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The strategic sourcing process is a cycle, so it cannot be done once and forgotten about. A cycle approach to […]
Procurement Industries
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5 minute read
Written by
Logan Price
Academic Institutions are often bound by tight budgets, mandates, and deadlines. As a result, innovative solutions such as procurement software have been recommended to many schools with the goal of helping them save time and money.
Moving into a more digital way of operating can be intimidating, but it may be the best way to eliminate several inefficiencies in the current purchasing process. These systems are not guaranteed to solve every financial problem an academic institution faces, but they can certainly help make the procurement process a lot easier.
This article comprehensively explains what procurement software is and how it is used. We also cover some of the most common challenges academic institutions face in their procurement processes and a simple way to solve all their procurement problems.
Keep reading to find out how you can save time and money while streamlining your procurement operations.
Procurement is defined as the act of obtaining goods or services from a third party, typically for business purposes. Procurement Software is a digital tool that simplifies the procurement process by taking all the spreadsheets, paper forms, and slow approvals that drain time and putting all purchasing needs into one accessible computer program or suite.
Also known as e-Procurement, this software automates the process of purchasing materials and maintaining an inventory of goods.
Procurement software is typically used for the following reasons:
Each industry has procurement needs, and such processes require preparation, solicitation, and payment processing, all of which usually involve multiple departments within an organization. In a world where time is a valuable (and often scarce) resource, e-procurement software can significantly save time and money.
The education sector, in particular, can greatly benefit from e-procurement solutions because budget cuts, outdated processes, and limited resources often mean that employees in educational institutions are required to do more with less. Therefore, educators are doubling as purchasing managers to save resources and have less time to focus on their teaching. A software system that can streamline this process could be the solution to this problem.
There is no doubt that better supply chain solutions and processes are needed to cope with the fact that, in academic institutions, several departments operate simultaneously, but each has its own procurement needs. However, before problems can be solved, they need to be identified. Some of the most common procurement problems faced by education institutions are:
Tunnel-Vision Spending: According to the National Association of Educational Procurement, approximately 91% of spending goes to the top 20% of vendors. In layman’s terms, this means that educators frequently purchase from the same vendor to save time. Unfortunately, this tunnel-vision spending method implies that not enough effort is being put into the sourcing process. Simply put, the same vendor or supplier is used repeatedly when there may be one with better services and prices.
Maverick Spending: Higher education institutions and schools suffer from a lack of cohesive sourcing approval processes and purchasing processes. A staggering 38% of resources in academic institutions are reportedly purchased using pCards. By using purchasing cards, the internal organization is compromised, and spending becomes nearly impossible to track.
Poor Collaboration: Many universities spend in institutional silos when they could be teaming up and ordering together, which can significantly reduce costs. This is probably done to save valuable time, which educators are constantly pressed for.
Lack of Skilled and Experienced Procurement Staff Members: Educators are trained to educate. When they are forced to double as purchasing managers due to budget cuts or a lack of resources, the processes may not be carried out correctly because Purchase Order processes (PO processes) and procurement are not their areas of expertise.
A Lack of Transparency: Schools, especially higher-education facilities, need to be particularly transparent in the procurement process. When crucial information is withheld, a procurement problem can be created that prevents an organization’s preferred suppliers from offering enough value to them. Transparency is essential in providing necessary insights in procurement. It helps avoid duplation of orders and errors, eliminates the opportunity for illegal activity, makes the procurement process a lot easier, and identifies opportunities to reduce your costs.
Schools and higher education institutions like universities are especially susceptible to spending waste due to fragmented requisition and approval processes, low cross-departmental collaboration, and lack of transparency. With a centralized education procurement system like Tradogram, these challenges can be eliminated.
Tradogram’s e-procurement software addresses and solves all the challenges mentioned above, and more. Tradogram allows educators to focus their attention where it is most needed most: teaching.
Here is how Tradogram can help you streamline and automate every step of the procurement process.
Tradogram is an award-winning procurement software that makes the entire procurement process a breeze. That is why it is trusted by a long list of academic institutions and other businesses. Even with its long list of features, it remains intuitive and extremely easy to use, so even people without extensive knowledge of technology and procurement can operate the system.
Tradogram’s mission is to use its affordable, flexible platform to take business spend management to the next level. After launching in 2014, Tradogram has been able to help businesses throughout the world and currently has active users in over 80 countries. These users log into Tradogram daily to manage their procurement processes.
Tradogram is shaping the future of business spend management. If you would like to be a part of that future, get in touch with us and ask about our affordable pricing offers. From basic memberships to premium and enterprise memberships, you are bound to find an option that suits your needs and your budget.
We even allow you to try our software for free or upgrade to a premium membership for a low monthly cost. To help you get started, you can create a free account or request a live demo! With the live demonstrations, all you need to do is fill out a form, and one of Tradogram’s product experts will reach out to you to set up the demonstration.
Create a free account or request a live demo