As with other business functions, an organization’s purchasing function faces its fair share of obstacles and problems. Countering and overcoming these need not just the right strategy and approach but also the right tools and resources. One software tool that can help you do so is online purchasing software, a web-based application that makes management of procurement convenient and hassle-free.
Some major obstacles to effective procurement are procurement fraud and other undesirable means of procurement like ad hoc procurement and maverick procurement. Procurement fraud can eat into the company’s bottom line significantly and affect its business operations adversely. It can also demean and de-motivate employees. Care must be taken to avoid all those occurrences that could give rise to this fraud. Same is the case with ad hoc or maverick procurement. While this can also be counted as a kind of fraud, it also could be a result of inefficient or poor planning.
One of the biggest causes of procurement fraud, or for that matter, ad hoc or maverick procurement is lack of transparency and visibility in procurement. When procurement professionals and purchasing managers can take their own decisions without any oversight or scrutiny, they can perpetuate fraud and get away with it.
Visibility cannot be created overnight. It needs the right tools. As mentioned earlier, online purchasing software is that tool. By acting as the one-stop shop for all procurement needs, this software ensures that all the procurement-related activity is logged and made available for scrutiny immediately. Since data needed for analysis is contained within it and analytics tools come with it, users can use them both to plan accurately for the future. Apart from the above, the software also helps overcome other procurement problems like lack of coordination, lack of access to information, and ineffective supplier management practices.