7 Major Myths Business Organizations Believe When It Comes To Procure To Pay Software

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