Why Procure to Pay Systems Do Not Solve Compliance
4 MIN. READ
Purchasing and procurement are getting more attention these days, and for good reason. The once bland and boring process of buying essential business supplies is transforming into a sector that is crucial for the financial success of companies.
A procure to pay system is one of the more common means of procurement. While full of benefits, it does pose some risk, particularly in terms of compliance. Fortunately, Raiven's (formerly Qmerit's) eProcurement system offers a viable solution.
What are procure to pay systems?
The procurement process has many parts that weave between various employees and departments. From requisitions to purchasing to accounts payable and accounting, the process can get convoluted at times. Procure to pay systems are set up to simplify these issues.
This software aims to manage the purchasing process on a unified digital platform and enables ease of use for employees. A complete procure to pay system ties all of the steps during the purchasing process together and creates an end-to-end streamlined supply chain for your company.
These systems create a level of transparency and visibility into the purchasing habits of your business, help to save money, and reduce the complexity of the procurement process.
eProcurement and online marketplaces
Companies are also embracing eProcurement and online marketplaces at a fast clip. Electronic procurement is the process of buying supplies and equipment via a web-based platform or with other internet-based sites.
Online marketplaces are networks of suppliers that provide access to their products on a web-based platform designed for B2B activities. Similar to procure to pay systems, these sites make the purchasing process for companies easier and more transparent, which saves time and improves internal efficiencies.
These electronic marketplaces are exceedingly popular and provide a level of convenience that allows for millions of dollars worth of products to be purchased with the click of a mouse. Amazon and Alibaba are ubiquitous examples of marketplaces that are widely known and used daily.
Companies use marketplaces like these, filled with national suppliers and/or suppliers that have entered into exclusively negotiated contracts, to ensure low pricing, preferred deals and special offers not available to the general public.
This gives a level of assurance for business owners that they are getting great price per unit deals, quick shipping and dedicated online support from their providers.
However, one matter that is often overlooked and neglected with these systems is compliance.
While eProcurement systems and online marketplaces are great platforms to facilitate the ease of ordering supplies while offering lower preferred pricing and guaranteed rates, they still have challenges with compliance.
Noncompliance in these systems is rooted in one fatal act: rogue spending. This is a terrible habit where employees purchase products outside of your company's procurement guidelines, and it can cause serious issues within your business. Rogue spending typically ends up costing you money and adds an element of risk for your business.
Unfortunately, many of the available eProcurement systems and marketplaces (like Amazon) do nothing to prevent rogue spending or ensure employee compliance. Fortunately, Raiven has this covered.
Raiven's unique platform provides the solution
Raiven's intuitive system fits seamlessly into your day-to-day business and covers all bases for your business's purchasing activities, including:
Automated purchasing compliance
Visibility into employee purchasing habits
Money saved from improving compliance
Money lost due to non-compliance
Supplier performance ratings
Tracking and purchasing data analytics
Fast and easy purchasing
The Raiven browser extension is the solution for compliance issues. This slick tool aggregates products from your supplier network and provides options for similar items that your employees are searching for. Even if your employees attempt to purchase items from a non-approved source, the browser extension works in the background and presents a pop-up to a similar product from one of your approved suppliers.
This is a game-changer. Even if your team members forget or innocently try to purchase from different sites, the browser extension is smart enough and will always prompt users to choose the preferred and approved source. This will save you both money and headaches.
Reach out to Raiven today for more information and a demo.