Continuing with our series on the pillars of WeProcurement™ – a new, collaborative way to think about Purchase-to-Pay (P2P) automation – this post discusses the second key pillar of the approach: Intelligence.
What is intelligent purchasing software?
When we talk about Intelligence with WeProcurement, we’re not referring to analytics and reporting capabilities delivered in traditional procurement systems. Although those are extremely valuable, nearly every organization already has reporting and metrics. Intelligence in WeProcurement is about giving users the right information at the right time. It unburdens employees from understanding the procurement process – it gives them the expert knowledge to find what they need and easily make solid decisions. This makes it easier for users to take action in accordance with procurement goals and contribute towards strategic company initiatives and savings targets.
The WeProcurement brand of Intelligence is about steering users to the right choices, but not forcing them into rigid options that don’t meet their needs.
WeProcurement Intelligence
- Shows how requests affect budgets
- Suggests items that require zero approvals for faster delivery (e.g. – new hire kits)
- Flags items that require additional approvals
- Sends alerts for low inventory and automatic reorders
- Serves up information users need at the exact point they need it in the workstream without making them go look for it
- Removes superfluous information to lean overall processes.
What are the ways purchasing software can offer Intelligence in a WeProcurement approach?
As discussed in our post about Relevance, workflows should be designed to address the nuances and uniqueness of each type of user’s role, department, and buying categories. WeProcurement Intelligence builds on that pillar by looking at each step of the workflow and making assumptions about what that user might need to know to move to the next step and make the decision that best benefits everyone.
Here are a few examples:
- Travel plans: Maybe there are a group of users travelling to the same city for a conference. The eProcurement solution should allow them to order travel through the system, while serving up relevant information for booking those arrangements, like the most affordable or popular flight and hotel options. The system should also show them opportunities to share transportation like rental cars and taxis to help keep costs down.
- Zero approvals: Some items employees need that are required for daily work do not vary and can be setup in the system as pre-approved. One example of this is a new hire kit that would include things like a laptop, phone, badge, handbook, t-shirt, etc. Instead of making employees take the time to route these requests through the system, the purchasing software should suggest a new hire kit that can be filled without having to go through additional approval workflows.
- Availability of stock: Almost as equally important as giving users required information at the needed point without making them look for it, is keeping information they don’t need behind the scenes to lean the overall process. For example, if a user orders a new item that is actually stocked in a nearby warehouse, the system should recognize that and ship it to them from that location instead of spending company money to buy a new item. Ultimately, the user only cares that they get the item quickly – not where it comes from.
There are infinite configuration options that can be imagined when companies really think about the Intelligence their users need and don’t need when buying goods and services to do their jobs. By diving into the granular details of the process, these organizations reap the ultimate benefits of increased efficiency, more productivity, streamlined processes, reduced risk, less waste, and of course, significant savings.
To learn more about delivering Intelligence and the other key pillars of a WeProcurement approach, download the eBook and stay tuned for the next edition in this series where we’ll describe the Intelligence of WeProcurement in practice with a case example from a leading healthcare organization.
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