The digital transformation has spread to all sectors of activity and affected all branches within companies. Supplier invoices are now processed using purchasing management software. This is an innovation that is having a major impact on relations between companies and their suppliers. It is important tooptimise the management of supplier invoices for greater efficiency, with considerable time savings.
- 1 What is purchasing management software?
- 2 What are the features of purchasing management software?
- 3 What are the advantages of purchasing management software?
- 4 How do you choose purchasing management software for your business?
- 5 How do you set up purchasing management software in your company?
- 6 How can you successfully manage purchasing within your company?
What is purchasing management software?
Purchasing management software is a computer programme designed to make it easier tomanage invoices for the purchase of goods. In particular, it is used to simplify administrative tasks by replacing paper invoices with electronic ones. Purchasing management software can be used to create a database for storing information relating to purchases within a company. It is a highly practical accounting management system that is suitable for all businesses, whatever their size, format or area of activity.
Shopkeepers and craftsmen can also use a purchasing management tool. This solution is also suitable for certain self-employed professionals who need to issue supplier invoices. Companies can also equip their own management software with electronic invoicing or use the services of an external structure.
What are the features of purchasing management software?
The basic function of purchasing management software is to issue authentic invoices to the various suppliers. The software incorporates a file containing information on all the company’s suppliers. Its functions essentially consist of :
- Issuing quotes
- Monitoring invoices issued
- Managing orders
- Integrating supplier invoices into the accounting system
Additional services are also administered by the purchasing management software within the company. Thanks to the software, you can track invoicing data and calculate taxes for each supplier. This makes it easier to keep track of outstanding invoices and those that have already been paid. In practical terms, the purchasing management software enables you to manage all the financial aspects of your business efficiently, and to process supplier invoices effectively. This prevents mismanagement of supplier invoices, which could prove dangerous for the company.
What are the advantages of purchasing management software?
Paying supplier invoices using purchasing management software is useful in a number of ways.
Automation of supplier invoices
The first advantage of paying supplier invoices using purchasing software is theautomation and speed of the process. Purchase requisitions are replaced by invoices that are easy to validate. Companies no longer have to manually enter the required information, and can easily transform their commercial documents. No more need to use Excel to manage supplier invoices. As a result, the tasks involved are much simpler, more practical and leave very little margin for error.
In reality, the ERP accounting management software used by companies has a few limitations when it comes to managing purchases. Instead, the role of purchasing management software is to eliminate time-consuming administrative tasks. The result is better organisation and considerable time savings that can be put to more beneficial use.
Slowness in data processing is an obstacle to full business development. Automating all procedures with purchasing management software such as Weproc lightens the workload of those responsible for optimising the purchasing process. Working conditions are significantly improved, and the result is greater efficiency. The supplier portfolio is better monitored, with real-time updates.
The purchasing management software gives you a global view of the orders placed by the company. Expenses incurred within the purchasing chain are also monitored a little more rigorously. The implementation of this entire system helps to boost the company’s profitability by producing effective dashboards.
An advantage over the competition
Paying invoices using dedicated software helps you to be more productive and outperform your competitors. As with the issuing of supplier invoices, purchasing management software enables constant analysis of risks within the company. Opting for electronic invoicing is one of the best ways to stand out from the crowd before it becomes compulsory for all businesses.
The use of purchasing management software makes companies more credible and more effective in their dealings with partners. It becomes more seasoned, more powerful and can outperform the competition. The best companies on the market are those that use this technology to better manage expenditure.
How do you choose purchasing management software for your business?
Choosing purchasing management software is not a matter of chance. First of all, you need to consider the size of your business. The scale of the company’s activities is an essential criterion to take into account. The choice of software should therefore be based on your specifications and your budget. The more work you have to do, the more you will have to pay to install it. Purchasing management software occupies a strategic position within a company. Its ability to optimise and monitor current and future purchases is a key criterion that should not be overlooked. The clarity of the information transmitted by the software needs to be verified in order to effectively analyse the information that is useful and exploitable by the company. It is also important to find out about the various features of the purchasing management software. The software you choose should be compatible with your accounting software to make it easier to integrate into the system. Online comparisons are also a good way of choosing purchasing management software that suits your budget and your company’s needs.
How do you set up purchasing management software in your company?
Installing purchasing management software to pay supplier invoices requires a complete overhaul of the current management system. For a successful installation, a general audit of the system is essential to establish the tax compliance of activities. This will enable you to determine the exact number of invoices to be processed for each supplier. The audit also helps you to decide on the invoicing technique. You can opt for electronic document management (EDM) or electronic data interchange (EDI).
In addition to these technical aspects, the introduction of purchasing management software requires in-house staff to be upgraded. This means that all the sectors concerned, from accounting to the entire IT system, must be involved in the process. Discussions must also be held between the company’s partners to agree on the strategies to be adopted. The purpose of these various discussions is to help you make an essential choice. You will know whether to use the services of a service provider to manage invoice payment or to do it in-house.
How can you successfully manage purchasing within your company?
Supply management is above all based on accurate data. You need to know the value and nature of your company’s purchases and those of your suppliers. Doing so helps to establish an excellent procurement strategy. Another solution is to centralise all purchase requests in order in a special file. The dematerialisation of invoices, for example, is a step that helps to optimise the purchasing process. All the data is stored and easily accessible. The time saved processing invoices can then be used for other, more strategic tasks.
You will then have an overall view of the company’s portfolio, an advantage you can use to either reduce the number of orders or increase them. Controlling storage methods is a good way of achieving good purchasing management. Identifying and managing potential risks, particularly with suppliers, can also help prevent a loss of business performance. The best thing to do is to work on a purchasing management tool that brings together all the essential data in one place and makes it easier to manage supplier invoices.
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.