How to automate the procurement process

The procurement process can be automated completely by implementing a robust e-procurement platform. These tools start with strategic sourcing and perform a spend analysis on historical data to identify purchasing patterns and assess needs.

Following this, the requisitioning process commences with online sourcing methods, including RFPs and RFQs. Once the purchase requests are approved, the purchase orders are created and shared digitally with suppliers. Today, AI-driven analytics is mainly used to optimize supplier selection.

Once suppliers accept the purchase order, the system searches for an existing contract or prompts the buyers to create one. The purchase order is then tracked in real-time to understand its progress while the goods or services are delivered. Once the goods return note or service delivery invoice is received, the three-way matching process takes place.

Once the purchasing documents match, the invoice is forwarded for payment processing. This end-to-end automation of the procurement process minimizes manual effort, enhances transparency, and ensures compliance with regulatory and organizational policies, thereby driving efficiency throughout the entire process.

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