In the previous article<\/a> in our \u2018Moving From Purchasing Thinking to Procurement Thinking\u2019 series, we revealed the most common indicators that a business is ready to level-up its purchasing and embrace procurement thinking. We also discussed the actual cost of manually processing purchase orders, which, for some medium-sized manufacturers, can add up to almost $1M in just a handful of years.<\/p>\n In our latest article, we examine the benefits and challenges of taking the leap and digitalising and automating procurement.<\/p>\n Procurement is more than just another operational process. Organisations that fail to recognise this are missing out on its potential to drive growth and sharpen a business\u2019s competitive edge. Digitalisation and automation are crucial to this strategic approach, allowing organisations to streamline systems and optimise operations.<\/p>\n When considering a function as a strategic process, we must also consider how it can be optimised to achieve our goals. Digital transformation and automation of the procurement function are two key ways to do just that.<\/p>\n The digitalisation of procurement involves leveraging technology to streamline the procurement process. This can include using cloud-based procurement platforms, e-procurement tools, electronic catalogues, and online purchasing systems. By digitalising procurement processes, organisations can reduce manual work, enhance data accuracy, and achieve greater visibility into the procurement process.<\/p>\n Automation, on the other hand, involves using software and tools to eliminate manual tasks and automate workflows. This can include automating the approval process, contract management, and invoice processing. Automation can help organisations to reduce errors, increase efficiency, and save time and resources.<\/p>\n Combining digitalisation and automation allows procurement optimisation for maximum efficiency and accuracy. Procurement can be transformed from a time-consuming, manual process into a strategic function that drives business growth, enhances customer satisfaction, and adds value.<\/p>\n Visualise a world where your requisitioning and purchasing functions are seamlessly integrated, without a labour cost overhead. With complete automation, errors are all but gone, costs are down, and your team is empowered to dedicate their time and bandwidth to strategic, growth-driving initiatives.<\/p>\n You can rid your organisation of the inconvenience of manual procedures and unlock precious time and resources with innovative technology. It\u2019s possible to bid farewell to tedious paperwork and embrace streamlined efficiency that enables you to achieve more with less.<\/p>\n Time-saving is not the only benefit of this procurement strategy either. Digitalising and automating procurement processes offer several advantages that can transform your organisation\u2019s procurement function, enabling it to operate more efficiently and strategically.<\/p>\n Despite the potential benefits of digitalising and automating procurement, many organisations face significant obstacles to fully realising these advantages. According to a survey, only 2 per cent of organisations<\/a> have completely automated their procurement process, while 54 per cent have begun digitalising it.<\/p>\n A critical challenge is integration<\/strong>. Integrating different systems and processes can be complex and time-consuming. This is especially true when working with legacy systems that may not be designed to work with modern software, leading to inefficient and error-prone processes.<\/p>\n Another challenge is ensuring data quality<\/strong>. Accurate and consistent data is integral for procurement processes to work effectively, and errors or inconsistencies can lead to significant problems.<\/p>\n Limited support<\/strong> from executives and a lack of understanding of technology can also hinder progress in digitalising and automating procurement. Without executive buy-in, securing the necessary funding and resources to implement new systems and processes can be difficult. Similarly, if the procurement team lacks an understanding of the technology, it may not be able to utilise its potential fully.<\/p>\n The capability and availability of analytics resources<\/strong> are another challenge. With digitalised procurement processes, data is generated at a faster pace than ever before. However, without sufficient resources to analyse and make sense of this data, it can quickly become overwhelming and lead to missed opportunities for optimisation.<\/p>\n Finally, employee resistance<\/strong> to change can be a significant obstacle. Procurement processes are often deeply ingrained in an organisation\u2019s culture, and introducing new technology and methods can be met with resistance. Overcoming this requires clear communication, training, and a willingness to adapt to new ways of working.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.20.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_row _builder_version=”4.20.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.20.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/precisebusiness.com\/NL\/wp-content\/uploads\/sites\/3\/2023\/05\/Fully-automated-procurment-processes_web.svg” title_text=”Fully automated procurment processes_web” align=”center” _builder_version=”4.20.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_row _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”Text” _builder_version=”4.20.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]<\/p>\n To build a compelling case for digitalisation and automation and overcome the obstacles and challenges that may arise during the transition, you must first understand which procurement processes can be fully automated, and be aware of the specific automation advantages for each process. This includes the following:<\/p>\n While these processes and their activities are distinct and critical for the successful operation of a business, they are very much interlinked and closely related. <\/span><\/p>\n It doesn\u2019t take much of a leap to see how a deficit or bottleneck<\/a> in one area of the procurement process will impact other areas, and ultimately increase the cost of doing business. <\/span>Consider order management and inventory management activities. Effective order management requires accurate and up-to-date inventory information, and inventory management relies on accurate order data to help forecast demand and plan for future inventory needs. Both processes are essential for ensuring that a business can operate efficiently and effectively, meet customer demand, and maximise profitability.<\/span><\/p>\n It\u2019s also why more and more businesses are recognising the need for digitalisation and automation to overcome the challenges of manual procurement practices and achieve greater efficiency and cost savings. Combining digitalisation and automation allows procurement to become a strategic function that adds value, enhances customer satisfaction, and drives business growth.<\/span><\/p>\n In our next \u2018Moving From Purchasing Thinking to Procurement Thinking\u2019 article, we\u2019ll take a closer look at the software solutions available to meet the demands of your business and how the right software implementation partner can make all the difference. In the meantime, check out all our articles in the series.<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.27.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” min_height=”94px” custom_margin=”-35px|||||” global_colors_info=”{}”]<\/p>\n Book a Discovery Call<\/a>\u00a0with our ERP expert in the Benelux region to learn more about how an ERP system can transform your business.<\/p>\n Subscribe to our LinkedIn Newsletter<\/a>\u00a0and get alerts when we post about topics that matter to you.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" A deficit or bottleneck in one area of the procurement process will impact other areas, and ultimately increase the cost of doing business. Combining digitalisation and automation via an ERP system allows procurement to become a strategic function that adds value, enhances customer satisfaction, and drives business growth.<\/p>\n","protected":false},"author":412,"featured_media":32993,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":" Thirty-five days. Just over one month. That's all the time you have to submit the first aged care provider Quarterly Financial Report (QFR) after\u00a0the end of the July-September quarter.\u00a0<\/span><\/p>\r\n It might seem like a long lead time, but extracting and compiling data across many different business areas is time-consuming - especially if you don't have a single source of truth to tap into or a system that connects all business processes and enables automatic extraction of relevant data.<\/p>\r\n Instead, what lies ahead is hours and hours of manual data collection. You will need to check and double-check for human error. You will need to gather in-depth information from HR, Payroll, Operations, Governance, Facilities and Asset Management, IT, Food and Nutrition Services, and Finance. You will need to sift through reams of spreadsheets to extract the information you need. The thought of it is mind-boggling.<\/p>\r\n Your current processes only add to the complexity. They don't allow you to capture all the information required to meet stringent accountability, reporting, and record-keeping obligations, let alone the quality of care compliances tied to funding.<\/p>\r\n You've got 35 days, but you've done the math, and your quarterly reporting requirement could take four weeks to compile. To make matters worse, you are already operating with limited staff resources, and the extra admin work introduced following the Aged Care Reform<\/a> has left you struggling with the new pressures.<\/p>\r\n The future is overwhelming. Once this reporting period is finished, there's little time before the entire process is repeated. There is, however, a silver lining.<\/p>\r\n The data-gathering process will reveal a goldmine of information you can use to shape a business case for investing in improvement measures. An easier approach is needed - there's no denying it - and you've decided an ERP software system could be the answer. The right ERP<\/a> will equip your organisation with the tools needed to produce compliance reporting, pull together reporting data, and increase productivity and efficiency. All this equates to significant time and money savings.<\/p>\r\n A single source of truth is not a pipedream. It can be a reality. Here's why the new Aged Care QFR doesn't have to be a taxing time.<\/p>\r\n <\/p>\r\n The QFR has five distinct sections:<\/a><\/p>\r\n Residential aged care providers must submit four of the five sections, including the viability and prudential compliance questions, quarterly financial statements, residential care labour cost and hours reporting, and quarterly food and nutrition report.<\/p>\r\n Home care service providers must complete three of the five sections, including viability and prudential compliance questions, quarterly financial statements, and home care labour cost and hours reporting.<\/p>\r\n How difficult and time-consuming the reporting process is will depend on several factors, one being how you store your information. If you data is not stored in a unified systems, or can be easily extracted and consolidated into a central data store, you will have to invest more resources into your QFR process.<\/p>\r\n For example, you may have to draw from several source pools, including your CRM, payroll and accounting software, project management tools, and human capital management. If you can't easily navigate these tools yourself, you'll need to speak with various area managers and wait for them to response with the correct data.<\/p>\r\n From there, you'll need to collate the data, read through the information, identify relevant insights, and manipulate the data into spreadsheets. then, you'll need to double-check that you've entered everything error-free and that your formula's are working as they should be. Finally, you can submit the information to the department's online portal.<\/p>\r\n All government-funded aged care service providers must meet the Aged Care Quality Standards.<\/a> The QFR is one aspect of ensuring your organisation meets these stringent regulations. Even if human error is to blame, failing to provide accurate information can have far-reaching consequences, including:<\/p>\r\n Many of our prospective customers have shared business inefficiencies, challenges, and pain points with us, all of which have impacted their ability to generate accurate QFR's. So as you undertake your reporting tasks keep an eye out for the following. These are tell-tale signs your organisation is in need of a systems refresh.<\/p>\r\n The above pain points are all too familiar and investing in a system transformation is the only way to change things. If you feel compelled to present a strong business case highlighting the time and cost savings an ERP could deliver, here are three tips to sharpen your business case and secure buy-in for change:<\/p>\r\n Need help formulating your business case for a new ERP system? We can help.<\/p>\r\n Precise Business Solutions have extensive aged care industry-specific experience and purpose-built software to meet your unique requirements. We can help you find which parts of your organisation that are starting to hinder your efforts to grow. In a one-to-two hours hands-on workshop, we can help you uncover the root cause of your critical business challenges and lay the groundwork for project success. The best bit? It's absolutely FREE of charge.<\/p>\r\nWhat Does it Mean to Digitalise and Automate Procurement?<\/strong><\/h2>\n
What are the Key Benefits of Digitalising and Automating Procurement?<\/strong><\/h2>\n
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What are the Obstacles to Digitalising and Automating Procurement?<\/strong><\/h2>\n
Procurement Processes that can be Fully Automated<\/strong><\/h2>\n
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What’s Next?<\/strong><\/h2>\n
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Inspired to Act?<\/strong><\/h2>\n
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<\/a><\/p>\r\nWhat Information is Needed for Quarterly Financial Reporting?\u00a0\u00a0<\/strong><\/h2>\r\n
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How Difficult is it to Produce and Submit the Required Reports Manually?\u00a0<\/strong><\/h2>\r\n
What are the Risks of Reporting Manually?\u00a0<\/strong><\/h2>\r\n
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Take Note if you Experience These Manual Reporting Pain Points\u00a0<\/strong><\/h2>\r\n
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Three Tips to Improve Your Business Case for a Transformation\u00a0<\/strong><\/h2>\r\n
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Start Building Your Business Case to Drive Change Today\u00a0<\/strong>\u00a0<\/strong><\/h2>\r\n