4 Benefits of Leveraging Procurement Software for Effective Supplier Selection and Evaluation

Mar 23, 2022 | Supplier management

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Mar 23, 20223 min read

Procurement software streamlines supplier selection and evaluation by reducing time and costs, providing real-time data for informed decisions, and enhancing collaboration between departments. Organizations such as Walmart, GE, and Pfizer have seen success with procurement software in improving supplier relationships. Choosing the right software with ease of use, scalability, and supplier performance tracking features is key.

Choosing the right suppliers can be a difficult and time-consuming process. With procurement software, organizations can streamline the process of supplier selection and evaluation, making it both faster and more efficient. This article will discuss the advantages of using procurement software for supplier selection and evaluation, and help organizations identify the right software for their needs. 

Streamline Supplier Selection and Evaluation with Procurement Software 

Procurement software can help businesses streamline their supplier selection and evaluation process. By automating many of the manual steps associated with identifying and assessing suppliers, procurement software can reduce the time spent on supplier selection and evaluation by up to 70%. This helps organizations save both time and money, allowing them to focus on other areas of their business. FactWise’ supplier selection algorithm helps you prioritize preferred and well-performing vendors, and also discover new suppliers that match your requirements and quality standards. 

Procurement software can also help businesses ensure they are selecting the right suppliers for their needs. By tracking relevant supplier information such as quality standards, payment terms, and delivery times, procurement software can provide an overview of all potential suppliers. This can help businesses make informed decisions when selecting a supplier. FactWise provides dynamic holistic supplier performance analytics across key supplier metrics like price, on-time delivery, quality, RfX participation, and so on. 

In addition, procurement software can help businesses manage their supplier relationships more effectively. By tracking supplier performance and providing insights into supplier performance, businesses can ensure they are getting the best value for their money. This can help businesses build strong, long-term relationships with their suppliers, which can lead to better pricing and improved service. With smart dashboards and notifications, automated workflows, impressive chat features and capabilities, FactWise improves internal and external collaboration to enhance supplier management. 

Choosing the Right Procurement Software for Supplier Evaluation 

When choosing a procurement software solution, it is important to consider the needs of your business. Different software solutions offer different features and capabilities, so it is important to choose a solution that meets the specific needs of your organization. 

It is also important to consider the ease of use of the software solution. Procurement software should be easy to use so that it can be adopted quickly by all members of the organization. In addition, it is important to consider the scalability of the software to ensure it can grow with your organization. 

When evaluating supplier performance, it is important to consider the features of the procurement software that will enable you to track and monitor supplier performance. This includes features such as supplier scorecards, supplier performance metrics, and supplier performance reviews. These features will help you to identify areas of improvement and ensure that your suppliers are meeting your expectations. 

Benefits of Using Procurement Software for Supplier Selection and Evaluation 

Using procurement software for supplier selection and evaluation has a number of advantages.  

  • Streamlined Supplier Selection: Procurement software provides a centralized repository for all supplier data, making it easier to access and compare information about potential suppliers. A survey by the Aberdeen Group found that organizations that use procurement software are able to reduce the time spent on supplier selection by 40%. 
  • Improved Supplier Evaluation: Procurement software allows organizations to evaluate suppliers more effectively by providing real-time data on supplier performance and spend. A report by Forrester found that organizations that use procurement software are able to reduce the risk of supplier-related disputes by 20%. 
  • Better Supplier Data: Procurement software provides access to a wealth of data on suppliers, including their performance history, contract terms, and spend patterns. This information can be used to make informed decisions about supplier selection and evaluation. A survey by ISM found that organizations that use procurement software are able to make more informed supplier selection decisions as a result of this increased access to data. 
  • Enhanced Collaboration: Procurement software facilitates collaboration between procurement and other departments, leading to improved supplier selection and evaluation processes. According to a survey by the Aberdeen Group, organizations that use procurement software are able to achieve a 20% increase in collaboration between procurement and other departments. 

Assessing Suppliers Effectively with Procurement Software Solutions 

Procurement software solutions can help businesses assess potential suppliers in a more efficient manner. By using the software, organizations can quickly identify suppliers that meet their requirements and eliminate those that do not. This allows organizations to narrow down their list of potential suppliers quickly and easily. 

By using procurement software for supplier selection and evaluation, organizations can streamline their supplier selection process and make informed decisions about their suppliers. By choosing the right procurement software for their needs, organizations can ensure they are making the most out of their supplier relationships. 

In conclusion, procurement software can provide significant benefits for supplier selection and evaluation, including a streamlined selection process, improved supplier evaluation, better supplier data, and enhanced collaboration. Companies such as Walmart, General Electric, and Pfizer have demonstrated the success that can be achieved with this technology. 

FactWise Source-to-Pay empowers you to increase reliance on well-performing vendors, discover new, pre-vetted suppliers that fit price, quality and delivery requirements, and offers holistic supplier performance analytics featuring customizable key supplier metrics. Generating win-win outcomes is easier with comprehensive performance metrics and diverse supplier lists.

About the Author

Stawan is the founder and CEO of FactWise. Before founding FactWise, Stawan was the NA TMT-Procurement Leader at McKinsey. Passionate about procurement, Stawan has 15 years’ experience in enabling clients of all sizes to achieve business impact via procurement.


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