Procurement software offers organisations the tool they require in order to help with acquiring goods and services. Modern procurement software is digital and allows employees to make virtual purchase requests from all over the world.
There are a number of direct positive effects that the use of procurement software has on local communities as well as the economic development of local and regional suppliers.
Buyers and suppliers
One of the primary advantages that come from making use of procurement software is that it means that buyers will have verified suppliers gathered together in the one place. The innovative technology of procurement software means that all suppliers that are prequalified by the leading organisations in the field of procurement software will all be accessible via the same secure procurement platform.
By using advanced vendor management tools to bring together the management of the supplier relationship, procurement software means that businesses will be able to forge strategic and strong working relationships with vendors while ensuring the resilience of the supply chain, and a guided purchase environment in conjunction with process automation mean that every purchase will be being made from the right vendor for the best terms and price.
The use of procurement software also makes it much easier to follow best practice in regards to sourcing. It is easy to find verified suppliers that are more local by making use of the Geo-location tool in procurement software, resulting in more ethical procurement than assists the economy of the local community.
The award-winning tools that come with procurement software mean that the sourcing, evaluation and selection processes are all simplified considerably while also ensuring good governance and probity.
Use data to gain insights
Analytics in procurement software mean that data can be used to gain real insights, enabling for reporting against policy, initiatives such as the Social Procurement Framework in Victoria, and CSR targets while transparency is also ensured by reporting and governance controls.
Transparency is of particular importance, not only in regards to making sure that ethical procurement practices are continuing to be followed, but also in regards to spending.
There are a number of steps in the procurement process that help to ensure transparency, including the proper defining and implementing of procurement policies, the monitoring and documenting of all steps within that process, and the identification and management of approved supplier lists.
The procurement process can also help with the establishment of procurement contracts that are free of errors and potentially costly loopholes, as well as the carrying out of frequent audits.
By making use of automation and data analytics, organisations can remove the issue of maverick spending and purchasing, and procurement software also results in more visibility within the procure-to-payment cycle.
Making use of the right tools can meet sourcing best practice while also driving socially positive outcomes. Vendor Panel solutions make it simple for customers to find ethical local suppliers and make use of procurement software as a positive force for change.