Procurement software for SMEs: How to optimise procurement management?

What is procurement software?

Procurement software is ERP that takes over cost control and integrates all the details of the procurement process into a single application for easier, more straightforward and intuitive management. In this way, it is a tool that can help to efficiently manage expenditure by department, by project or even by person within a workforce.

In addition, it is a tool that allows us to centrally manage all operations related to procurement and the provision of everything we need to carry out our work. This goes from the moment of contact with suppliers to the moment of sale and collection.

How can procurement management be optimised?

Having defined what procurement ERP is, we will now discuss the steps that can be taken to optimise procurement management.

1 .- Differentiating between relationships with suppliers and their management

One of the advantages of procurement software for SMEs is that it provides a clear way to manage supplier relationships and supplier performance. In order to improve their performance, we must precisely obtain a continuous and constructive flow of information to/with our own suppliers. In this way, we will be able to improve their management and get a broader view of the whole picture.

2.- Improving strategic supply through procurement software for SMEs

A second point we can focus on is precisely the strategic supply process. This consists of all processes that deal with innovations to improve the performance of the procurement flow.

Priority should always be given to making these processes remotely accessible. At the same time, training programmes for the workforce should be implemented, including best practices and resources available to workers.

3.- Adding value to procurement tasks

Another basic aspect that can be achieved with procurement software for SMEs is to give them the value they deserve. In that way, we can understand their value for the future and, at the same time, pass on the fruits of our analysis and focus on them to other working groups. In short, it is about having procurement as a business priority and trying to optimise it as much as possible.

4.- Procurement software for SMEs: Values the importance of technology

Another basic aspect of understanding the importance of procurement software for SMEs is to consider the role of the technology itself. It is not just about implementing procurement software for an SME. Beyond that, it is about changing our approach to technology to incorporate it into our business.

In short, we can say that the focus on optimising the sales process must start from a change in the business mindset. This must in turn include everything necessary to benefit from constant innovation.

5 .- Keeping informed

This is another key aspect of procurement management where procurement software for SMEs can help. It is about keeping abreast of market movements: A process that includes, for example, consumer tastes and behaviours, market studies, or, in general, the impressions that we can pick up from our customers.

We should not make subjective decisions, but rather always base them on the customers' point of view and more specifically on their preferences and general trends. To do so, we must also carry out a process of cross-checking, comparing and deciding on the data after analysis.

6.- Choosing the right suppliers

In the procurement management process it is important to choose our suppliers wisely. This choice must be in line with our company's own objectives. Sometimes, and especially in order to meet the above points, it may be necessary to change suppliers and choose one that fits better with our business vision.

This process has particularly affected various companies as a result of their digitisation processes: They have had to change suppliers in order to adjust their own processes to bring them into the 21st century with the help of technology.

7.- Implementation of smart supply

Another essential aspect of procurement management is to ensure that a business has as effective a stock flow as possible. This is due to a strategic view of supply. In this way, a business must operate in accordance with its strategic objectives as well as its customer service objectives.

In this sense, we must analyse and reduce as much as possible the time, distance and, in general, the resources available for the supply of our business. However: We must seek a balance in which investments are in line with what we need. Strategically, over-investment is also not a good way to run a business.

We hope you find these tips for better procurement management helpful. Remember that they are all part of the much-needed digitisation process that companies must undergo. Therefore, we encourage you to learn first-hand about all the processes that have to do with the technology of your sector in general and your business in particular, always from professionals like SEIDOR.