Since the 3.0 and 4.0 industrial revolutions, companies – whether small, medium-sized or large – cannot do without digital tools to manage their commercial and financial transactions. Digitalisation, in 2024refers to the process of leveraging technology to modernise the way a business operates. Digitising transactions using management software is an excellent way of outperforming your competitors andoptimising your operations effectively.
So how can you digitise your transactions in 2024? Discover our suggestions.
The importance of purchasing software in your commercial transactions
Commercial transactions are generally defined as a form of payment for a good or service. There are many different types of commercial transaction, depending on the type of player involved. Those that occur between two distinct companies in “B to B” (Business to Business), between consumers and companies in “B to C” (Business to Consumer), companies and public services in “B to G” (Business to Government). Commercial transactions can take place on a large or small scale. In short, they are at the heart of doing business. The use of B-to-B or B-to-G Purchasing Management software enables companies to efficiently manage their transactions from the prescription phase through to supplier invoicing.
In commercial transactions, suppliers sell goods and services to companies. The processed goods or services are then sold directly to customers. This is a lengthy process which, on a large scale, requires rigorous management to avoid disputes. An error in the transaction can lead to its invalidation, or to a loss of turnover for the company.
Whether large or small, businesses rely on their procurement function to create savings and value by keeping expenditure under control and supplier relationships strong and positive. But if your organisation is still relying on manual workflows and paper-based procurement processes, you’re missing out on the most important benefits of procurement management software and losing both money and value in the process.
Using procurement management software for optimal and efficient supply management
Procurement operations are among the most sensitive transactions carried out by companies. As the global economy becomes increasingly complex and evolves at an ever-faster pace, procurement professionals need more powerful and responsive tools to take advantage of economies of scale.
Procurement management software, also known as e-procurement software, is a software solution designed to help businesses take advantage of digital transformation tools such as automation, artificial intelligence and advanced data analysis. The best software has mobile applications and so offers versatility, accessibility of cloud-based data management, combined with a positive user experience. Each procurement solution will have its own unique features, but generally speaking, an effective procurement management software solution will include, as a minimum:
- Procure-to-Pay (P2P) optimisation: From requirements analysis to the creation of purchase requisitions and purchase orders through to payment of the final supplier invoice, the Procure-to-Pay process is a complex one that benefits greatly from automation.
- Supplier management: Your supply chain depends on strong, strategic supplier relationships. An effective procurement solution will provide tools to easily manage supplier performance and compliance data. This helps reduce hidden costs.
- Source-to-pay (S2P) and source-to-contract (S2C) optimisation: The Source-to-Pay process extends the P2P process to include securing sources of spend via requests for quotations (RFQs). The Source-to-Contract process involves the creation of a formal contractual relationship with the chosen supplier. Good procurement software makes both of these processes much easier with contract management tools that cover all stages of the transaction lifecycle.
Dematerialise your procurement process to better manage your transactions
Paper waste and storage are major costs for businesses. Reducing paper documents will also enable you to minimise storage and optimise space. The buying experience is also more pleasant, and dematerialising physical administrative documents will save time and improve the internal customer experience.
The data collected by the software will then be used to cross-check prices by supplier, find the cheapest offers and build a list of preferred suppliers. The most important function of purchasing management software remains theanalysis of expenditure in order to promote cost reduction.
Managing your transactions becomes easier with Weproc’s purchasing software. You benefit from cost-effective organisation of your purchasing process thanks to reduced transaction costs. With its ease of use, the company can save considerable time and effort on purchasing processing, order management and the provision of useful information from the purchasing function.
Want to learn more about our procurement management software Weproc? Contact us or request your free 15-minutes demo below!
Weproc is a SaaS software specialized in digitizing the procurement process of companies. From purchase requests to supplier invoicing, through the validation process, Weproc is designed to simplify the purchase management of SMEs and mid-sized companies by centralizing all purchase-related activities.