Mobile procurement involves using mobile devices to facilitate and streamline purchasing processes in a business setting. This procurement method has become increasingly popular as businesses seek to improve efficiency and cost savings while maintaining quality control.
Mobile procurement and purchasing software offers numerous advantages over traditional methods of purchase order processing, including greater flexibility, mobile device approvals, improved visibility into inventory levels and pricing information, faster turnaround times for orders placed, and better accessibility for remote personnel.
With these benefits come security risks associated with users conducting transactions via a mobile web app or mobile device. But they are often outweighed by opportunities for business operations by procurement professionals enhancing the procurement and purchasing process further by leveraging cutting-edge mobile technologies, like artificial intelligence (AI).
Let’s look at mobile procurement and its potential for business success.
What is Mobile Procurement?
Mobile procurement is a process where businesses use mobile devices to facilitate and streamline the purchase and receipt of goods and services. This can include anything from ordering supplies to negotiating contracts and making payments.
The mobile device used in this process might be a smartphone, tablet, or other wearable technology like a smartwatch.
Mobile procurement technology also allows for automated processes and operating systems like purchase approvals that reduce paperwork while maintaining quality control over the purchasing process. It also helps streamline interdepartmental communication by granting users access to real-time updates on orders and invoices.
The Benefits of Mobile Procurement
Benefits of mobile procurement are:
- Flexibility
- Speed
- Ease of use for remote personnel and better user experience
- Quicker approvals for payments by using a mobile app
- Improved visibility into inventory levels, pricing information, and spend management
User-friendly, mobile procurement is available for performing some key procurement processes, like approvals that require anywhere, anytime access for timely completion, through your iOS or Android mobile phone. Your remote employees don’t need to commute to the office to approve paper-based documents or wait until they’re back from a business trip. As a result, your company experiences fewer bottlenecks and delays.
Mobile application procurement features work in combination with your Internet-capable software procurement platform. Your procurement software can be seamlessly integrated to cover the intake-to-pay/procure-to-pay cycle with cloud-based accounts payable automation software.
What is the Role of Mobile Procurement in the Buying Center?
The buying center is the group responsible for purchasing decisions within an organization. Mobile procurement simplifies and streamlines the purchase process, reducing paperwork and manual processes while improving visibility into supplier pricing information.
This ensures procurement teams make informed decisions about which suppliers should be chosen during the sourcing process and how much they should pay for goods or services. When considering procurement software solutions, understand the difference between procurement vs. purchasing activities in a business.
In addition, mobile procurement systems offer real-time updates on inventory levels, allowing buyers to quickly adjust their orders according to current stock availability so as not to miss out on important deals or run short of essential supplies.
Mobile and procurement management software allows buyers and management to access invoices and other documents instantly, reducing paperwork and speeding up the purchasing and management process. It can provide electronic purchasing documents and contract management, better spend analysis with AI-driven real-time analytics, and spend management.
What are the Types of Procurement?
Manual Procurement
Manual procurement involves manually entering information into a system such as an ERP or inventory management software. This type of procurement process is often time-consuming, labor-intensive, and prone to errors that can lead to costly mistakes. It also includes the direct and indirect forms of procurement most are familiar with.
Automated Procurement
Automated procurement uses mobile devices to streamline processes like purchase orders and invoices. This approach eliminates the need for manual data entry while offering improved visibility into pricing information and inventory levels.
Automated supply chain procurement business software also creates faster turnaround times on orders placed through its streamlined approval process. Plus, it offers more functionality and better accessibility for remote personnel and users who can access the system from anywhere.
Indirect procurement, as mentioned above, can also be automated to eliminate manual tasks and save time.
What are Some Examples of Procurement?
Some of the most common examples of mobile procurement include:
- Tracking and approving purchase orders
- Generating invoices for approved purchases
- Negotiating contracts with suppliers via text messages or chatbot-based conversations
- Receiving automatic notifications when inventory levels are low or prices have changed
- Managing vendor relationships
Forward-thinking businesses are using tech in their procurement
These days, technology can do a lot more than just eliminate manual paperwork. Learn about the best methods for leveraging technology in business procurement.
Who is Involved in Procurement?
The mobile procurement process involves several people, organizations, and entities, including buyers, sellers, vendors, suppliers, stakeholders, and other organizations.
Buyer
The buyer is usually responsible for making purchases on behalf of the business. They will typically be responsible for selecting which items to buy and at what price as well as setting up payment terms with vendors or suppliers.
Sellers, Vendors, and Suppliers
On the seller’s side are vendors who provide goods or services to businesses in exchange for payment, while suppliers provide materials used in production processes. For example, in construction projects, architects, engineers, and other specialists may be involved.
Stakeholders and Organizations
Stakeholders are those with an interest in the outcome of a purchase. This includes upper management, procurement officers, supply chain management, the legal and finance departments, and other personnel who should be informed about what is going on with procurement at all times.
Stakeholders may also include external parties or organizations, such as financial institutions or government agencies.
How Can I Start Utilizing Mobile Procurement in My Business Model?
There are a few steps you can take to start utilizing mobile procurement solutions in your business model.
1. Develop a Strategy. Determine what purchases must be made, how often they will occur, and who should oversee the process.
2. Research. Look online to find a mobile procurement solution that meets your needs. Many companies offer software designed for managing end-to-end purchasing processes on a mobile device like a smartphone or tablet.
3. Communicate. Train personnel on using the chosen solution and ensure clear communication with all stakeholders regarding expectations and procedures related to its implementation throughout the organization.
4. Monitor. Keep track of system usage over time to identify opportunities for improvement or optimization.
5. Use Your Assets. Leverage new technologies such as AI to enhance the mobile procurement process and create more efficient workflows.
Using these steps, you can utilize mobile procurement processes and platforms in your business model to save time, reduce costs, and improve the purchasing process.
What are the Basics of Procurement?
To sum things up, let’s go through the basics of what you need to know about mobile device procurement:
- Mobile procurement involves using mobile devices to facilitate and streamline purchasing processes in a business setting.
- This method has become increasingly popular as businesses seek ways to improve efficiency and cost savings while maintaining quality control.
- The main advantages are its flexibility, speed, ease of use for remote personnel, approvals, and visibility of inventory levels and pricing information.
- It can also help streamline communication between departments by providing real-time updates on orders and invoices.
- There are two types of procurement, manual and automated.
- Procurement involves a buyer, sellers, vendors, suppliers, and stakeholders.
Now that you know the basics of using mobile procurement software, you can explore more about how it helps your business save money and time through e-procurement automation while improving customer service.
