5 Best Practices to Ensure Regulatory Compliance of Your Procurement Software

Apr 28, 2022 | Procurement tools and solutions

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Apr 28, 20223 min read

Ensure regulatory compliance with procurement software by conducting a regulatory review, implementing controls and processes, regularly updating policies, training employees, and partnering with reputable vendors. Regular monitoring and evaluation can ensure the software is being used in a compliant manner.

Regulatory compliance is essential for businesses to remain compliant with laws and regulations. Maintaining compliance can be a time-consuming process, especially for businesses that are dealing with large volumes of data or complex transactions. Fortunately, procurement software can help streamline the process and ensure that businesses remain compliant with the regulations. 

Understanding Regulatory Compliance with Procurement Software 

Procurement software solutions, such as FactWise, is designed to help streamline various aspects of the procurement process, such as tracking spending, negotiating contracts, and managing vendor relationships. It can also be used to help ensure that businesses remain compliant with applicable regulations. By integrating regulatory compliance into the procurement process, businesses can ensure that they are meeting all applicable laws and regulations. 

Procurement software can provide a number of benefits when it comes to regulatory compliance. It can automate the process of tracking and reporting compliance-related information, allowing businesses to quickly and accurately determine whether they are in compliance. It can also help businesses identify any potential areas of non-compliance before they become an issue. Finally, procurement software can be used to streamline the process of documenting compliance activities, ensuring that all relevant information is readily available. 

In addition, procurement software can help businesses stay up-to-date on any changes to applicable regulations. By providing notifications of any changes, businesses can ensure that they are always in compliance with the latest regulations. This can help businesses avoid costly fines and penalties that can result from non-compliance. 

Best Practices for Regulatory Compliance with Procurement Software 

Ensuring compliance with regulations is a crucial aspect of using procurement software. Here are some steps companies can take to ensure compliance: 

  • Conduct a regulatory review - Before implementing procurement software, it is important to review all relevant regulations and ensure that the software is compliant. Companies like Johnson & Johnson have conducted comprehensive regulatory reviews to ensure their procurement software adheres to all relevant regulations. 
  • Implement controls and processes - Procurement software should include controls and processes to ensure compliance with regulations, such as access controls, audit trails, and reporting capabilities. Companies like Amazon have implemented strict controls and processes to ensure compliance with regulations such as the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulation Supplement (DFARS). 
  • Regularly review and update policies - Regulations can change over time, so it is important to regularly review and update policies and procedures to ensure compliance. Companies like IBM have established a regular review process to ensure their procurement software remains compliant with regulations. 
  • Train employees - Employees should be trained on the importance of compliance and how to use the procurement software in a compliant manner. Companies like Microsoft have provided extensive training to employees on how to use procurement software in a compliant manner. 
  • Partner with a reputable vendor - It is important to partner with a reputable vendor who has experience with compliance and can provide support and guidance in this area. Companies like Alphabet, parent company of Google, have partnered with leading vendors to ensure their procurement software is compliant with regulations. 

It is important to regularly monitor and evaluate compliance with regulations to ensure the procurement software is being used in a compliant manner. This can be done through data analysis, user feedback, and regular audits to ensure that regulations are being followed and to identify areas for improvement. 

At FactWise, we are committed to building truly distinctive procurement software solutions that delight users and provide sustainable positive impact to the organizations we serve. We do this by providing transparency and insights to leaders (31% increase in governance), streamlining and automating processes to improve efficiency (20% increase in efficiency), and driving bottom-line impact by unlocking savings potential (25% cost reduction for direct spend). 

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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