Today procurement teams receive hundreds of requirements on a daily basis from departments all over their organizations. With decision-makers aiming to curtail unnecessary spending and improve savings, procurement teams are supposed to be more cautious and efficient while processing requirements. Every time, these teams are expected to optimize each of the requirements, irrespective of the monetary value attached to it, at the right price and with the right supplier.
Let us dig deeper to understand these challenges faced by procurement teams at each stage of the requirement processing workflow.
Procurement teams receive requirements in multiple formats on various channels such as Email, ERP, PDF, WhatsApp, Slack, Microsoft Teams, etc. The finer details of the requirement are rarely captured. The email usually says, “I need a Dell Laptop”. Now there are at least 20 different models for a Dell laptop. Many of the requirements are communicated at the last minute. Other departments convey that all of the requirements need to be fulfilled urgently and were required yesterday itself. Now procurement teams have to send out enquiries, follow up with the suppliers, coordinate for the clarifications and finalize the specifications.
Procurement teams have to calculate the Total cost of Ownership (TCO) for every single purchase. In the era of Strategic Sourcing, the aim is to reduce TCO. Thus, procurement teams have to evaluate Price, Quality, Service Levels, Compliance, etc.
Procurement teams have to secure approvals for the requirements from different stakeholders before they are finally released to the vendor. Many organizations follow the hybrid model to run approval mechanisms. Few tasks are performed automatically while other tasks require manual intervention. Such hybrid models or complete reliance on manual efforts for approvals decrease speed and efficiency. Subsequently, procurement teams follow up for the deliveries. All above challenges lead us to a critical question.
Is it possible to correctly ascertain requirements at line item level and processing them optimally every time? No. And thus Doing it right every single time seems next to impossible right? A recent Gartner survey states that 70% of the business functions are not happy dealing with the procurement teams. They would rather do it themselves. But we all know that it is a huge cost to the organization. Unoptimized costs, loss of compliance, increase of maverick spend and the list continues to extend.
Let’s talk about an ideal solution that would enable businesses to overcome the challenges in the requirement processing.
We’re enabling a controlled self-service system ensuring that both the end-users’ and the organizations’ needs/expectations are met. “All Hail Procurement!”
Procurement teams can focus on their core strategic activities like Vendor Management, Quarterly Purchase Planning, Category Management, Supply Risk Management, Sustainability, etc.
Organizations will never have to worry about their employees moving between teams, categories & even companies. Intelligence is always retained. We don’t have to worry about hiring fresh talent, who needs to be guided at every step of the journey.
Last but not least, we all could look at saving those precious dollars, which are the direct KPIs that impacting our bottom-lines.
Now what if we tell you that we have already built this ideal solution. One that has solved every one of the problems mentioned above. That’s what we call Aerchain’s autonomous PR - PO process.
To learn more about Aerchain's solution, write to us at sales@aerchain.io
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