The impact of management software on a company’s accounts department
In the age of new information and communication technologies, businesses need to change their approach. Integrating digital technologies into business operations is no longer an option, but a key requirement. This can only be achieved by implementing purchasing management software. So how important is it to use purchasing management software? What purchasing management software should you choose? What do we mean by the customer-supplier relationship? Does it favour supplier invoice management? These are just some of the questions that will be answered in the following sections, with the aim of understanding the role of purchasing management software in an accounting department, whatever the sector of activity.
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What are the advantages of using purchasing management software?
There are many advantages to using purchasing management software, including avoiding the risks of poor supplier management. It optimises accounting performance and improves the purchasing function within the company.
Optimising company accounting performance
Implementing a purchasing management tool for an accounting department is beneficial on several levels:
- It ensures speedier processing of accounting documents;
- It makes work easier and saves time;
- It helps to improve staff working conditions;
- It helps process large quantities of documents in record time;
- It makes the company more profitable and boosts its reputation;
- The digitisation of the company’s operating system and company-supplier relations are enhanced.
Digitisation not only helps to modernise a company’s accounting system, but also permeates its entire operation. Managing supplier invoices is simplified.
Improving the purchasing function within the company
One of the advantages of digitisation is that it optimises the processing of time-consuming tasks. So, thanks to the modernisation and automation of company operations, the purchasing function is greatly improved. When it comes to corporate purchasing, data is of vital importance. If it is of good quality, it can help to detect loopholes, control certain risks and reduce costs, all of which contribute to good management in general. Automating exchanges and transactions is an important factor in improving relations with suppliers.
In an environment where speed is of the essence, coordination between purchasing and accounting procedures is essential. It reduces errors and makes exchanges more fluid. What’s more, synchronisation optimises and improves budgetary control and the cross-checking of information.
So what is the ideal purchasing management software to help your company achieve conclusive results?
Modernising the world of business is the key to success for any company today. That’s why you need a tool capable of automating supplier invoice management to boost business performance: SRM.
The benefits of SRM
SRM, which stands for Supplier Relationship Management, is software that manages a company’s relationship with its suppliers. It easily replaces Excel for managing supplier invoices, for example. It is a communication channel between companies and suppliers. SRM is a tool capable of modernising business operations by making them more efficient. It helps to manage customer-supplier relations easily and in record time.
How SRM works
The procedure for managing relations with suppliers is usually laid down by the SRM software in six (06) steps.
Step 1
This stage is called “collaborative design”. It is so called because suppliers are sufficiently involved to reduce the cost of the finished product. It enables all the information needed to resolve issues relating to the supply of raw materials to be entered into the SRM system. These raw materials are intended for the production of a finished product. This concept raises a number of questions: what raw materials should be purchased to reduce production costs? What special features should the finished product have? How can we set the best delivery time? What are the periods of greatest demand?
Stage 2
In this stage, the company selects suitable suppliers from its database according to predefined criteria. In other words, the appropriate supplier capable of supplying the raw materials the company needs for its production. Several criteria are considered when making this choice. These include cost, production capacity, maximum delivery time and suppliers offering guarantees on the quality of finished products. The 3 or 4 ideal suppliers chosen on the basis of the above criteria will be put out to tender.
Stage 3
This is the final selection stage. This is a very delicate stage, as the company chooses its final supplier. It’s a highly complex process, during which suppliers make the necessary documents available to the client company and defend themselves in order to win the contract. These documents include a request for quotation, price proposals, information about the suppliers and the company’s economic and financial situation. On the basis of the dossier presented by each supplier and thanks to SRM, the company is able to choose the ideal supplier.
Step 4
At this stage, the company must formalise its commercial relationship with its new supplier. This contract will be concluded with reference to the various elements of the selection criteria. This stage is known as “negotiation”.
Stage 5
This is the procurement stage. This is the final discussion between the company and the supplier. It consists of agreeing on the logistical aspects, the method of invoice payment and the order fulfilment procedure.
Stage 6
Once the order has been delivered, the company assesses the supplier. This assessment relates to the execution of the delivery and compliance with deadlines. It is necessary in order to anticipate or limit risks.
What do we mean by the customer-supplier relationship?
The customer-supplier relationship is a process that requires the parties to agree unambiguously on the terms of the exchange. It is a known, unanimous and optimised working process between customer and supplier. This definition generates duties for all stakeholders. The customer must express his needs clearly. He must describe the need, the quantity required, the delivery time and the cost.
The supplier must deliver the product or service in accordance with the customer’s requirements. They must always question whether their customers’ needs are being met. They must encourage dialogue within the company by giving their employees a voice. When it comes to management, employer-employee dialogue is vital in that it helps to lighten the atmosphere. It’s a process that allows employers to listen to their staff about the problems that are undermining the company and to iron out any malfunctions that are detrimental to customer satisfaction. The aim of this dialogue is also to bring the employer up to date with information from the field. Purchasing management software will be responsible for centralising information so that no time is wasted. So we need to raise awareness so that every customer is satisfied with the services provided by the company. This is the sine qua non for improving the quality of the customer-supplier relationship, both inside and outside the company.
In short, purchasing management software genuinely improves a company’s accounting department. It is a real driver of business development. SRM is a real example of this, and in the long term it will help to increase turnover. The dematerialisation of supplier invoices facilitates exchanges and centralises all the information they contain. All that remains is to convince suppliers to opt for electronic invoicing. This will improve existing relations between the two stakeholders.
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.