Organizations in today’s business climate focus on two main areas; one of them is to increase revenue, and the other one is to reduce expenses. In today’s competitive world, both of these aspects are challenging.
At To-Increase, we have been helping customers with improving many aspects of their business. In the recent past, we have had many customers approaching us seeking help on curbing expenses.
One of the ways we have been able to help them is with our accounts payable solutions. Accounts payable automation not only streamlines the payment processes but also enables you to get a complete overview of spending, supplier management, quality of supplies, and cash flow management.
One of the aspects of our accounts payable solution is that it can help you streamline your indirect spending process and reduce manual efforts by using the e-procurement option, which is part of our accounts payable automation solution.
Let’s take a deeper dive into the subject to learn how you can use e-procurement to improve efficiency and control your indirect spending.
What is e-procurement?
E-procurement or electronic procurement is the process through which you purchase supplies and services for your company through our accounts payable automation solution.
The procurement process typically has the following steps:
Creating or raising a purchase requisition
The e-procurement process starts with the requester entering the system and raising a request for the product or service he or she wants to buy.
Select from a product and supplier catalog
On entering the requisition dropdown menu, the requester can pick the product or service from the approved supplier list or catalog. The advantage of having a list of approved vendors and suppliers is that you can define the items they will supply and the rates at which they will supply. This aspect will help you control expenses.
Adding the delivery date
Once the requester selects the product or service, he or she can also specify the expected date of delivery, which ensures that the approver and later on, the supplier, is aware of the timeline.
Submit for approval
Once the requester fills all the details, he or she can submit the requisition for approval. Since the procurement approval process is automated, the requester need not send reminder messages or follow-up with the approver.
Email notification to the approver
Another benefit of the e-procurement module or product is that it ensures that the approver gets email notification, easily accessible on a mobile device of the approver’s choice. The approver can see the request but also any attached documents.
Comments and clarification
The approver can approve right away if the details are clear or call for clarifications by adding a comment at this stage. The requester will get a notification, to provide clarifications or make requested changes.
Approval and PO generation
Once the approver is pleased with the inputs that the requester has provided, he or she approves the purchase requisition (PR), and notification of approval goes to the requester. At the same time, a purchase order (PO) is generated and sent to the vendor or supplier to execute the order.
Goods delivery and update on the system
Once the goods are delivered, the requester can acknowledge the receipt and upload the goods received receipt on to the e-procurement module. In the meantime, the vendor or supplier generates the invoice and sends it to the accounts payable department.
Three-way match, payment, and process closure
The accounts payable automation solution will do a three-way match of the purchase order, goods receipt, and the invoice to process the invoice. Once the invoice is approved , the entry will sync to the ERP system.
Watch the video to see how the e-procurement module within To-Increase MediusFlow works.
Here’s what you can do next
Now that you are aware of the simplified process that e-procurement brings to the table, let us look at the benefits:
- E-procurement makes the purchase process quicker and more efficient
- Ensures that any spending well-planned and systematic
- Helps you source suitable suppliers with attractive rates, payment and delivery terms
- Is easy to follow and implement and helps with audit documentation as all approvals are maintained within the software
- Reduces the stress on your finance team, especially the purchase and procurement team
Want to learn more? We can help you streamline your indirect procurement process.