As a Purchasing Manager or Supply Manager in an organization, there are several key indicators that can alert you to the need to implement a software system or automate the process to efficiently manage the entire supply cycle. Here is the list of five alerts, ranked by impact and how software can help address them:
Alert list to know if you need software
1. Frequent errors and rework (Purchasing precision)
- Warning: Order errors and improper deliveries can lead to significant losses in terms of time and money.
- How software can help: Supply management software can reduce human errors by automating order management, verifying invoices and deliveries accurately. A study by the Institute of Purchasing Management and Administration estimated that automating purchasing processes can reduce errors by 50% , which translates into considerable savings.
2. Delays in deliveries (Supply chain efficiency)
- Alert: Delivery delays can affect production and customer satisfaction.
- How the software can help: The software provides real-time visibility into the status of orders, helping to anticipate delays and take corrective action. According to a report from Aberdeen Group, companies that implement supply chain management software can experience a 20% improvement in delivery fulfillment .
3. Uncontrolled growth of suppliers (Supplier Management)
- Alert: A large number of suppliers without efficient management can result in quality problems, lack of cost control and difficulties in managing supplier relationships.
- How software can help: Supply management software can consolidate supplier information, evaluate supplier performance, and automate supplier selection and tracking. According to the Supply Research Institute, supplier consolidation can reduce procurement costs by 20% on average.
4. Lack of regulatory compliance or quality standards (Compliance and quality)
- Alert: Failure to comply with regulations or quality standards may result in sanctions, loss of reputation and loss of customers.
- How software can help: Software can automate compliance tracking and documentation, reducing the risk of non-compliance. According to a Gartner report, compliance can be improved by 30% through process automation and document management.
5. Difficulty analyzing data and making strategic decisions (Data-driven decision making)
- Alert: If the organization lacks updated information or data to make strategic decisions in purchasing and sourcing, it may miss opportunities for optimization and efficiency.
- How software can help: Supply management software can provide real-time analytics, allowing you to make informed decisions about costs, supplier performance, and purchasing strategies. According to a Deloitte report, data-driven decision making can improve profitability by 5% on average per year .
