The procurement process is a bundle of paperwork. The process requires multiple purchase executives to constantly review and evaluate procurement documents to achieve the best bargains. Miscommunication, back-and-forth e-mail communication, or delayed delivery of procurement documents such as purchase orders has a cascading effect on the bottom line of the company.
An effective document management solution makes the procurement process more efficient and easier to track. It consolidates the procurement documentation and manages activities such as collating and analyzing proposals, sharing the proposals for internal evaluation, issuing and approving purchase orders, e-sign contracts, approving invoices, and so on. Workflows, online document sharing, e-signature, storage, and version control speed up the procurement process and allow purchase managers to focus on critical activities like decision-making and strategizing.
What are the common procurement documents?
Here’s a list of common procurement documents:
- Request for Quotation (RFQ)
- Request for Information (RFI)
- Request for Proposal (RFP)
- Invitation for Bid (IFB)
- Request for Bid (RFB)
- Purchase Order (PO)
- Purchase Contract or Agreement
- Seller Proposal
- Delivery Note
Automating procurement using a document management tool
You can use a document management tool to issue a purchase order, route it through multiple review and approval levels. From tracking the purchase order, sharing the purchase order with your vendor, to receipt and acceptance of the invoice, a document management tool can automate all the major steps in the procurement process.
Ready-to-use templates help you create interactive procurement documents
Modern document tools provide an integrated template library with a range of business document templates. A wide array of digitized templates for all types of procurement needs make it easier for procurement professionals as they don’t have to create each document from scratch. Organizations can customize these templates to add their contact information, products, terms and conditions, contracts, and payment terms. With only a handful of information to be added, documentation tools make it much easier to create and manage procurement documents.
Easy-to-use document builder saves time and effort
Document management tools also provide procurement managers with a canvas to customize their documents. A drag-and-drop editor allows you to easily add text, images, and tables, which can be used to create professional-looking and branded procurement documents. For an important document such as purchase order, accuracy is critical. With a built-in-content library, drag-and-drop document builder blocks, you can create and distribute professional and accurate procurement documents.
Better collaboration means faster negotiation
You can exchange the documents digitally with your colleagues and share notes and conduct negotiations with your vendors. Simultaneously, multiple stakeholders can access, view, and edit procurement documents remotely. They can also devote their time to review the documents as per their convenience, leading to flexible collaboration. Once reviewed and approved, the tool can route the document into the appropriate third-party application or can be stored in its repository. The notification feature informs the authorized parties or individuals when the document needs their attention, which ensures a quick response. This momentum in negotiations enables the parties to clinch mutually beneficial deals.
Workflows automate your approval processes and improve efficiency
Purchase managers often deal with misplaced purchase orders, submission and approval delays, lost receipts, or uncontrolled spending. With workflows, you can eliminate costly and time-consuming manual routing of documents and data entry errors. Provision to add multiple approval levels for larger spend requests, and auto-approval of standard documents make your workflow more effective.
Single repository for your procurement data enhances data protection and availability
When working with multiple suppliers and vendors, procurement professionals have to keep track of large amounts of data. It can be daunting to manage when physical documents are stored across different cabinets across multiple locations. With a single digital repository to store all the documents, the tool lets you access your documents anytime anywhere. It provides you with the flexibility to define how you classify and categorize your documents. It includes the ability to search and retrieve your documents easily. Moreover, a good document management tool traces detailed user access information related to each document in the system.
Companies end up using multiple point solutions such as a word processor, workflow system, shared drive, email, and data integration solutions to manage their procurement process. It is neither cost-effective nor productive to maintain so many disparate systems.
Revv is an all-in-one workflow-based document management solution. Softwares like Revv can easily automate your procurement documentation process, allowing all authorized members of your team to access procurement documents from different locations and collaborate. You can get over the challenge of collating a compressive list of terms and conditions for each procurement document with a readymade template from our repository. It gets your documents signed and approved in one go by using the advanced e-signature feature. Sign up with Revv and try the free plan.