Are you still using an outdated procurement strategy? When your procurement process is no longer fit for purpose, it begins to show in other areas of your business, such as customer satisfaction, your overall expenditures and even your supply chain. To find electronic components effectively, and to keep your business ahead of the competition, your procurement strategy must reflect your standards and your customer expectations.
Take a look at the signs your current ordering process is holding your business back.
You’re using a paper-based system
There was a time when paper-based procurement systems reigned supreme. And while this traditional approach may still work for some smaller companies, more proactive and competitive businesses have moved on to bigger and better technology, leaving other brands in the dust. Simply put, as your OEM grows and the demands on your supply chain become more prominent, a paper-based system leaves you vulnerable to human error and crucial time spent trying to locate specific documents to rectify these mistakes and track down orders affected.
Spreadsheets are causing nothing but trouble
One step up from the outdated paper-based system is the humble spreadsheet. Again, this dated approach can leave users confused, and scratching their heads as they try to make sense of what needs to be ordered and what has been fulfilled. Sadly, spreadsheet processes cause nothing but trouble, as they don’t highlight overspending or flag up those all-important errors until it’s too late. Switching to a modern BOM software approach will minimise all these issues.
Your current software is causing problems
If you’re currently using a software platform to manage your procurement strategy, then you can expect a little more traction than other outdated methods. However, this kind of outdated software can quickly hinder your progress, and even leave your company vulnerable to data breaches and cybercrime. Has your software ever been updated?
It could also be the case that your data storage systems and databases are overflowing with customer data (which can be hard to make sense of), thus hindering your chances of improving procurement processes. In such a case, you can consider integrating your data warehouse and existing software systems with platforms like Zendesk; providers such as Grouparoo (https://www.grouparoo.com/integrations/destinations/zendesk) can help with this. With the implementation of latest software processes, insights can be sought out easily and enable you to improve the CRM and customer service.
Spending is out of control
A crucial element of the procurement process is to monitor your spending and give you the information you need to keep your overheads low. If your current spending on your electronic components is out of control, you may want to take a closer look at your current strategy and how it’s being delivered.
Mistakes when ordering
To err is human, but when you’re running a business, to err can be catastrophic to your reputation and your bottom line. If you’re experiencing more errors than ever before, from the ordering of the wrong parts and the accidental duplication of orders to using the wrong vendors and rogue spending, then you need to update your approach.
Fraud is a possibility
A modern, and secure procurement strategy means putting safeguards in place to protect your business and prevent fraudulent spending by your employees. If you’re still reliant on spreadsheets, paper files or outdated software, then you’re at risk of being targeted by fraudsters within your employment. Putting the right software in place, as well as doing your research as to how you can protect your business from fraud (you could click here for a good starting point), means you can prevent these issues from occurring in the first place.
Final thoughts…
Updating your procurement process will make a noticeable difference to your business and your entire supply chain. Update your strategy today.
Infographic created by Corcentric, a b2b payment solutions company