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]]>For instance, you are a procurement manager at a mid-sized manufacturing company, and your days are consumed with juggling vendor negotiations, managing purchase orders, and ensuring timely deliveries. Despite your dedication, your team frequently faces stockouts, delayed, and rushed orders that eat into the company’s profits – and time. Why do these challenges persist?
Why Procurement Feels Like a Never-Ending Challenge
Issues such as poor visibility into processes, inefficient communication with suppliers, and difficulties in managing costs can create ongoing challenges. Let’s dig deeper.
- Process visibility: One significant issue is the lack of visibility and control over the procurement process. Businesses often operate with outdated systems that fail to provide real-time data and insights. This leads to poor decision-making, as teams cannot accurately forecast demand or monitor supplier performance. For your business, this means relying on spreadsheets and manual tracking, which are prone to human error and inefficiency.
- Inefficient communication processes: Another challenge is the cumbersome communication with suppliers. Without a centralised system, communication becomes fragmented. Your procurement team find themselves sifting through endless email threads, missing crucial updates, and struggling to coordinate with suppliers in different time zones. This disjointed communication not only slows the procurement process but also increases the risk of errors and misunderstandings.
- Cost management: Inconsistent pricing, hidden fees, and unexpected expenses can wreak havoc on a budget. Your procurement team often needs more historical data and benchmarks to negotiate the best deals. Additionally, managing multiple vendors without a streamlined process leads to missed opportunities for cost savings.
How can these challenges be solved?
How to Optimise Your Procurement Process With SeamlessProcure
SeamlessProcure makes managing procurement easy by centralising all your purchasing information in one place.
- Real-time data visibility and control: With SeamlessProcure, your business gains unprecedented visibility into its procurement activities. The software provides real-time data and analytics, allowing procurement teams to make informed decisions. This level of control minimises the risk of stockouts and simplifies inventory management, ensuring that the right products are available at the right time.
- Streamlined communication: SeamlessProcure centralises all supplier communications in one platform, eliminating the chaos of scattered emails and ensuring that everyone is on the same page. The result is a more efficient and error-free procurement process, reducing delays and enhancing supplier relationships.
- Cost Management: SeamlessProcure empowers your business to take control of costs. The software provides insights into pricing trends, historical data, and supplier performance, enabling better negotiation strategies.
Additionally, automated workflows reduce manual errors and ensure compliance with budget constraints.
In addition to all of this, SeamlessProcure is remarkably easy to use. Its intuitive interface ensures that users can navigate the system effortlessly, regardless of their technical proficiency.
SeamlessProcure also integrates with your existing systems, ensuring that your organisation does not have to overhaul their current IT infrastructure.
If you’d like to explore SeamlessProcure, sign up for our 30-day free trial, see how it works, and explore how it can transform your organisation’s procurement processes.
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]]>The post Procurement, Sourcing, and Purchasing: How Are They Different? appeared first on SeamlessProcure.
]]>Next, the focus shifts to sourcing. Think of sourcing as selecting the best partners for the journey. The company seeks out reliable suppliers who offer high-quality products at competitive prices. Sourcing involves finding vendors and building lasting relationships to ensure consistent support and value.
Finally, there’s purchasing. With the plan set and the suitable suppliers identified, it’s time to execute. Purchasing involves placing orders, processing payments, and receiving the goods. It’s where the planning and partner selection come together to meet the business’s needs.
In this article, we will explore how procurement, sourcing, and purchasing differ and how each plays a vital role in a business’s success.
What Are the Key Differences Between Procurement, Sourcing and Purchasing?
While procurement, sourcing and purchasing are interconnected, they serve different purposes within a company’s supply chain management. Below is a table that breaks down the differences between procurement, sourcing, and purchasing:
| Aspect | Procurement | Sourcing | Purchasing |
| Definition | The overall process of acquiring goods and services needed by a business. It includes everything from planning and finding suppliers to managing contracts and making purchases. | The specific part of procurement focused on finding and evaluating the right suppliers to provide what the business needs. | The actual act of buying the goods and services, including placing orders, making payments, and receiving products. |
| Focus | Big-picture strategy to get the best value for the company while meeting all its needs. | Finding the best suppliers who can provide quality products at the right price and time. | Ensuring the business gets the products or services it needs, when it needs them, by completing transactions. |
| Timeframe | Long-term planning that happens continuously. | Typically happens before any actual buying takes place; it’s proactive. | Happens as needed, based on the immediate requirements of the business; it’s reactive. |
| Objective | To manage the entire supply process efficiently and cost-effectively. | To secure reliable suppliers who can deliver consistent quality and value. | To complete purchases quickly and accurately to keep business operations running smoothly. |
| Real-Life Example | A restaurant chain wants to ensure it has a steady supply of fresh ingredients at the best prices. It sets up a procurement strategy to manage all its food supplies, from choosing vendors to managing contracts. | The restaurant chain looks for the best farms and food suppliers. They evaluate different suppliers based on the quality of produce, delivery times, and pricing, then decide who to work with long-term. | The restaurant manager places an order for vegetables with a chosen supplier, pays the invoice, and receives the delivery to use in the kitchen. |
| Key Activities | – Needs assessment. – Supplier sourcing and relationship management. – Contract negotiation and management. – Purchase order management. – Receiving and inspection. – Payment processing. – Inventory management. – Risk management. – Cost control and optimisation. – Procurement reporting and analytics. | – Researching suppliers. – Negotiating terms. – Selecting suppliers. | – Placing orders. – Processing payments. – Receiving and inspecting goods. |
| Importance | Ensures the business gets the best overall value and manages risks effectively. | Ensures the business works with suppliers that can reliably meet its needs over time. | Ensures the business has the necessary goods or services on hand when they’re needed. |
In a nutshell, procurement, sourcing, and purchasing are like different pieces of a puzzle that come together to help a business get what it needs. Procurement is the big-picture strategy that keeps everything on track; sourcing is about finding the right partners to work with, and purchasing is the final step where the business buys what it needs.
Whether you’re managing a very large, large, medium, or small enterprise, mastering procurement is key to your success. Plan strategically by using procurement management software that eases your operations. Sign up here, and enjoy a 30-day free trial.
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]]>What Is Procurement?
Procurement involves obtaining the goods and services a business needs to operate, including everything from raw materials and equipment to office supplies and outsourced services. It’s more than just buying items; it involves strategically selecting suppliers, negotiating contracts, and managing supplier relationships.
Some companies view procurement as encompassing the entire process from finding suppliers to handling payments. Others focus on tasks like placing orders and processing invoices. When using ERP software like SeamlessProcure, procurement generally includes managing the entire process of acquiring goods—securing the best prices, ensuring the right quantity and quality, and managing delivery costs. It also involves developing strong relationships with suppliers to ensure a reliable supply chain and better pricing and terms over time.
Types of Procurement
Procurement can be categorised based on how the items will be used and what exactly is being purchased:
- Direct Procurement: This type involves buying items essential for creating the company’s final products. For example, in manufacturing, direct procurement includes purchasing raw materials and components needed to produce goods. In retail, it involves buying products from wholesalers to be sold directly to customers.
- Indirect Procurement: Indirect procurement deals with items that support the company’s operations but aren’t directly tied to the production of goods or services for sale. This includes office supplies, furniture, marketing services, consulting, or equipment maintenance. While these items are necessary for smooth business operations, they don’t directly contribute to the final product.
- Goods Procurement: This category involves acquiring physical items, which can range from raw materials and machinery to office supplies. It also includes digital goods like software subscriptions. Managing goods procurement effectively requires strong supply chain management practices. Both direct and indirect procurement can fall under this category, depending on whether the goods are used in production or for operational purposes.
- Services Procurement: Services procurement secures services from external providers, such as hiring contractors, obtaining legal services, or arranging on-site security. Similar to goods procurement, it can be either direct or indirect. For example, a company might directly procure consulting services for a specific project (direct) or hire cleaning services for the office (indirect).
How Procurement Works
Procurement for businesses involves several essential steps to help businesses obtain the goods and services they need efficiently and cost-effectively:
- Sourcing: This step involves finding and evaluating potential suppliers who can provide the required goods or services. Sourcing includes researching different suppliers, comparing what they offer, and selecting the ones that deliver the best value in terms of quality, price, and reliability.
- Purchasing: Once a supplier is chosen, purchasing is the step where the actual buying takes place. This includes placing orders, ensuring order details are correct, and clarifying payment terms. It’s all about making the transaction happen smoothly.
- Contract Management: After the purchase, contract management oversees the agreements with suppliers to ensure they adhere to terms like timely delivery, maintaining quality standards, and honoring agreed prices. It also handles any issues that arise during contract fulfillment.
Each of these components is essential to the procurement process because they ensure a business can acquire what it needs at the best possible cost and quality, helping the company run smoothly and stay competitive.
Procurement vs. Purchasing: What’s the Difference?
Many people often confuse procurement with purchasing, thinking they’re the same thing. However, they are quite different:
- Purchasing: Primarily involves buying goods and services, handling day-to-day tasks such as creating and sending orders to suppliers, processing invoices, ensuring timely payments, and accepting deliveries. In summary, purchasing focuses on the immediate transactions and activities involved in acquiring what the business needs.
- Procurement: Encompasses everything involved in acquiring goods and services with a strategic approach. This includes choosing the right suppliers based on quality, cost, and reliability; building strong supplier relationships for long-term collaboration and better terms; planning for future needs; and using unified procurement software like SeamlessProcure to streamline and enhance procurement processes.
Thus, while purchasing deals with the specific tasks of buying and paying for goods and services, procurement covers the entire process and strategy of sourcing and managing those goods and services. Procurement is more comprehensive and focuses on creating value and improving efficiency in the long run.
How Technology-Enabled Procurement Keeps Your Business Running Smoothly
Procurement plays a crucial role in keeping a business running smoothly, and technology has made it much easier. Here’s how technology-enabled procurement contributes to business operations:
- Streamlines the Buying Process: Technology makes procurement for businesses faster and more efficient. With procurement software like SeamlessProcure, you can automate routine tasks such as issuing purchase orders and managing invoices. This means fewer manual errors and quicker processing, ensuring you get what you need without unnecessary delays.
- Improves Supplier Management: Procurement software allows you to keep track of all suppliers in one place, providing easy access to information about their performance, contact details, and contract terms. This helps build stronger supplier relationships and ensures quick resolution of any issues that arise.
- Manages Costs: Managing costs is a significant aspect of procurement for businesses. Procurement software enables you to find better deals, negotiate more effectively, and analyse spending patterns to identify savings opportunities, such as consolidating orders or switching suppliers. This helps cut costs and keep your budget under control.
- Increases Efficiency: Automation and digital tools make procurement faster and more efficient. Tasks that used to be time-consuming can now be completed quickly, freeing up your team to focus on more strategic activities. This boosts overall productivity and helps your business run smoothly.
Technology-enabled procurement simplifies and enhances purchasing processes, supplier management, cost control, and overall efficiency.
Final Thoughts on Procurement for Businesses
Procurement is far more than just a purchasing function—it is a strategic tool that can significantly impact a business’s profitability. In an increasingly competitive market, adopting and optimising procurement through software like SeamlessProcure is key to achieving greater profits and securing a stronger position in the industry.
Don’t just adopt any software; choose SeamlessProcure, a unified procurement software with the right integrations and tools built just for you. Click here to sign up and enjoy a 30-day free trial of easy procurement of items.
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]]>Like this company, many businesses in Kenya face similar challenges. However, the right procurement software can efficiently cause a change and significantly impact productivity and cost management.
In this article, we share an overview of procurement management systems, their features and present a list of the top 5 procurement software in Kenya.
What Is Procurement Management and What Challenges Do Businesses Face?
Procurement management ensures that the right products or services are obtained at the best possible price, delivered on time, and meet the required quality standards. Challenges businesses face in the manual procurement management process are:
- Lack of Transparency and Visibility: Without a centralised system, it’s difficult for businesses to efficiently track spending, manage budgets, and maintain an accurate overview of their procurement activities. This lack of visibility can lead to poor decision-making and unexpected costs.
- Inefficient Processes: Manual procurement processes are prone to errors, delays, and miscommunication. Approvals can take too long, resulting in missed opportunities or supply chain disruptions.
- Supplier Management Issues: Maintaining strong relationships with suppliers is crucial, but without the right tools, businesses may struggle to monitor supplier performance, negotiate favourable terms, or ensure timely deliveries.
- Compliance Risks: Adhering to internal policies and external regulations is essential in procurement. However, manual processes can make it challenging to enforce compliance, increasing the risk of fraud or legal issues.
- Cost Overruns: Without proper control over procurement activities, businesses may face budget overruns, overpayments, or unexpected expenses, which can negatively impact profitability.
Businesses must understand that by utilising procurement management software, procurement operations can overcome the aforementioned challenges.
What is Procurement Software?
Procurement software is a platform that automates and streamlines the procurement process within a business. The software helps businesses to manage the various stages of procurement, from identifying the need for goods or services to final payment and supplier management.
How does Procurement Software Benefits Businesses?
Here’s how it benefits businesses:
- Enhanced Visibility: Procurement software offers real-time insights into spending, supplier performance, and the status of purchase orders. This visibility allows businesses to make informed decisions and maintain better control over their procurement processes.
- Streamlined Processes: Procurement software reduces errors and speeds up the procurement cycle through automated tasks. This leads to faster delivery times and improved operational efficiency.
- Improved Supplier Relationships: Procurement software helps businesses track supplier performance, manage contracts, and negotiate better terms. This fosters stronger, more reliable relationships with suppliers, ensuring consistent quality and timely deliveries.
- Cost Control: With budget tracking, spend analysis and automated approval workflows, procurement software helps businesses avoid overspending and ensure that all purchases align with their financial goals.
Best Procurement Software for Kenyan Businesses in 2024
Here is a top 5 list of procurement management software:
1. SeamlessProcure
SeamlessProcure is the best procurement software in Kenya, and it maximises every expenditure through centralised procurement management, intelligent automation, and analytics.
SeamlessProcure is cloud-based and designed to meet the needs of modern businesses. In Kenya, where efficient procurement is vital to maintaining a competitive edge, SeamlessProcure is becoming a popular choice for companies looking to simplify their purchasing workflows, control spending, and improve supplier management. Key features of SeamlessProcure include:
- Planning & Budgeting
- Customisable Requisition & Approval Workflows
- Centralised Procurement Management
- Real-time Spend Analytics
- Easy ERP integration
- Inventory Management
SeamlessProcure enables businesses in Nigeria, Ghana, and Kenya to easily integrate with existing ERP and accounting systems for unified operations, gain visibility into procurement activities, save costs, automate processes, reduce errors, and more.
Creating an account on SeamlessProcure is simple. Visit www.seamlessprocure.com to sign up for a 30-day free trial.
2. SYSPRO
SYSPRO offers a robust procurement module that allows businesses in Kenya to manage the entire procurement process, from requisition to payment, in one integrated platform. SYSPRO procurement module is designed to streamline procurement activities, ensuring that businesses can acquire the goods and services they need at the best prices and terms. Features include:
- Supplier Management
- Requisition and Approval Workflows
- Budget Control and Spend Management
- Integration with ERP systems
- Reporting and Analytics
3. Precoro
Precoro is a procure-to-pay system aimed at small and mid-sized businesses. Although Integration with ERP systems is a challenge, this procurement software designed to help businesses automate their procurement processes. Features include:
- Order Management
- Budget Tracking
- Supplier Management
- Approval Workflows
Limitations of Precoro include:
- Inventory module has limited functionality.
- Search tool is in nascent stage, hence difficult to use.
- Integration with accounting solutions and ERP such as Netsuite, SAP, Quickbook is difficult.
- Data import feature and ease in creating deleting purchase orders needs improvement.
4. Coupa procurement
Coupa procurement allows organisations to see and manage all their spending in one place, simplifying purchase requisition, order processes, and real-time tracking. Features include:
- Procurement Lifecycle Management
- Supplier Risk Management
- Supply Chain Collaboration
Limitations of Coupa Include:
- Complicated navigation and difficulty in getting the hang of the platform.
- Process of payment is difficult.
- Customer service only possible via chat.
5. SAP Ariba
SAP Ariba is a leading procurement solution used by businesses worldwide, including those in Kenya. Although it has limited reporting capabilities, SAP Ariba provides a comprehensive suite of procurement applications, from sourcing, contract management, purchasing, and invoicing to spend management. Features are:
- End-to-end procurement management
- Supplier collaboration and performance tracking
- Contract management
- Real-time spend analysis
- Integration with SAP ERP systems
Limitations of SAP Ariba are:
- Inefficient customer support
- Complexity in navigating the software, requires a learning curve
- Reporting and analytics feature is not so advanced
- Lack of real-time notification
What Businesses Should Look Out for in a Procurement Software
When selecting a procurement software in Kenya, businesses should consider the following key factors:
1. User-Friendly Interface: The procurement software must be easy to use, with a clean interface that requires minimal training. SeamlessProcure ticks this off with its simple user-friendly interface.
2. Integration Capabilities: A procurement software must integrate seamlessly with your existing systems, such as ERP, accounting, and inventory management tools. SeamlessProcure integration allows for smooth data flow across platforms, reducing the need for manual data entry and minimising errors.
3. Cloud-Based Accessibility: Opt for a cloud-based solution that provides flexibility and accessibility from anywhere. Interestingly, SeamlessProcure is useful for businesses with multiple locations or remote teams, as it allows everyone to access the system in real-time, regardless of their location.
4. Scalability: As your business grows, your procurement needs will evolve. Choose a procurement software solution that can scale with your business, accommodate increasing volumes of transactions, suppliers, and additional users without compromising performance.
Here’s What Businesses Need to Do
Choosing the right procurement software for your business in Kenya can be challenging due to the numerous available softwares. However, choosing SeamlessProcure, helps your business to spend smarter and grow faster.
SeamlessProcure optimises procurement management by streamlining manual processes and eliminating rogue spend. With informed purchasing decisions at its core, our platform enables precise cost control and curbs operational inefficiencies.
Experience the ease of procurement with a 30-day free trial. Click here to sign up and optimise your procurement process.
SeamlessProcure is the best procurement software in Nigeria, Ghana, Kenya and is trusted by top business leaders in Africa.
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]]>Whether managing supply chains, handling purchase orders, or overseeing vendor relationships, procurement software can significantly enhance your workflow. Here’s a look at some of the best procurement software options available in Nigeria.
1. SeamlessProcure Procurement Software
SeamlessProcure is a leading procurement software and the best procurement software in Nigeria that maximises every spend through centralised procurement management, intelligent automation and analytics.
SeamlessProcure is cloud-based and designed to meet the needs of modern businesses. Offering a comprehensive suite of features, SeamlessProcure streamlines the entire procurement process, ensuring businesses can easily and precisely manage their purchasing activities. Key features include:
- Planning & Budgeting
- Customisable Requisition & Approval Workflows
- Centralised Procurement Management
- Real-time Spend Analytics
- Easy ERP integration
- Inventory Management
SeamlessProcure enables businesses in Nigeria, Ghana, and Kenya to easily integrate with existing ERP and accounting systems for unified operations, gain visibility into procurement activities, save costs, automate processes, reduce errors, and more.
Creating an account on SeamlessProcure is simple. Visit www.seamlessprocure.com to sign up for a 30-day free trial.
2. Sysserve Nigeria
Sysserve Nigeria offers procurement services in Nigeria and is recognised for its commitment to delivering technology products and services tailored to meet the needs of businesses. Features include:
- Asset Management
- Vendor & Supplier Management
- Inventory Management
3. Fraxion Procurement Software
Fraxion is a procurement software that enables businesses to manage their purchasing processes with efficiency and control. Fraxion offers a range of features that help organisations reduce costs, ensure compliance, and streamline their entire procurement lifecycle. Features include:
- Spend Management
- Approval Workflows
- Budget Control
- Supplier Management
- Expense Reporting
- Analytics and Reporting
- Cloud-Based Platform
4. ProcureAgent
ProcureAgent is designed to simplify and optimise the procurement process for businesses of all sizes. Key features include:
- Procurement Management
- Supplier Relationship Management
- Spend Analysis
- Approval Workflows
- Budget Tracking
What Businesses Should Look out for in Procurement Software
When selecting a procurement software in Nigeria, businesses should consider the following key factors:
1. User-Friendly Interface: The procurement software must be easy to use, with a clean interface that requires minimal training. SeamlessProcure ticks this off with its simple, user-friendly interface.
2. Integration Capabilities: A procurement software must integrate seamlessly with your existing systems, such as ERP, accounting, and inventory management tools. SeamlessProcure integration allows for smooth data flow across platforms, reducing the need for manual data entry and minimising errors.
3. Cloud-Based Accessibility: Opt for a cloud-based solution that provides flexibility and accessibility from anywhere. Interestingly, SeamlessProcure is helpful for businesses with multiple locations, as it allows everyone to access the system in real-time, regardless of their location.
4. Scalability: As your business grows, your procurement needs will evolve. Choose a procurement software solution that can scale with your business and accommodate increasing volumes of transactions, suppliers, and additional users without compromising performance.
Here’s What You Need to Do
However, choosing SeamlessProcure helps your business to spend smarter and grow faster.
SeamlessProcure optimises procurement management by streamlining manual processes and eliminating rogue spending. With informed purchasing decisions at its core, our platform enables precise cost control and curbs operational inefficiencies.
Experience the ease of procurement with a 30-day free trial. Click here to sign up and optimise your procurement process.
SeamlessProcure is the best procurement software in Nigeria, Ghana, Kenya and is trusted by top business leaders in Africa.
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