When they think of success, many companies focus on revenue. They vary their distribution channels, multiply complex tools or invest in advertising… But some forget the essential! Poor purchasing management directly affects profitability.
It’s important for companies to understand how a purchasing validation circuit works and how important it is. Evaluating internal requests may seem like a simple task, but it is often time-consuming and reveals the dysfunctional nature of an organisation. That’s why setting up an automated approval circuit offers productivity gains for the company.
Find out in this article how to set up an efficient purchasing approval process and what the benefits are.
How do you create an automated approval process?
Ask yourself the right questions
One question remains unanswered! How can you optimise your purchasing approval circuit? The most effective way is undoubtedly to automate it.
There’s no need to create a complex circuit. The aim remains the same: to save time and increase productivity. You need to ask yourself the right questions in order to adopt a validation circuit that is tailored to your needs:
What types of purchases do you make in your company? Are they specific to departments or projects?
Who are the decision-makers? Are several people involved?
What thresholds do you set for approval?
What is your budget policy? Can your teams be independent within a budget?
How can you facilitate notification of your purchase requests?
These questions give you an overview of how your purchasing process works. On the basis of this analysis, you can put in place an appropriate automated validation circuit.
Digitalise your functionalities
The best way to optimise your approval process is to automate it digitally. It’s important to ensure that the systems put in place are effective and rigorously applied. To do this, you have a number of methods and tools at your disposal:
Use procurement digitisation software to ensure that your validation circuit is running smoothly.
Carry out regular audits to identify and quickly correct malfunctions.
Improve and streamline communication.
Our advice: Check the cycle time of your purchasing process using a simple calculation: December 5, 2023.
What are the advantages of a digitised validation circuit?
A rigorous approval workflow
Communication and the transmission of information are essential within a company. Adopting a digitised approval circuit ensures a direct and strict link between the various parties involved. Once the various options have been clearly defined, the productivity of your teams is enhanced.
Your purchasing file is thus structured from the expression of need right through to the chosen method of payment. The purchase order approval chain is thus optimised.
Your expenditure under control
Many purchases escape the approval process and, when accumulated, can represent a significant source of expenditure. A digitised approval circuit with budget tracking gives you the ability to control all your purchasing families. Regain control over all your expenditure and monitor your projects.
Optimise your expenditure items by viewing your budgets. Empower your staff to manage their allocated budgets.
Delegation is the key to successful optimisation. In order not to overburden management unnecessarily, certain operations can be delegated. It is often illusory to have global and precise visibility of each purchase. Digitalising this system provides the necessary hindsight to gain an overall view of your employees’ actions. A history records all your operations. As well as making things run more smoothly, your actions can be traced and your management optimised!
In conclusion, managing your expenditure starts with proper approval of your purchases! An optimised approval circuit makes it easier to understand your purchasing process. Liability is smoothed out and your company’s assets are protected.
Digitalising your approval circuit means you can enjoy benefits such as rigorous control of expenditure, and monitoring and traceability of actions taken. Usually time-consuming, the approval stage becomes child’s play. By saving time and energy, your staff can concentrate on other tasks. And your budgets are under control.
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.