Optimising the procurement process: why do it now

Procurement, also referred to as purchasing or the Procurement process, encompasses all the activities surrounding the procurement of products and services that are essential to business operations. It goes beyond purchasing: it is about strategic management of suppliers, contracts and budgets.

It is crucial for organisations that these processes run efficiently. Whether you are a Procurement manager looking to add structure or a CPO who wants maximum control over spending: getting a grip on Procurement is the key to success.

Optimising the procurement process means striving to make it as efficient, transparent and reliable as possible. This means fewer manual actions, fewer errors and better cooperation between departments and with suppliers. "As soon as you make procurement data centrally available, insights arise that you can really steer on," says Sander Veenstra, Product Manager at ISPnext. "That makes Procurement a strategic tool."

• Cost savings: By reducing maverick buying and obtaining more favourable contract terms.
• Faster turnaround times: Thanks to automation and the use of procurement software, approvals and invoice processing are much faster.
• Better compliance: Complying with laws and regulations becomes easier, such as CSRD reporting requirements.
• Data-driven working: A Source-to-Pay platform creates a single truth about all procurement data.
• More sustainable supply chain: You can test suppliers on ESG criteria and integrate sustainability goals into your procurement strategy.

• Needs analysis: Internal signalling of procurement needs.
• Supplier selection: Criteria such as sustainability, reliability and price are leading.
• Contract management: Clear agreements on delivery, price, service levels.
• Ordering and receiving: Digitise processes via e-procurement tools.
• Invoice processing: Automatic matching of invoice, order and receipt.
• Monitoring and reporting: Insight into KPIs and supplier performance.

A successful implementation starts with a clear vision. Establish what you want to achieve as an organisation and then determine where you can make the most impact. Start with digitising invoice processing or contract management, for example.

In addition, ensure support. Involve key people like Finance, Legal, IT and, of course, the Procurement manager.

"Optimisation is not an IT party. The business has to understand it, want it and use it," says Sander. "Only then will you make structural progress." Preferably choose a solution that integrates with your existing ERP system and is scalable to other departments or countries.