The procurement process is changing. Organisations seeking to maintain a competitive advantage in today’s business environment must ensure they have the right procurement tools and processes in place to take them into 2015 and beyond. What will procurement in 2015 look like?
The changing workplace
In 2015 procurement must adapt to meet the needs of its organisations changing workforce, including full time local staff and outsourced remote workers in offices based in locations across the globe. Increasingly organisations work with a blend of internal employees, partners, agencies and suppliers across single and multiple time zones, languages and cultures. Knowledge and expertise are always in demand but access to the right individual with the right expertise at the right time is becoming increasingly challenging.
Serving internal customers
Business customers increasingly expect their purchasing experience to resemble the ease and convenience of shopping on retail sites like Amazon. There is an increasing ability for businesses to purchase from a suppliers website directly rather than from dedicated sales representatives or catalogues. Purchasers increasingly expect to be presented with real-time product availability, detailed inventories and transparent costs. However, procurement teams need to ensure that this spend is visible to the organisation. In many cases if businesses allow internal customers to control their spending locally the result is that certain categories of spend become invisible.
Opportunities to control spend and make savings
Complex indirect spend categories such as Professional Services, Travel and Expense; Print and Marketing Procurement are good examples of areas where organisations can be making considerable spends which they cannot control or account for. Addressing this problem can pose an opportunity for significant savings. For example, the print buying team for one of the UK’s largest retailers managed just over £70m per year. However, following a review of data from Accounts Payable quickly revealed £150m of print invoices were paid annually. So where was the other £80m? If organisations are to make savings, the first step towards controlling spend is making it visible.
Businesses can benefit from gaining visibility and control of their complex expenditure and meet the purchasing expectations of internal customers if they implement an easy to use cloud based e procurement system.
How does cloud based e procurement work?
A good cloud based e procurement system gives organisations visibility & control of their complex expenditure, globally and in real time. This results in considerable savings & efficiencies.
Claritum is a leading provider of spend management software-as-a-service for complex categories such as print and related marketing services. The solution streamlines the processes of sourcing, procurement and invoicing to deliver significant, measurable and sustainable cost savings and process efficiencies to leading enterprise and public sector clients.
To find out more about how our cloud based e procurement system could benefit your organisation call us to organise a free demo today.