In order to minimise costs and optimise available funds
while maintaining essential financial controls, organisations must
have control and visibility of the purchasing process. At the same
time, employees at all levels of the organisation need access
to goods and services without undue effort or
delay.
When the purchasing process is unstructured or lacks proper
controls:
- It is slow, inefficient and frustrating to make purchases,
often without appropriate authorisation
- Many purchases are made from non-preferred sources, losing
potential savings from negotiated prices and contracts
- There is no visibility of purchase commitments until invoices
arrive, so budgets are often overspent before managers realise it
and cash requirements are unknown
- Costs are attributed to the wrong accounts or departments
- No one really knows what's being bought over time, with little
information available to support procurement improvements such as
supplier consolidation
If the process becomes cumbersome in an attempt to control
it:
- Valuable productivity is lost because every purchase takes
excessive time on the part of the requestor, the approver, the
buyer, and Accounts Payable
- Critical purchases are delayed
- The cost of the process grows
- Employees become frustrated and begin making purchases outside
the system, causing all of the problems of an unstructured process
to resurface
Working with our clients, PROACTIS addresses these issues.
