Maximizing Value with Procurement Management Systems

2024-08-29

With the continuous advancement of information technology, many corporate procurement organizations have increasingly adopted digital tools for procurement management, making this a prevailing trend.

In the face of intense market competition and the impacts of the pandemic, controlling costs has become crucial for enterprises. Research indicates that up to 70% of a companys costs are related to procurement, with procurement expenses accounting for over 60% of sales revenue. Effectively controlling and managing procurement costs can significantly enhance a companys competitiveness.


As a result, many companies are transitioning from traditional offline procurement to digital procurement through advanced information technology, achieving efficient management and stronger competitiveness. So, what benefits can a procurement management system bring to an enterprise?

1. Improved Procurement Efficiency  
A procurement management system automates all procurement processes through standardized design, eliminating unnecessary steps and reducing the error rate and order processing time for procurement teams. Studies show that after implementing a procurement management system, order processing time can be reduced from three days to just one hour, with order rework errors almost entirely eliminated.

2. Greater Control Over Procurement  
Different departments within a company can procure the products and services they need online, based on actual demand. Suppliers can provide the necessary goods and services accordingly, reducing the likelihood of blind purchasing. Additionally, companies can publish their requirements online, allowing suppliers to compete on price and quality. The winning bidder delivers high-quality, cost-effective products to the designated location, and companies can communicate with suppliers via the network to obtain timely after-sales service.

3. Increased Transparency in Procurement  
A procurement management system makes procurement information publicly accessible online, ensuring that the procurement process is transparent and reducing the risk of behind-the-scenes deals. Supplier selection is automatically completed by a computer based on predefined standards, facilitating real-time monitoring and avoiding "under-the-table" operations, thereby increasing the transparency of procurement items and prices.

4. Reduced Procurement Costs  
Online procurement broadens the range of suppliers, enabling the selection of those offering the best prices and services, thus overcoming the limitations of traditional supplier numbers and transitioning from localized to global procurement. Additionally, online procurement saves travel expenses and promotes paperless operations through shared online information.

5. Establishing Strong Supplier Relationships  
Procurement shifts from focusing solely on negotiation, price comparison, and price suppression to building strategic partnerships and establishing win-win mechanisms. The system evaluates suppliers on multiple dimensions, including supplier validation, performance assessment, and delivery efficiency, ensuring that the company maintains an optimal supply state.

Easily Complete Procurement Tasks with 8Manage SRM

8Manage SRM is a comprehensive procurement and supplier management platform that can be deployed locally or in the cloud. It manages the entire procurement process (from requisition approval to pricing, ordering, shipping, receipt, inspection, invoicing, and payment), supports online electronic bidding, and handles supplier segmentation, grading, qualification, and performance, as well as product benchmark pricing. In cloud-based applications, enterprises can easily manage thousands of suppliers and various types of procurement, achieving intelligent procurement management.

- Real-time Precision: Procurement management relies on extensive data processing. 8Manage SRM stores procurement data in real-time, rapidly updates information uploaded by the enterprise, and ensures that all data is transmitted accurately and consistently through intelligent analysis and a unified database.
- Simplicity and Usability: A core requirement of online management systems is ease of use. 8Manage SRM emphasizes a user-friendly interface that is simple, flat, and customizable, allowing companies to quickly get started. It supports PC, iPad, and mobile devices, providing a complete set of functions and truly making procurement management convenient and accessible.
- Security and Efficiency: Procurement data is one of the core confidential assets of a company. 8Manage SRM creates a security shield for enterprises, using security measures on par with those of online banking to protect user accounts, data, and network communications, allowing companies to operate efficiently in the cloud without security concerns.

In the era of digital transformation, the adoption of procurement management systems is an unstoppable trend. The 8Manage SRM procurement management system effectively aids enterprises in transitioning from offline to online procurement and from traditional manual processes to intelligent, digitalized operations, steering companies toward a high-end, scientific management model.