Reinventing the Procurement Process: Strategically Restructuring Supplier Relationships

June 3, 2014 Procurement Peter

procurement-peter-globe-centered

Procurement Peter here. You may know me as part of the P2P Superheroes dream team, where I automated and maximized discounts, and gave my suppliers the freedom to choose if they want to be paid early. But how did I become a superhero? The first step was reinventing the procurement process, and here I'll show you why and how.


 

In the traditional, manual processes of procurement, many of us become overwhelmed by inefficiencies.  

We personally manage relationships with suppliers and manually prepare business proposals, while simultaneously negotiating payment terms, discount rates and pricing structure--all while eliminating rogue spending!

In spite of the sheer volume of paperwork and numerous hours spent eliminating rogue spending, the bottom line is that as procurement professionals, we really do care about maintaining relationships with our suppliers.  

We just want a better way to get our job done in order to strengthen relationships with suppliers and  maximize the opportunities to capture real discounts.

It’s time for us to stop having one-off discussions with our suppliers about various discount terms.  Instead, we need to automate negotiations and create standardized processes to empower suppliers to choose when they want to be paid early and thus, improving the supplier and buyer relationship.  

In fact, as a former procurement paper pusher turned Procurement Superhero, I quickly and seamlessly restructured my supplier relationships with a P2P platform that included eInvoicing, supplier self-services and comprehensive financing.

Now, when dealing with thousands of suppliers on a daily basis, the procurement process is effective and efficient, providing real business value to the company and improving our supplier relationships. 

Now, every invoice is transformed into an early payment opportunity.

This means happy suppliers who have an opportunity to choose when they want to be paid. We no longer have to spend countless hours negotiating upfront terms and we’re provided with a streamlined payment plan. 

With a P2P platform, you’ll reap the benefits of: 

  • Standardized processes and payments
  • Maximized opportunities for buyers to capture discounts
  • Real company savings by turning every invoice into a savings opportunity
  • Stronger supplier relationships by giving them self-service tools, electronic invoicing, and the freedom and flexibility to choose when they want to be paid 

By offering suppliers a platform where they have visibility into their invoices and payment statuses, eInvoicing capabilities, self-services, and comprehensive financing, procurement truly strengthens the entire supply chain.  They don’t call me a superhero for nothing!

We can all experience the many benefits of becoming Procurement Superheroes – after all, happy suppliers, who are more fulfilled and self-sufficient are better partners for the business as a whole.

For more information on Taulia and how we can help transform your procurement process, contact us.

Hear from my fellow P2P Supeheroes: 

Accounts Payable Adam
Shared Services Susan

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