Why it's important to apply technology to your supplier management

There are people who believe that technology is like a hammer or a screwdriver. That is, something that serves a specific purpose. They are wrong. Technology is already supporting the foundation of our society.

In the purchasing areas, especially in SMEs, Excel and e-mail are the base technology and, in most cases, the only one. Some people wonder if they need specific tools such as SRMs for their work. The question is not that. The question is,

Why aren't you using them yet?

Purchasing solutions help you in the following processes:

With one or more specialized tools to help you do this, you can:

Access to more suppliers.

If you want to find new suppliers in a category or you have to open a new category in which you have no history, your supplier platform will offer you new alternatives.

Control supplier risk.

You will be able to know if a supplier is solvent or not without having to ask for any document.

Reduction of expenses.

You will encourage competition among suppliers and that will make you get better offers and better purchasing conditions.

Improvement of supply conditions.

You will have much better control over what you are served, when you are served and the pace at which you need to be served.

Control of domestic demand.

You will have located the internal spending units and will be able to establish procedures for requesting and approving purchases.

Supply control.

You will be able to verify that what you are served is what you have ordered in the quality, time and manner you have purchased or contracted.

Control of contract compliance.

You will have information to know whether or not your supplier has complied with the agreement.

Improved cash flow.

You will give order of approval of the invoicing in the adjusted amount and for the quantities actually supplied.

Performance evaluation.

You will be able to analyze whether your supplier is complying or not.

And all this, from your workplace, with systems that organize information in an automated way and leaving you time to dedicate to what the buyer is more effective for his company: to buy better and not to do administrative work.