Six procurement challenges perplexing Enterprises

The person in charge of procurement has multiple responsibilities , Manage a range of responsibilities —— From requirement identification to supplier management , And then to payment processing .
 

This makes the work of the purchasing manager full of challenges and difficulties . in other words , Identifying and overcoming procurement challenges requires effective use of time 、 Money and effort , Because procurement has a direct impact on the bottom line of the organization . Procurement challenges will vary depending on the size of the organization 、 Business scope, etc . Here are six common procurement challenges that plague businesses of all sizes .

1. Risk mitigation

Supply risk has always been a major challenge in the procurement process . market risk 、 Potential fraud 、 cost 、 Quality and delivery risks are the most common types of risks . Anti corruption 、 Compliance risks such as policy compliance will also keep the procurement leader awake at night .

2. Covert procurement

Procurement outside the specified procurement process is classified as covert procurement . This uncontrolled expenditure will eventually make enterprises pay a high price . When purchased items cannot be justified by capital expenditure or material inventory , The resulting loss of revenue and control is a major challenge for organizations of all sizes . A good way to reduce abnormal or irregular expenses is to put your expenses under management .

3. Lack of transparency

When it comes to organizing data , Spreadsheets are a great place to start , But if you need more data , The spreadsheet will start to crash . The first problem you may encounter is data access . Finding and tracking information in multiple spreadsheets is difficult . The speed of accessing information decreases as the amount of data increases . You also have to deal with security risks , Avoid revealing too much information to too many people . Small errors and omissions may lead to incorrect data , Jeopardise your deal , Make the customer lose a lot , And destroy the supplier relationship . Automating your purchasing process is the best way to improve transparency .

4. Inaccurate data

In order to make reasonable purchasing decisions , Organizations need accurate and reliable data . Purchasing Based on inaccurate purchasing data may lead to inventory shortage 、 Excess inventory and other additional procurement challenges , These challenges may directly affect the bottom line of the organization .

5. Failure to adopt technology

Manually managing the procurement process may seem simple at first , But as the complexity of the process increases , It will be the biggest obstacle to success . That's why we view technology as a partner that helps companies create value , This is one of the challenges in purchasing . In order to achieve the goal , Becoming an expert on how digital procurement solutions can reduce costs and promote innovation is critical .

6. Supplier related issues

One of the biggest challenges in procurement is supplier management . From determining the right supplier , To track supplier performance , And ensure a stable supply of high-quality products , The whole process is very complicated . Especially in an epidemic situation , The importance of having a stable supplier base has multiplied .

With the continuous development of market and Technology , New procurement challenges are also emerging . Understand the purchase to payment process 、 The complexity of supplier management and contract management , It helps the enterprise to maintain a leading position in the competition , Achieve their purchasing goals .

Whether the procurement challenge is hindering your business development ？ If any of these six common procurement challenges looks familiar , Then it may be time for you to consider upgrading your purchasing system . image 8Manage SRM Such a one-stop Purchasing management software It can help organizations simplify the procurement process and lead them to sustainable success .

○ Automated purchase to payment , Achieve transparency and control of expenditure and supply chain
○ Record purchase orders in real time 、 Dynamics of purchase contract , All actions are traceable
○ Assess supplier risk and view all activities throughout the relationship lifecycle
○ Performance benchmarks , Based on historical data , Ensure continuous improvement of total cost of ownership

Choosing the right purchasing tool plays an important role in simplifying the purchasing function and managing organizational expenditures .8Manage The procurement solution has a rich feature set , Make the purchasing team and finance operate efficiently , And can focus on foresight .