When it comes to selecting a purchasing software program to help improve purchasing in your company there are several things to consider in your decision-making process. Purchasing software is one of the best investments you make in managing your business, cash flow, and purchasing activities. However, how much benefit you will receive and the ease of attaining those benefits depends on the type of software program that you have chosen. To ensure you don’t end up making the wrong choices, put the following factors into consideration and you will decide on the right software. You must always have the right picture of why you want to have such a software program in place for your business. You should not make the purchase and installation without a clear mind on what you expect at the end of the day.
People purchase software for different reasons, but it is important to take this decision seriously and give it the consideration necessary. Ideally, it must help address some of the recurring issues you are facing with purchasing and other supply or inventory related functions. List some of the main challenges that you expect the purchasing software to address in your company and that will be the starting point for your search, providing the necessary guidelines. After that, it will be good to come up with a workable budget as per the amount of money you have available to invest in new software. Look at the actual cost of the software and any subsequent costs related to installation or purchase of accompanying hardware. Getting rough estimates of that will give you an idea of the type of budget to draw up.
In the market, you will come across different companies selling different software programs. Consider several different ones and then narrow down to one that you will purchase. Look at the features of each software, its pros and cons to make sure your final choice is an informed one. Don’t fall for the first software that you come across without exploring several options across the market. Features of specific software will be the key to helping you decide on the best one. Make sure you put more emphasis on that whenever you are looking for the best purchasing software in the market.
Always ensure you have factored in the input of employees who will be using the software on a daily basis. They are the ones who understand the exact needs of the company and bypassing them would be a bad choice to make. They must be part of the software purchasing process and their input must be treated with importance. It will not be a bad idea to seek referrals from close friends or business associates you can trust on the best service provider to offer you a quality, effective and reliable software. This will be well complemented by making a detailed market research of the many purchasing software programs available.
You should buy purchasing software only after you are well aware of what you are embarking on and the reasons for doing that. Consider aspects like available budget, where to buy and who to involve in the whole process. That is the only sure way of buying purchasing software that best suits your company or business needs.
Bernd Geropp is a coach and consultant who works with CEO’s and entrepreneurs in a B2B industrial environment. You can read more about him on his site: http://www.more-leadership.com/.
In the video below he identifies what he sees are 3 commons purchasing manager myths held by industry suppliers and vendors about their work with purchasing managers. They are:
1. Price is key
2. The procurement department decides
3. Purchasing Managers are paid a bonus for savings.
Take a look at this short video and if you are a supplier/vendor do you find these to be common beliefs held by you or your peers? If you are a purchasing manager have you run into these in your negotiations and what have you done to counter these myths to help your negotiations?
Let us know in the comments below.
Most of the small and medium enterprises are now turning their attention to cloud based purchase order software programs. This is one of the ways to maintain a growing business, especially now that modern technology has become an essential part of nearly every business worldwide. You don’t want to be left behind and converting to this type of software will be a big step in the right direction. But you don’t want to jump on board just because everyone is doing it. What are the benefits of this software program to your business? The main concept of cloud computing is to allow a company to gain access to any software or server from any internet connected device – your office computer, laptop, tablet or even your phone. That is generally a key motivation for businesses to utilize cloud based software programs.
Services available over the internet are typically sold on a subscription basis so it will be upon you to choose the best one. Reduced upfront cost is a great reason why cloud based software is such an affordable option for smaller businesses. The subscription fee typically covers all ongoing costs including software updates and happen in the background on the server without having to involve your business or interrupt your operations.
Cloud based purchase order software allows you to track your cash flow effectively so that you don’t end up paying your suppliers more than you owe them. Businesses that do this manually get tripped up with errors and losses through irregular payments, but that is no longer a concern with such a software program. It will let you know if there are any fiscal commitments that are pending thus making accountability easy. Cases of the company losing cash through procurement will be effectively dealt with once you have installed cloud based purchase order software to your company.
The fact that your suppliers will be paid on time without any delays is an added advantage coming with this software. It is possible to set reminders which ensure you don’t miss due dates on any outstanding debts. Having a reputation for on time payment can make negotiations easier. There is enhanced accuracy and lowered errors when making purchase orders with a cloud based software program. The software makes any updates to invoices and purchase orders automatically which eliminates chances of errors occurring. You will find this software very useful in case your employees frequently make such mistakes either deliberately or not. Whether its supplier details, inventory records or accounting details; all that will be updated in an accurate manner using this software program.
The speed at which purchase orders are done increases once your company is using a cloud based software program. The system has the ability of integrating all processes involved in making a purchase order saving you sizeable amount of time that could be consumed when doing it physically. You just require a single click and the purchase order will be sent to the supplier. With the internet, you can send the order through an e-mail and the feedback is always prompt. You have a reason and half to get cloud based purchase order software for your business.
Cloud based purchase order software programs have numerous benefits that will push you into having one for your business. They improve speed for sending purchase orders, improve accuracy and offer cash flow control among other benefits. Consider Bellwether Purchasing Software: for all your purchasing needs.
E-procurement has become very effective following the advent of modern technology. It connects businesses directly to suppliers making procurement one of the easiest things to do. There is the e-procurement software which was designed to satisfy that and it is a good choice to go for. This article will take a look at the main pros and cons of using it for your company’s procurement.
On the downside, most of the challenges experienced with e-procurement emanate mostly from the supplier and not the company but can have an effect on the procurement process. Training cost may be high. Any time technology is involved there is some level of risk to compromised data. What of a supplier who has for all the years been handling clients on a face-to-face basis? E-procurement will definitely become a challenge but it should not be an excuse to ignore e-procurement software.
Starting with the positives, this software comes with a low cost for both technology and information thanks to the internet. You will find out that using the program will have be cost-effective for your buying as well as selling costs. If there were any barriers you were facing in penetrating the market they will be done away by this software.
The prices are more transparent so you shouldn’t expect to suffer from hidden charges while individual purchasing is completely avoided. Simply put; the power balance between sellers and buyers is improved. Integration between procurement chains is at its best when e-procurement software is used. The company will be in a position of managing transactions effectively and in an organized manner. If there are any delays in any procurement dealing it will be noted as early as possible while standardizing transactions are easy. As a business operator, this will give you the leeway to obtaining better price offers for the procured goods. For the long-term basis, that translates to cost saving. E-procurement facilitates for a shorter product development sequence.
This is attributed to the fact that information is exchanged at a high rate while delivery of products does not take long. Another benefit of e-procurement that may entice you is improved productivity which can be achieved even in a short-term, more immediate time frame. All the approved items are listed down on a catalogue making it easier for internal customers to pick what they want without much struggle. That relieves procurement staffers who can concentrate on more valued supplies which in-turn helps to enhance customer relations and strategic sourcing. Generally, e-procurement software improves controls within a company making sure compliance to policies and regulations is of the highest level and the approval process is standardized.
You will have no excuse not to embrace e-procurement because modern technology has become part of our lives. Unless you want to lag behind, you must have e-procurement software for your company’s procurement and stay afloat in the market. Always make sure you have chosen the right e-purchasing software program. Bellwether Purchasing Software is a flexible choice in purchasing software to fill the needs of your company. Contact us today to learn more.
It will always be difficult to manage purchase requests made by employees in the event that a company is using a paper based system or even an outdated computer system. That goes a long way in underlining how important it is to utilize modern purchase order systems. If your company has not been using them to make purchases, now is the time you started integrating a cloud purchase order system into your business processes. There are many ways through which purchase orders are integrated with a business and you should consider at least one for your company. You will come to embrace its benefits in the long-run.
Paper based requisitions can be an avenue for corruption. However, the company will stand no chance of losing money if there are purchase orders in place that need to be approved through one or more levels of management and have balances to check and audit. To make it even more effective, you should consider cloud computing for accuracy in all requisitions. A business that embraces this will have better control of their spend.
Budgeting becomes far easier and much more accurate when utilizing the cloud based purchasing software. This comes in handy when planning out total spending for the company. The purchase orders will make it possible to track down how that money was spent, give accurate and up-to-the-minute reports to measure how well you are adhering to your budget and if changes need to be considered.
In addition, rules can be put in place to help ensure all department heads adhere to the budget. For example, automatic approvals for requisitions that fall within a predetermined budget or even a certain dollar amount that will trigger a 2nd or 3rd level of approvals before converting to a PO. A cloud purchase order system will also make it easier to combine requests from different departments or locations into a single purchase order allowing for volume discounts. .
In summary, by integrating a cloud purchase order systems into your business you will have greater control over how employee requisitions are made. All records on what has been spent in buying what will be well documented for accountability purposes, budgeting, and management.
Above all, there is good planning which touches on finances which is a key pillar to the success of any business.
You can have purchase orders integrated to a business in many ways and a cloud purchase order system will be an ideal platform for achieving that. The use of e-requisition software is more of a mandatory requirement for companies these days considering the fact that modern technology is taking root very fast. Consider Bellwether Purchasing Software and take a look at our free live demo when you are researching software. Our purchasing software does all of the above and more. Contact us today to learn more.