Transparency – The Key To Procurement Success
The procurement function should be performed by fair and transparent means. Procurement is easiest when the process is transparent, but transparency may be one of the toughest things to achieve. One of the best ways to promote fair procurement is to implement suitable procurement software that will make your entire purchasing processes more transparent and profitable.
The procurement function should be based on rules, undertaking fair and non-discriminatory conditions of competition. A transparent procurement process ensures that all the stakeholders, as well as the qualified suppliers, have equal access to all of the system elements, including procurement methods, rules, evaluation criteria, specifications, supplier rights, etc.
When it comes to SMBs, procurement transparency is essential. Maintaining transparency in the purchasing process is important on a number of levels. Today, it is key to achieve cost savings across all business functions.
A few benefits of procurement transparency:
No Duplication
By adopting a transparent procurement strategy, you can minimize or eliminate the duplication of purchased goods. Expensive goods with a limited purpose will be visible to various departments and may have the possibility of being shared instead of purchased again. With the knowledge of visibility, duplicate requests will be closely observed and prevented.
Cost Cutting
The more transparency you have into your procurement process (who is purchasing or approving what), the more you will be able to find areas of savings and inefficiencies. It will be easier for you to decide who tends to ignore business policy, explore why it happens, and draws out and elaborates strategic plans to implement solutions afterwards.
Record Keeping
Purchasing records are better organized and managed when multiple stakeholders have access to them. With a sophisticated system, everyone will have access to the required data at any time. Transparency helps enhance efficiency for everyone involved in the procurement process.
Bulk Purchasing
In a transparent procurement process, procurement officers will have the possibility to purchase in bulk quantities. Requests and purchase orders from various departments can be combined into a single order. Using this method they will reduce transportation and unit costs. Upon arrival, the goods can be distributed to the required locations.
Strategic Planning
The people who are behind the procurement process are not satisfied with what they have. Better transparency empowers you with the ability to add more tactical value to your business. When someone asks you why spend is over the budget for the quarter, you will be able to explain where and why. That makes you the keeper of necessary information; you have a voice when it comes to discussing ways to make the organization more profitable.
Transparency is a key factor in the procurement process’s success within a business. It provides better team performance and facilitates improvements that all can see. A word-class performance requires control and leverage of the company’s numerous business operations. An online system that can make the purchasing volume transparency available within the business is essential. Businesses need to embrace procurement management software in order to build a culture of transparency within their procurement team.
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