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Top 3 Procurement Challenges and How to Overcome Them
Procurement is one of the core departments in a business. If properly structured an organized, it brings numerous benefits and adds value to the company. However, tasks procurement professionals face every day are everything but easy and simple. It’s pretty hard to balance between the requirements of the management and situations on the market, as well as make decisions that will lead to most optimal results. Having all these in mind, we bring you some tips to help you overcome the challenges you are most likely to encounter:
1. Chaos and limited accessibility
Procurement is a department that has to do a lot with paperwork. Without using a procurement software, documentation is often placed among papers in drawers so access is only available with the assistance of a person who knows where to search. A bunch of paper, a complicated approval system, several communication means, manual analysis and long waiting time are things a business can’t afford any more if it wants to be successful. The digital transformation of business processes has never been more important and eliminating paperwork is a critical first step in procurement process improvement. With Ensolva, every procurement step is recorded in the system and all the documents can be found in one place. Any information you need is only one click away!
2. Problems with suppliers
The first challenge procurement professionals deal with when talking about suppliers is actually finding the right ones. We live in times where globalization is everywhere and anything we need and want has never been more accessible. However, since there’s a huge number of suppliers on the market, it’s pretty hard to choose the ones we want to collaborate with. By using Ensolva, simplify your market research process. Simply send RFI’s to your potential partners and get all the information you need for making the right choice. Once the right suppliers are found, be sure to build quality relationships with them from the very beginning. Suppliers are your strategic business partners so good cooperation and mutual trust can bring substantial results for overall improvement.
3. Reducing costs and achieving savings
The main task of Procurement is lowering costs and getting the best prices available on the market. Achieving savings in Procurement means achieving direct savings for the company as a whole. One of the main struggle procurement professionals face is maintaining cost savings year after year. This is another reason why cultivating good relations with your suppliers is important. The stronger the relationships with your suppliers, the better conditions you get. However, it’s important to emphasize that chasing cost reductions to the detriment of product quality is never a good idea. Find balance between achieving savings and maintaining quality standards and success is guaranteed!
All in all, the digital transformation of your procurement processes is crucial to the success of your business. Using procurement software solutions such as Ensolva will not only save your time and money but will also help you overcome many more challenges similar to the ones mentioned above. Choose Ensolva, transform your business today!