Purchasing is a crucial function of every business and the focus on optimising procurement processes has increased during the past few years. Based on a report by the Canon organization, we have outlined 5 challenges purchasing departments currently face.
1. 55% of businesses say improving P2P processing is a key goal for both procurement and finance
Process improvement is generally about automation and creating more streamlined processes, but could just as well be about how the staff can adapt to the new porcesses that have to be implemented. You need to create user friendly, stable environments.
Palette offers solutions that streamline the P2P-process, where user friendliness and mobility are key features.
2. 51% of businesses consider it important to reduce purchasing costs
One way to reduce purchasing costs is to buy the correct item, at the best possible price, from a reliable supplier which delivers according to terms. For many organisations this means you need to steer purchasing towards fewer suppliers with negotiated prices and conditions.
Palette purchase solution displays existing supplier contracts where you can steer employees to buy from prioritised suppliers.
3. 39% of businesses consider that they need to increase control of indirect spend
Controlling indirect spend should be a priority in every organization. Purchasing software needs the support of management and implemented wherever purchase decisions are being made.
Palette provides end-to-end P2P technology which is the prerequisite to gain control over indirect spend. When all transactions are created in the same system, it’s possible to follow up and ensure there is compliance with your purchasing policy.
4. 33% of businesses would like to reduce risk within the supplier network
In order to reduce risk within the supplier network, you need to work through the entire process. Start with an overview of your vendors and list them in order of importance and risk magnitude. Work with each supplier to see how they can contribute to minimizing risk.
PaletteNetwork (Europe only) digitally connects all your suppliers, reducing risk and while increasing automation. In addition, you gain better data accuracy for financial reporting.
5. 29% of businesses state that compliance must improve
Getting approval and buy in from employees in the organisation is a key factor for the success of any change management. Internal communication should be highly prioritised on top of having easy access to the prioritised suppliers.
General information about suppliers, their contracts and terms is all clearly displayed in Palette’s purchasing module. That makes it easy to order from the right suppliers and have compliance “baked in” to the process.
Find out more about Palette AP Automation here.