Organizations and top companies need to have good supplier management software. The software maintains all suppliers’ data and documentation in one location. So if a CEO, manager, or procurement team wants to find information about certain suppliers, like how much they spend on specific suppliers, they can get all that information through the software. So organizations should invest in the right supplier management software to streamline their procurement processes. Keep reading to learn more.
Benefits of a Supplier Management Software
Before we look at the factors to consider when selecting supplier management software for your business, we need to look at the benefits of this tool. Here are some benefits:
- Can automate supply chain – The supply chain can be automated where suppliers go through an onboarding process and can bid for tenders. They can then send quotations to the companies which will be evaluated, and those who are selected are authorized to deliver orders. Automation makes the whole process simple. It also makes it easy for companies to get products and services at competitive prices from diverse suppliers.
- Can help save procurement costs – Most supplier management solutions come with a reverse auction or e-bidding software, allowing suppliers to bid in real time. As a result, the company or organization can save significant procurement costs that could have been spent in the absence of the software. Additionally, the company can compare the bidding prices and choose a supplier ready to supply goods or services at competitive prices.
- Easy to track suppliers – Supplier management software allows the organization to manage and maintains suppliers’ data, records, and documentation in one place. It also automatically tracks and stores supplier information. So it is easier for a company to know qualified suppliers. Additionally, it helps track product delivery dates and even monitor the quality of what was delivered. Tracking can help an organization separate trustworthy suppliers from bad ones. And that will allow a company to work with only trusted suppliers, increasing product quality and even boosting efficiency.
- Reduced workload on procurement team – An organization that invests in supply management software ensures that there is a reduced workload on the procurement team. This is because the software can help automate several steps in the supply chain while fewer steps are done manually. A good software vendor with transparent pricing structures can help your company choose software with all the necessary features, like supplier pre-qualification, supplier bidding, invoices, tracking & reporting, and other features, depending on your budget and procurement needs.
- Increases buyer-supplier collaboration – This software can enhance buyer and supplier collaboration. That can improve their relationship making the whole supply chain process easy and less expensive. The supplier will understand the organization’s goals and must supply quality products/services that will enable them to achieve the said goals. On the other hand, organizations must pay the suppliers fairly and on time. In case of a problem, it can be addressed on time to keep the mutual relationship strong.
Factors to Consider When Choosing a Supplier Management Software
Now that you know how important supplier management software is, you need to learn how you can select the best one on the market. Here are important things you need to look at:
Features of Software
Supplier management solutions have different features. These features allow the tool to manage and store suppliers’ data and information. They also allow vendors to have different transparent pricing structures. So one can purchase software or a package based on the required features. It is advisable to purchase a package or software with advanced features allowing for bidding, strategic sourcing, supplier pre-qualification, invoicing, and more. That will ensure most steps in the supply chain are automated or made easy.
Check Customer Reviews
When choosing supplier management software for your business or organization, you need to research. This will help you know different reliable solutions that can add value to your organization. You should read customer reviews of different software on the market. Software with many positive reviews and recommendations will likely serve you better. Avoid supplier management apps with many negative reviews and comments on their websites and social media platforms.
Ask for Recommendations
It is also advisable to ask for recommendations from your team and other businesses. The recommendations will help you know the effective software you can purchase for your organization. Software recommended by many businesses and individuals is a better option. But before you buy, do due diligence to confirm if indeed the software is good for your organization or not. You can use their trial version to confirm that.
Different supplier management solutions are available at different price tags. Most are available on a subscription payment model where you pay a certain amount to use the software for a specific time. You can also get one that you pay a certain amount for and use for a lifetime. So you have to be careful to choose a software vendor with transparent pricing structures. This will ensure the vendor doesn’t trick you along the way by increasing subscription fees or adding hidden charges to your subscription fees.
You should look at the pricing model and go for the one your organization is comfortable with. Paying for software yearly is a better option. So choose a company offering supplier management software at reasonable yearly fees. Make sure you understand what is included in the package. Note that cheaper solutions have fewer features, while expensive packages have more advanced features.
The software can experience downtime or malfunction along the way. What can you do at such a time? You will need the support services of the vendor. So before you choose software, find out if they offer support services and how much it will cost you. Also, ask about their response time. You don’t want to purchase a solution from a vendor who does not respond immediately. If you don’t consider this factor, you will have a rough time when the software malfunctions when you need it most. A software vendor with a stand-by support team is what you need.