Why transparency is a key feature of successful procurement? Or maybe it isn’t?

What to integrate with procurement software? 5 hottest integrations!
14 February 2018
E-procurement in SME. Does it make sense?
7 March 2018

Źródło: Freepik

Let’s start with defining what is actually business transparency. According to the business leaders it’s openness, communication and accountability. The experts publishing in Forbes claim that transparency may, or even should, be built into all business levels,  areas and on every company growth stage (the sooner, the better). Thus the transparency concept applies also to the procurement. Moreover, transparency in procurement should matter even more that in other teams.

A transparent procurement process ensures equal access to all the process elements for all its participants and suppliers (certainly, except the sensitive data). Procurement methods, procurement process rules (for example, acceptance workflow), legislation, evaluation criteria (such as attaching significance to the particular criteria), technical specification, supplier rights should be definitely transparent.

What are the real benefits of  procurement transparency?

1. No duplication of purchase requests and orders.

So clearly generating savings and increasing effectiveness by, for example bulk purchasing.

2. Effective data monitoring  

Thanks to access to the information, every element of the procurement process may be monitored and buyers’ work may be more efficient.

3. Strategic planning

Basing on reliable data which is the result of  the transparent procurement process, it’s much easier to create the purchasing strategy, which will result in real savings later on.

4. No information noise and organizational chaos

We know other buyers’ objectives, we know how their processes are going, we know the overall business needs. We rely on the data and use the same tool. There is nothing more needed to remove information and organizational chaos.

5. Identifying risks

Integrating the process in one tool and removing information gaps allow to monitor and manage the risk effectively.

How to get the transparency in procurement?

There are a couple of methods. One of them is adapting procurement software. Depending on a company needs, it may be a complex ERP system or an intuitive SaaS app, or the integration of both of them. There are many opportunities. You better take care of transparency in your company before your competitors do it better and quicker.

 

We are not the theorists, therefore NextBuy follows the trends and changes for you. Recently we have implemented a couple of changes. The most important ones are:

Acceptance workflows for RFx and supplier selection process (acceptance of a supplier recommendation)

NextBuy enables creating the acceptance workflows, including accepting by categories, units or buy other users. You can also configure the steps manually. There is also an option to restart the acceptance process, keeping the whole acceptance history.

We worked on offer evaluation criteria. Now you can:

  • attach significance to the particular criteria
  • define users participating in particular criteria evaluation (every criteria may be evaluated by various users)
  • automatically calculate the scores

Additionally,

  • we refreshed offer table export to the MS Excel
  • we added information on net/gross value in purchase requests and orders
  • supplier may participate in a bid without signing up and logging into the system

We didn’t say the last word and we’re keeping on working hard!

If you want to check how NextBuy can support you, request NextBuy demo with one of our procurement experts.


Autor

Katarzyna Nitychoruk-Brzeska
Katarzyna Nitychoruk-Brzeska    
I'm a Business Developer specializing in international markets. Experienced in launching new products on international markets (mainly US and UK), marketing (outbound campaigns, social selling, customer segmentation, event management) and customer success.
ZOBACZ DEMO