Delays due to the sending of tedious documents, communication errors and the expenses they cause are some of the main challenges faced by teams responsible for the procurement and procurement process, which is strategic in all organizations.

To overcome them, automation is once again becoming an indispensable tool. In fact, it ensures greater transparency for internal and external actors and streamlines the process. This makes it easier for your employees to collaborate with the purchasing department to meet their needs. In Fine, these are multiplied opportunities to reduce costs.

How does automation impact your supply chain?

Automating the purchasing process not only benefits procurement teams, but also other teams in the business that use this function and suppliers.

• Increase the speed of processing documents and contracts : allows your teams to be more efficient and to find, approve and pay your suppliers more quickly

• Offer greater visibility and better collaboration : lead to better working relationships internally and externally

• Encourage external teams to collaborate with the procurement department : reduces unexpected expenses and gives the department additional leeway to save costs

The role of automation at every stage of the buying process

• At the purchase request

Manually submitting purchase requests is an incredible process Time-consuming and prone to error. Multiple corrections and levels of approval result in a loss of information and cumulative delays. The automation of the process therefore allows applicants to download all required information in a predefined template which is then sent to the approvers for review. Any feedback or changes can then be updated directly in the platform, making it easier to track the order and allowing files to be approved more quickly.

• The order forms

Like purchase requests, purchase orders must be approved at each crossing point. Automation then allows you to create a flow that automatically routes your purchase orders through the appropriate steps based on predefined business rules, which avoids bottlenecks and allows them to reach final approval more quickly. Additionally, the automated process can update your ERP automatically and in real time.

• Improving the perception of purchases: the example of Takeda

The major Japanese pharmaceutical group Takeda wanted to facilitate the collaboration of other departments with the purchasing department to increase its activity. So he automated his business engagement model, converting a three-page form into an online questionnaire supported by specific business rules. The result was immediate: the streamlined process improved service perception and engagement, significantly increasing its cost-saving potential.

• Supplier integration

Gather the information needed to compliance review and supplier risks often occur through various partitioned systems, causing silos and opacity. On the contrary, automating tasks and centralizing documents allows you to enter and share information more easily. It guarantees reliable and comprehensive information to internal and external stakeholders who know where they are in the process and what the next steps are.

• Accelerating integration: the example of Adidas

The global sportswear supplier Adidas wanted to streamline their supplier onboarding process. To meet this challenge, the creation of an information flow and automated processing allowed him to centralize data relating to its suppliers and to obtain better visibility on its integration process. These changes have led to a significant improvement in data quality and to a 50% reduction in factory processing time.

• Invoice processing

Linking invoices to purchase orders, answering questions from suppliers, correcting human errors, submitting them for approval, and issuing payments can take days or even weeks. Automated invoice processing is therefore a lifesaving tool. It performs automatic matching to verify the accuracy of orders, routes invoices to the right people for approval, and provides a centralized repository for registrations, which reduces manual entry data and speeds up the whole process.

• The payment

Your accounting department must be able to pay your bills quickly and securely to facilitate your relationships with your suppliers and manage your working capital needs. Automated payments thus allow them to access all the documents needed to ensure that suppliers are paid on time. This avoids late payment penalties and sometimes even gives you the opportunity to benefit from early payment discounts. Tracking payments on a single platform also allows you to accurately monitor and control your cash flow.

In summary, implementing the automation of your procurement process will increase its efficiency and allow your dedicated team to focus on negotiating the best possible deals.

About StoryShaper:

StoryShaper is an innovative start-up that supports its customers in defining their digital strategy and the development of automation solutions tailor-made.

Sources: StoryShaper, Bizagi