We are at a point where we can unanimously agree to the fact that only companies which have an edge over competitors go on to post tremendous amount of growth year on year. With all aspects which were once considered as competitive advantages now becoming synonymous across the industry, companies are running out of ways in which they can differentiate themselves over the competition and possess an advantage. Enter procurement. It is becoming one of the few critical functions in the organization which can act as a competitive advantage and a critical component of any company’s success story.
A critical part of this procurement process is the procurement approval component which takes a significant amount of time. When the approval process is manual and not automated, the procurement process is neither streamlined nor systematic. This leads to situations where normal approvals take an enormous amount of time. Additionally when members who place the purchase requests are at different locations/offices, the approval process becomes more complicated and multilayered. An automated procurement approval system is one way to bypass such complications.
A procurement approval system brings control and direction to the organization’s procurement function. It ensures corporate compliance, mandates the procurement procedure and makes the entire procurement process more streamlined. This procurement governance is necessary when an organization is planning on improving its procurement capability and also ensures that these strategic procurement activities are transformed to tangible monetary benefits.
Many effective and successful eProcurement systems are designed with an excellent procurement approval system at its core. With this automated approval system, not only is the entire procurement process’ efficiency increased, but a huge amount of monetary saving is also made by eliminating paperwork and avoiding rework due to manual errors. Thus without eProcurement and its automated approval system, the procurement process can never really be a competitive advantage for any organization.