The procurement management process is also known as the source-to-settle process. It entails evaluating, selecting, and drafting formal contractual agreements and managing the company’s ongoing supplier relationships.
Procurement is a broad discipline with many interconnected activities. The procurement management process includes transactional purchases of goods and services and integration with accounts payable to complete the source-to-settle cycle by providing supporting documents to assist with the processing of supplier invoices for payment.
What are the benefits?
Companies spend money on procurement management software to streamline and automate the source-to-settle process. Procurement management software aids in cost management by increasing savings through negotiated purchasing agreements with suppliers. Expenses are controlled by directing purchases to approved vendors via applications that also enforce purchasing policies. Source-to-settle solutions boost procurement efficiencies by streamlining internal processes and lowering risk through better supplier management and contracts.
Procurement management systems provide the following benefits by automating and optimizing procurement processes:
- Improve cost savings
- Increase influence overspend
- Improve efficiency and automate procurement processes
- Improve supplier management
As the global economy becomes more complex and faster, procurement professionals require more powerful and responsive tools to extract maximum cost savings from procurement while assisting their organizations in shifting the role of procurement processes toward value creation.
Procurement teams that use a digital procurement platform can move away from manual, paper-based business processes. This enables immediate cost savings by eliminating human error and the need for materials, storage, and management of physical documents. It also establishes the company’s spend data as a primary source of business-critical insights, ultimately strengthening its competitive capabilities and bottom line.