A process can always be improved and that also applies to the purchasing process. There are always parts that can be accelerated or improved. Therefore, always look critically at the process. The more you improve, the more time and money it saves and that means more profit. The more efficient, the better.
Map the process
Mapping out a purchasing process is recommended. This way you can see step by step what can be improved. The process can be divided into 6 different steps, see below:
In each phase or step it is important to look at how efficient the process is. After all, it must run as smoothly as possible, so it is important to look for errors per phase so that they can be solved if necessary. When you look at the process with a helicopter view, you miss the details. That is why it is important to do this per phase.
Organize the process efficiently
We now know that we have to map out the entire process and see what can be improved for each phase, so that the process can be organized efficiently. But how do you organize a process efficiently? By means of source to pay service it is possible to organize a process efficiently, because source to pay provides 360 degrees insight into performance and expenditure. That way you can see exactly where there is still something to gain. Procure to pay is also possible to improve efficiency, but the insight is only limited to analysis and the purchased goods.
Making the purchasing process more efficient will also help reduce the TCO, an abbreviation for Total Cost of Ownership. That is the total amount spent on purchasing and owning a product or service.