Benefits of using modern cloud-based strategic sourcing software
For transforming procurement from a tactical to a strategic function, strategic sourcing has been the most used approach as it is capable of delivering the kind of value that enterprises expect from it now. It takes a very long time, expanding to several years to be deployed properly so definitely enterprises want it to offer substantial levels of savings. But it is not always obtained. Savings that are identified and expected from strategic sourcing tools and techniques do not always translate into realized savings. technology innovations have surely created sourcing management software that can fast-track basic tasks and document contracts online, but that is sadly not enough.
The actual number of these savings can only be obtained from daily efforts of the procurement organization that help stakeholders and customers to shift spend off existing contracts and far from earlier suppliers to new suppliers through new contracts. To sustain these savings, requirement of strategic sourcing of the best practices and solutions are required in place for providing visibility into the behaviour of the organization and making sure that the chosen suppliers comply with the terms of their new contracts. The leading enterprises of modern times require strategic sourcing technology which can support procurement's transformation by analyzing the spend data, identifying opportunities to save, enabling e-sourcing, and creating a database that can help with decision-making and track spend.
Automation and tracking of Spend Analysis
Thousands of transactions are conducted by large firms daily and if they are not accounted for properly, it can be difficult for companies to track and manage direct and indirect spending. With the help of an advanced strategic sourcing platform, this problem can be easily overcome, as it uses analytics to cleanse, enhance, classify and analyze spend data by supplier and category. This increases the visibility of the item throughout the enterprise.
This also enhances visibility into POs, invoices and spends o you can be aware that where you are spending. adding to that, automatic invoice matching, rules-based payment approvals, and payment processing makes it difficult for making unauthorized purchases. Visibility and compliance are ensured and also helps enterprises to leverage buying volumes to get discounts.
Offers Anytime, Anywhere Access
Software built on the cloud allows all the users to access the platform from their laptops, tablets, and smartphones on the go and help them to share real-time updates and collaborate easily with team members or suppliers from all over the globe. For example, the software's supplier portal can create an online communication channel with vendors and offers strategic sourcing support that encourages larger collaboration. This also makes way for better monitoring of supplier performance and more accurate sourcing decisions.
Incorporates AI-based tools for supplier selection
The leading strategic sourcing solutions of the market are now coming out with pre-equipped intuitive, AI-based tools that can proactively monitor supplier performance and predict the best combination of suppliers, services, and products for meeting the requirements. Most of them come up with, reverse auction capabilities that help you for selecting the supplier offering the best value. These features also enable enterprises to manage the risk in a better manner.
Links S2P Processes perfectly with a unified platform
An undivided platform perfectly links several sourcing processes and it intelligently tracks all the spending of the business by improving visibility and contract compliance. There is no requirement for integrating modules and awkward bolt-ons, that offers an uninterrupted user experience and eliminates integration costs, delays, and glitches. All the relevant functionality is included in a single platform for smoother information, sourcing and procurement process flow and users can easily switch between tasks.
Comprehensive Tracking of Savings
Choose strategic sourcing software that can make the planning, execution and cost savings tracking easier, by consolidating all the information into a single, intuitive interface. It must help you to track and report all types of cost savings, cost reductions, cost avoidance, rebates, gain shares and signing bonus. It shall be efficient in capturing results and measure savings performance, provide you continuous perceivability of all arranged reserve funds and approve acknowledged investment funds with account and different partners. In simpler words, it must provide you a life cycle view of your cost-saving activities, from planning to execution to realization in organized, customizable and user-friendly reports, so that you can measure the success of your strategic sourcing initiatives.
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