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How Easy Is It To Use Procurement Guided Buying?

How Easy Is It To Use Procurement Guided Buying?

Comprehensive procure-to-pay systems offer many unique benefits for most organizations. Instead of being a piece of tech that an organization implements, P2P is a process that covers the entire procurement process, from requisitioning to accounting. Software solutions assist with the smooth operation and implementation of each process. From the inventory management stage to contracting, guided buying to purchasing, from accounts payable to account receivable, one thing is clear: a robust P2P solution is necessary for managing the procurement cycle at your business. Guided buying makes the purchasing of supplies by employees much easier. Here’s how.

An Easier Way To Find Product Comparisons

A universal perk of using guided buying is the ease of finding product comparisons. More choice means easier selection. When shopping in your own life—whether it’s for a high ticket item, a vehicle, or something like disability insurance—you undoubtedly engage in comparison shopping. Finding the best price from the most reputable sources only makes sense. If it’s good enough for your non-work life, then extrapolating the same idea to procurement is a logical conclusion. Comparison shopping is a valuable resource for finding ideal prices on supplies, from suppliers you can trust. With a unique guided buying experience, you’ll be able to peruse various supplier guides at your leisure, narrow in on the best prices, and eventually, save more money at the procurement stage as you make your comparisons.

A Way To Increase Spending Visibility

Solid spend visibility starts with great leadership. Managers need to trust their teams and empower them to perform their jobs at a high level—especially when working the stockrooms, moving inventory around. Attaining a higher level of spend visibility means you can cut costs, identify pain points, and prevent fraud. There are a few ways to improve spend visibility. Use analytical software and guided buying. These will give you real-time visibility and insight at fairly high levels. There are also times when it’s prudent to perform a full-scale spend analysis. Set up corporate policies for buying and hold your employees accountable. Use purchase orders. Document everything. Increasing spend visibility is paramount to successful, complaint buying at any business.

A Way To Reduce Risk

Risk reduction is an indispensable aspect of procurement activity. The reason guided buying helps reduce risk is that it enforces adhering to procurement compliance standards across the company. It also limits possible avenues that lead to rogue spending. Sometimes, rogue spending doesn’t happen on purpose, but more often than not, it’s calculated and intentional. There are more brazen attempts at fraud happening every day. They’re consequential and negatively impact businesses. Some ways to reduce risk include watching out for missing inventory, paying attention to unexpected lifestyle changes, and using cybersecurity measures such as cloud security and inventory management systems to track spending while identifying potential risk vectors or bizarre patterns of behavior that could lead to fraudulent acts. Guided buying reduces the possibility of fraud or rogue spending while giving you control over purchasing.

A Path To Better, Faster Results

Perhaps the best thing about using procurement guided buying is just how easy it is to receive a set of quality, unified results. Instead of randomly hunting for every product or item you need across various sites, the guided buying program acts as a hub covering all your suppliers. Think of it like a giant catalog containing products you can purchase from everyone with whom you have contracts and do business. When shopping through a procurement guided buying system, you have access to various punchout catalogs for each of the suppliers. As you ship, you use these catalogs to select your items, then go to checkout. The checkout process brings you back to the guided buying system. Then, you can go through the same routine for any other suppliers and get everything you need in a single order. This not only effectively provides access to authorized supplies promptly, but also gets them sent to your organization faster and with lower expense than going to each individual supplier to make your purchases.

A Way To Stop Unauthorized Purchases

 Unauthorized purchases are a blight on any company. Along with other types of procurement fraud like bid-rigging, inventory theft, and maverick spending, unauthorized purchases cost a business a lot of money over time. These lead inevitably to rogue spending, possible fraud, and likely third-party risk. Buying unauthorized goods from an unapproved vendor can be a substantial risk! So how do you attenuate this issue and reinforce compliance within the organization? Use guided buying! The system can usually be configured to disable, block, or flag certain purchases. This alone will go a long way to prevent unauthorized purchases. Yet another perk of guided buying is the ability to classify what constitutes an approved purchase and restrict access to non-approved purchases. In this manner, procurement is simplified while compliance is reinforced and ensured.

Written by Team Technobugg

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