Procurement management, or source-to-settle, is the procurement lifecycle, beginning with the evaluation of purchase options and ending when supplier invoices are paid.
Procurement management is a huge and diverse field, with many functions and activities taking place in regard to sourcing, purchasing, and settling supplier invoices. It is the process of making decisions about the purchasing of goods and services for a company. Procurement includes defining business plans, sourcing potential suppliers, creating buying strategies/criteria, evaluating offers, negotiating contracts and managing supplier relationships. Procurement is becoming newly important as companies shift towards increased buying of services, products and materials from outsourcing vendors or by creating strategic partnerships with other companies (such as developing joint ventures) in order to gain access to expertise the company may not have within its own organization. Poorly managed procurement can mean lost sales, wasted money, and increased risks. Often, procurement professionals are in charge of sourcing products or services without any strategic vision, and without linking purchasing to the overall business plan of the company. With procurement management software, your business can build a supply chain based on strategic goals and risk assessments. Procurement management software speeds up the sourcing cycle and provides transparent insight into the costs of goods and services with tracking capabilities Integrating Procurement Management across all four disciplines — sourcing, purchasing, vendor service and accounts payable — provides for a more complete picture of real-time order status, allowing for faster delivery times as well as minimizing the risk of non-payment from creditors due to inaccurate invoice processing. If your organization has a requirement for multiple suppliers or complex transactions, then you can increase efficiency and reduce costs by having cloud-based procurement software in place. Contact us for a free consultation, or to request immediate assistance with your next procurement to pay management project.
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