According to the CIPS website the importance of procurement to organisations can be summarized in these three categories:
Companies can spend 2/3 of their revenue, so small cost reductions or avoidance can have dramatic impact to the bottom line.
Corruption adds up to 25% of the cost of procurement contracts in developing countries, and can add up to 10% of business costs globally.
Protect Your Brand
Accountability for inadequate or exposed supply chains now goes right to the top, with the company’s reputation on the line.
While there are established Enterprise grade systems in use to manage the volume of transactions, many Procurement Organisations are forced to manage many of the processes geared to delivering the above objectives outside of these systems, often in Excel. As soon as information starts to be captured in Excel and shared via email then central visibility and control is compromised and collaboration becomes increasingly difficult.
Softools is a cloud-based digital platform that enables Apps to be developed in hours without the need for code.
The advantage of using Softools to manage processes that cannot be handled within core Enterprise systems is it provides: visibility, governance, real-time collaboration and scalability across locations. Softools’ zero code capability means Applications can be fully customized to address the processes that you want to digitally enable.
Over the past two years Softools have successfully been helping CPO’s address these challenges. Here are a few examples;
Project Portfolio Management
Procurement teams are always challenged to find and deliver cost reduction. How do you capture potential initiatives, prioritise them and then track their progress from delivery to benefit realization?
Codify your best practice approach to managing spend reduction initiatives in Softools. This provides a consistent way of planning, managing and reporting on procurement projects.
Automated reports on progress, risks, issues, actions and benefits.
Visible and collaborative action planning to manage the deviation between actual savings and target savings – seeing the gap early and formulating and tracking a robust plan to address it brings the best chance of delivering results.
Automation of Processes
Despite efforts to automate, purchasing processes can still involve multiple people executing paper processes including RFPs, contracts and supplier onboarding forms.
One customer sends an Excel Sheet all over the world to collect and verify supplier information before being able to accept the supplier and instruct a Master Data Record to be created in the ERP system.
Imagine there being a workflow driven digital process with rule based validation to avoid errors and rework.
The risks of suppliers being unsuitable to your organization are increasing and the threat to your brand could cause catastrophic damage. Consequently, there is an increasing need to perform Due Dilligence
The Due Dilligence itself is ever evolving, with new threats emerging like cyber crime. There are more questions to be asked and evidence to be gathered. So to remain agile companies often conduct these checks on paper forms or using Excel.
There is not one size that fits all, the level of due diligence required on an established global supplier will be different to a small enterprise operating from a high risk country.
Imagine an application that can orchestrate the due diligence process, is adaptable to respond to new risks, is accessible by your suppliers and internal teams and has intelligence to ask the questions required based on the supplier’s profile.
Please contact us at email@example.com to for more information on how we can help to rapidly transform your Procurement Processes.