How Improved Procurement Can Save Companies from COVID-19 fallout?
Among the adverse effects of the COVID-19 pandemic on the global economy, one of the worst-hit components has been the supply chain. The worldwide cessation of transport and logistics facilities has left the supply chain destroyed, and procurement processes have been consequently affected by it as well. For the economy to recover, and businesses to resume their production, procurement must first be re-instated with haste.
Due to the worldwide transportation, logistics and human-to-human contact limitations, the supply chain has suffered multiple blows, and the major impacts have been -
Overcrowding in warehouses
With a lack of road, sea and air transport, warehouses have been overcrowded, and massive losses have been suffered due to the expiration and damage of goods that have been in storage for too long.
Projected costs of transportation are rising
The projected costs of transportation post the lockdown are rising as the lockdowns are extended, with transport and logistics companies looking to recover the losses suffered during the lockdowns. With rising transportation costs, the overall procurement cost will also have to rise for vendors to balance their sheets.
Vendor interests are waning
Due to the severe disruptions in the supply chain, many smaller vendors are looking for different modes of income, and the overall interest in the role of being a vendor is waning. Many vendors have had to resort to finding other modes of income simply to maintain their livelihoods, and the prospect of the future difficulties in vendor activity is discouraging potential vendors from joining the trade.
Identify potential risks in Inventory Management
Companies, especially in the manufacturing sector, will need to urgently identify which of their inventory items and raw material requirements are at the greatest risk of unavailability. High-risk items such as hardware, electronics, construction materials, chemical ingredients, etc. will have to be sourced with great care. With digital Procurement to Pay software and automated Inventory Management Software, they will be able to access unified data structures that provide analysis tools and reports that will help them identify the risks.
Gain real-time awareness of the entire procurement cycle
Businesses that have a multifaceted procurement process, dealing with multiple vendors and inventory, will need to make sure that they are always aware of each moving part. Only such constant awareness will help them ensure that their inventory is always sufficiently stocked, and sudden or unexpected shortages or missing components don’t halt their manufacturing or service processes. With cloud-based digital Procurement to Pay Software, Vendor Management Software and Inventory Management Software, they can gain this awareness through mobile surveillance of inventory, vendor activity and real-time notification/alert systems.
Fill in the gaps made by the lockdown
With an e-procurement solution, companies can ensure that the lockdown-related social distancing and quarantine rules don’t interrupt their procurement cycle. With the ability to raise PRs and POs, facilitate multi-level approvals, track the GRN and IRN flows and finalize payment procedures all from one cloud-based platform, managers will be able to ensure productivity from their laptops or smartphones during the lockdown or quarantine conditions.
With an affordable, scalable and flexible suite of ERP software, the TYASuite ERP solution can help these small businesses transform their procurement to suit the post COVID-19 requirements. The TYASuite P2P module can help automate, streamline and digitalize the procurement to pay process, boosting productivity, efficiency and profitability within weeks of implementation.
Due to the COVID-19 economic fallout, TYASuite is now offering a 180-day FREE TRIAL, whereby companies can sign up and access the full range of services included in the TYASuite Cloud ERP software, completely free of charge for 6 months!
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