Maximize Supplier Quality Using Procurement Software

Feb 9, 2022 | Supplier management

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Feb 9, 20223 min read

Procurement software can greatly improve supplier quality and reduce risks for organizations. Features such as price comparison, contract management, and automation capabilities can streamline processes, reduce manual errors, and improve supplier performance. A survey by Gartner found that 68% of organizations reported improved supplier performance with procurement software, with cost savings of up to 30%.

Procurement software is an invaluable tool for organizations looking to maintain high quality standards from their suppliers. By automating the procurement process, it helps businesses ensure that they are always receiving the best products and services from their suppliers. This article will explore the impact of procurement software on supplier quality, and provide tips for making the most of procurement software for supplier quality management. 

The Impact of Procurement Software on Supplier Quality 

Procurement software can have a dramatic impact on supplier quality. By streamlining the procurement process and providing detailed information on supplier performance, it can help organizations ensure that they are always getting the highest quality products and services from their suppliers. It also helps organizations better manage the supplier selection process, allowing them to evaluate potential suppliers before entering into a contract. This can help to reduce the risk of working with unreliable or low-quality suppliers. 

Maximizing Quality with Procurement Software 

In order to maximize the impact of procurement software on supplier quality, organizations need to ensure that they are utilizing the features and capabilities of the software to its full potential. This means taking advantage of features like price comparison and bid management, which can help organizations identify the most cost-effective suppliers and negotiate better deals. It also means taking advantage of features like contract management and supplier performance tracking, which can help organizations monitor and evaluate suppliers to ensure they are always delivering high quality goods and services. FactWise Source-to-Pay features an insightful and easy quotes comparison screen and also an intelligent negotiation automation that can be configured to respond on your behalf as per pre-defined parameters. Our supplier selection algorithm helps you prioritize preferred and well-performing vendors, and also discover new suppliers that match your requirements and quality standards. 

Organizations should also be sure to use their procurement software to its full advantage by leveraging features like data analysis and reporting. This can help organizations gain valuable insights into their supplier performance, enabling them to identify areas where they can improve processes and make better decisions in the future. On FactWise, teams can customize reports from across analytics modules including RfX analytics, supplier analytics, and historical analytics about their own procurement history. 

In addition, organizations should ensure that they are taking advantage of the automation capabilities of their procurement software. Automation can help streamline processes, reduce manual errors, and improve the accuracy of data. This can help organizations save time and money, while also ensuring that they are getting the best quality from their suppliers. With FactWise, teams can automate RfX creation, negotiations, allocations, PO creation, invoice processing all the way up to payments.  

Benefits of Utilizing Procurement Software 

Procurement software solutions for supplier quality management like FactWise offer several benefits to organizations, including improved supplier performance, reduced risks, and cost savings. Here are some statistics and user stories to support these benefits: 

  • Improved supplier performance: According to a survey by Gartner, 68% of organizations reported improved supplier performance through the use of procurement software. For example, Johnson Controls, a multinational conglomerate, was able to improve supplier performance by 40% after implementing a procurement software solution. 
  • Reduced risks: Procurement software helps organizations reduce risks associated with supplier non-compliance and product defects. For example, after implementing a procurement software solution, Caterpillar Inc., a construction and mining equipment manufacturer, was able to reduce supplier-related risks by 60%. 
  • Cost savings: Procurement software helps organizations reduce costs by automating manual processes, reducing errors, and improving supplier negotiation. According to a study by Accenture, organizations using procurement software can achieve up to 30% cost savings. For example, Lockheed Martin, an aerospace and defense company, was able to reduce procurement costs by 15% after implementing procurement software.  

Overall, procurement software is an invaluable tool for any organization looking to maintain high quality standards from their suppliers. By leveraging its features and capabilities, businesses can maximize their return on investment while ensuring they are always receiving the best value for their money. 

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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