Cutting down the major costs and driving drown to
the supplier margins is what organizations have been expecting in terms of
procure to pay software. And though the organizations have realized that
procurement function is capable of doing much more than what is generally
expected, it is still considered to be a strategy of marketing sales or
finance. Given below are the 7 major myths business organizations generally believe
when it comes to procure to pay software ensuring that procurement has always
languished on the backbench of the organizational importance.
Procure to pay software
helps in controlling the expenses and that their job but not a contributing
strategy: We all have heard this before. When it comes to procure to pay software the
procurement responsibilities are completely transactional, where you need to
handle the requisitions, managing the on time deliveries of the requirements at
the right place and at the right time. But when it comes to strategic decision
making procurement strategy there has been no expertise that would help you
contribute. Organizations who believe this should probably take a step towards
the dark ages into the 21st century.
Individuals related to
procure to pay software just get in the way and complicate things: Individuals
related to procure to pay software make things happen in the right way and the
right resource. This again takes a huge effort to upfront, and should be seen
as an opportunity that would help you get things right. Complications would
here continue to arise due to lack of consideration but again is not the case
of procurement.
Direct procurement functions
cannot be outsourced: While the major functions such as the vendor
spend management and vendor relationship management are the two important
things that need to stay with the customer organization, many number of other
procurement activities to this have been deployed and outsourced. Functions
like demand planning and forecasting, commodity price tracking, transactional
purchasing and many more have been outsourced over the years.
Procure to pay software is
nothing more than glorified outsourcing: Procure to pay
software here generally means considering different options, and looking out
for opportunities that would not just allow you think creatively but also forge
in a new and better manner. Outsourcing here is considered to be a potential
strategy that has its own appropriate uses and is not the only option available
that is put to place.
Procurement recruits need to
be good in numbers in order to manage the costs: Different kind of
traits have been put forward when the requirements for all the procurement
professionals are put forward during the job searches. Say for example when it
comes to analytical he needs to be good in numbers and has to be a tough
negotiator. And as mentioned above the role of procurement was logistical,
clerical, with the only aim of getting the best cost saving and these traits
would definitely do. The need here for now is for a new breed of having good
procurement professionals.
Procure to pay software
leads to the loss of control in strategy and processes: When it comes to
procure to pay software, the procurement vendors are the one who are well
integrated and act as a virtual extension of all the customer procurement
functions starting from the adoption of strategic goals to the operational
culture. The customer would then here continue to exercise his control over the
different aspects of procurement function with the vendor.
They always run behind
saving costs but forget considering the business they have been doing: Cost is a major
factor when it comes to procure to pay software and is something that could be
considered to be more than a dollar value. Procurement is considered to be good
when it highlights the different perspectives and the cost benefits from the
business decisions, with savings being one tangible outcome from looking at the
situations in a different manner.
These were just a few but there are a lot more to
go. So what are the other myths you would like to add when it comes to procure
to pay software? How have you been dealing with them? Do leave your thoughts
and comments below and we would be happy to add them to the list above.
Author Bio:
Shivli Ratul is a freelancer and has experience of over 5 years in expense
and travel management softwares.She has in-depth knowledge about managing
travel and different type of expenses incurred in business.she writes about Procure to pay
software as a freelancer
