Time and Cost to Manage Vendors and Purchases

  • You spend a lot of time managing low dollar purchases. A high percentage of your transactions are under $2,500, and a high percentage of those transactions are of your total dollar spent for those small purchases. Too much time is spent on purchase requisitions, purchase orders, and invoicing. It is a manual, paper-based process, and your cost/transaction is too high.
  • You manually track merchant data. You do not have easy access to tax information. It is difficult to track purchases made with each merchant, and you are unable to negotiate special pricing based on volume purchases. You think you may be losing a lot of money because of this, but you are unable to take advantage of financing options.
  • It takes a lot of time to assign vendors in your ERM. It is a manual process, but you can’t even track it by a transaction basis. You have to manage all vendors individually, as you cannot group them. It is a manual, highly time-consuming process.

About the Author: AJ Amjad Khanmohamed

Leave a Reply

Your email address will not be published.