovations in SpendEdge’s upcoming report on the global procurement consulting market.

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HOW CAN BETTER SOFTWARE LICENSE MANAGEMENT RESULT IN COST OPTIMIZATION?

London, Apr 18, 2018: Software licensing is complicated in any organization which is why companies usually purchase software entitlements for hundreds of rights. The rights are then distributed to several employees and machines. Software license management helps organizations to track and document an organization’s software portfolio.

SpendEdge’s latest webinar on the software license management offers an in-depth assessment of the crucial factors influencing the supply market, strategic procurement and sourcing decisions, pricing models, and procurement best practices. The webinar also offers detailed insights into the license management best practices, cost optimization, and software license compliance.

“A good software license management tool will ensure compliance with all such issues and maintain business continuity. Leading procurement organizations can optimize their license spend by negotiating with large suppliers.” – procurement expert at SpendEdge.

Tracking software usage and staying compliant helps companies to plan future purchases wisely by knowing the frequently used software and those that are occasionally used. An excellent software license management tool will ensure compliance with software license agreement and maintain business continuity.

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This webinar on software license management offers insights on:

  • What is software license management?
  • Why should organizations have software license management in place?
  • How procurement teams can yield cost optimization with better software license management
  • Consequences of non-compliance with software licenses

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SPENDEDGE WEBINAR ON 25TH AND 26TH APR – How can better software license management result in cost optimization?

We have progressed far from the days where software was packaged as a product and sold in CDs. Today, with the rising popularity of Sanyacloud-based platform offerings, suppliers are more inclined to provide their product in a subscription-based model. More precisely, they provide access to their software in the form of license. Since software licensing cost takes up a majority of the cost base within an organization, procurement teams should always be on their toes to explore various licensing models and choose the right fit for their organization needs. Software licensing is complex in any organization. Companies usually purchase software entitlements for hundreds of rights, which are then distributed to several employees and machines. Software license management helps organizations to document and track an organization’s software portfolio.

Why do organizations need software license management?

YatheeshSoftware license management ensures compliance with a given software’s End-User License Agreement (EULA). EULA typically specifies how a software product can be used and how many users are permitted and penalties in the case of violation. In case the organization is being audited, procurement teams will have to spend a lot of time and resources to inventory all software usage and prove compliance. In case the organization is found to be out of compliance, they have to true-up their licenses where they buy the software at its book price. Additionally, they may also incur some fees or penalties. The company not only lose out on the financial front, but their reputation also takes a blow. Customers and clients of the company may lose faith in them, and their business would suffer. A good software license management tool will ensure compliance with all such issues and maintain business continuity.

 

How can better software license management yield cost optimization?

Leading procurement organizations can optimize their license spend by negotiating with large suppliers. Also, the teams should assess the role of third-party software asset management companies and the value benefits they offer. Tracking software usage and staying compliant helps procurement teams to plan future purchases wisely by knowing the software that is frequently, rarely, or occasionally used.

Conducted by SpendEdge’s procurement experts, this webinar on the 25th & 26th of Apr would deal with the following key considerations:

  • What is software license management?
  • Why should organizations have software license management in place?
  • How procurement teams can yield cost optimization with better software license management
  • Consequences of non-compliance with software licenses

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