In every area of their businesses, companies are increasingly implementing digital solutions to drive efficiencies. These solutions often provide significant financial savings in procurement – often by delivering both cost reductions and cost avoidance against actual baseline spend.
In sourcing, following a previously established and proven process provides transparency and control and enables easy collaboration and a central repository of current and historic events. This prevents the need to re-create the process every time, ensures that colleagues do not waste time trying to locate records, and establishes an audit trail.
By having an easily accessible contract repository, time is not wasted searching for contract information and documents. The creation of a clear summary and automatic alerts about notice periods and contract end dates provides a better way to prioritise and properly resource work instead of scrambling at the last minute. If you keep a permanent record of every contract, either active or archived, you will save time by not having to repeat work that has already been done.
As with contract management, supplier management offers significant time savings through its supplier repository and alerts. Additionally, keeping an eye on supplier performance and compliance can often prevent issues that would have cost money as well as time to resolve.
(Average Salary of employee / Average number of days worked) / Numbers of hours worked per day
As an example:
(Salary of £30,000 / 220 days) / 8 hours per day = £17 per hour
Therefore, for each hour saved by using a procurement software, the company is at least £17 better off because the hour can be spent on more productive activities that could generate more revenue or savings.
Different digital procurement solutions are available for many companies, especially larger ones which have more resources. One digital procurement solution designed for SMEs, called oboloo, is available to smaller companies. oboloo is an intuitive and simple self-service platform that allows organizations to manage all sourcing, contracts, suppliers, and savings in real time. oboloo enables companies to be supplier smart. To learn more please visit www.oboloo.com.