As entities that exist for the benefit of their members, mutuals often find themselves stretched to meet member demands while ensuring savings for the sustainability of the company. Many teams are subject to rigorous evaluation, particularly the procurement team.
From start to finish, the procurement process is evolving towards a more strategic function and the procurement team is routinely evaluated for its contribution to the overall business. With the ever-changing financial landscape and the introduction of technological advancements, the procure-to-pay process is well-positioned to see some changes.
The Changing Procurement Environment
The procure-to-pay process (P2P) process combines numerous finance department functions into one process. For most companies, the steps usually involve:
- Identification, authorisation and approval of requests
- Identification of suppliers, inquiries and receipt of quotation
- Negotiation and selection of vendor and purchase order acknowledgement
- Goods receipt, invoice recording, 3-way match and payment to supplier.
However, with procurement executives tasked with monumental goals while working with less personnel and capital, numerous factors are now at play.
Procurement executives cannot afford to ignore global economic events. If vendors and suppliers globalise, their supply bases may become more complex, introducing risk to the procurement chain. Having a global approach to procurement while mitigating risks requires stronger supplier performance management.
Advancements in technology have created a new standard for businesses in completing a purchasing cycle. What was once a 9-to-5 operation rooted in the company headquarters is now a 24/7 function that can be operated from multiple places. Procurement teams are now expected to be more agile and mobile to immediately address the needs of the business.
With technologies in place, mutuals are expected to adapt in order to help their members stay competitive as well as reap the benefits of automation.
Enhancing the Procurement Process
Dealing with so many people in and out of the organisation, companies are at risk of having a P2P process fraught with errors and inefficiencies. From managing purchase approval to ensuring supplier compliance – all throughout dealing with a high volume of paperwork – a great number of internal and external communications must be fulfilled accurately.
With the evolving needs and expectations of every industry, the demand for better processes is stronger than ever. The operation of leaner organisations calls for best practices as well as cost-effective and easy-to-use procurement technology.
Automation and outsourcing are two key solutions adopted by organisations to streamline the procurement process. Both solutions help our customers focus on their core capability, make the procurement process more cost-efficient and maintain compliance across the board. Both solutions are also offered by Mutual Marketplace.
Improve Procurement Process and Shorten Purchase Cycles
Improving the procurement process frees your team in order to find savings opportunities and focus on more important purchases. At the same time, it ensures that our customers receive supplies and products on time allowing them to remain competitive in the market.
Many procurement process activities can be completed without human intervention. We can digitise your entire buying process, dramatically simplifying the procurement process. Through the use of e-catalogues, mobile workflows and e-signatures for signing contracts, requisition to invocing is streamlined.
Our system is an end-to-end solution that reduces the purchasing time while keeping well-indexed records every step of the way. From evaluating suppliers to any RFX activity to paying the suppliers, our solutions are poised to improve operational performance.
With a system that records every purchase order, invoice, payment data and more, report generation can be done on demand. Records can be easily accessed and retrieved by authorised people without going through a file cabinet.
Cut Costs and Ensure Accurate Payment
We help mutuals reduce costs in supplies, processing and more. We use a P2P system that ensures your vendors and suppliers are paid the right amount at the right time. As our system automates the whole procurement process, you can reduce recruitment and run a leaner organisation.
Our system also improves spend visibility allowing you to identify gaps and unnecessary costs. Ensuring contract compliance, vendor SLA and implementing scorecards, our solutions lead to higher savings and increased supplier productivity.
Our network of contractors allows us to find the business that can best provide for your requirements at the best value. You enjoy access to bigger buying power, better deals and services. With our investment in the latest technologies, you have access to market-leading solutions and reliable support at the best rates.
Minimise Risks and Reduce Human Error
Our system reduces administration and paperwork. Fewer back-and-forth communications translate to less paperwork to monitor, secure from unauthorised personnel and destroy in the future. All information are digitally stored and indexed allowing for transparency, better reporting capability and ease of retrieving data – while saving valuable office space. Having a feature that evaluates suppliers, the system can identify preferred and non-compliant vendors, minimising contract risks.
Our system also improves internal integration, eliminating information asymmetries and enhancing collaboration across departments. This aids in ensuring compliance with bookkeeping policies and reduce chances of fraud. Additionally, the system has a record of every process, making it easier to trace errors.
With a team of industry experts in procurement, accounts payable, systems accounting and commercial law, we give a holistic recommendation on improving procurement strategy and planning.
Access Expert Knowledge
Mutual Marketplace is a procurement centre of excellence. We have a team of dedicated specialists who can provide insightful and meaningful advice on improving the procurement process. We adhere to the industry’s best practices as well as provide innovative solutions of our own. Our extensive experience with cooperative financial institutions gives us an in-depth understanding of the market’s procurement challenges as well as the mutuals’ aim to bring better services to their members. Our team will provide you with tailored solutions, custom fit for your organisation.
Practical Procurement Solutions
Mutual Marketplace is dedicated to helping cooperative financial institutions improve their sourcing activities. Owned by Great Southern Bank and People’s Choice, we work towards helping mutuals become more cost-efficient and enable them to focus more on their members.
We embody the purity of cooperative financial services’ purpose and put our partners’ needs at the centre of our business. To learn more about our procurement strategies, book a meeting with our experts.