What are the three pillars of procurement software?
Regardless of how you define procure to pay tool, there are three core components that help set it apart as a category. These three pillars are the features and functionality users expect to see in an enterprise procurement platform.
Supplier Management - This is the foundation of the platform, and the piece that sets procurement software apart from spend management tools. Supplier management is the process of identifying and vetting suppliers who provide goods and services to the company, and managing those relationships on an ongoing basis. The system should track key details about each supplier, such as contact information and performance metrics.
Contract Management - The contract lifecycle is complex, with many different stakeholders involved in every step of the process. Each organization will have its own policies for different types of contracts (e.g., professional services vs. maintenance agreements), but in general, contract management entails creating new agreements and storing them in a central repository; managing ongoing negotiations; monitoring compliance; and archiving completed contracts for future reference.
Spend Management - A good procurement software provider will integrate with your ERP or accounting platform to give you visibility into all company purchases and expenses, regardless of whether they were made through the system or not. This includes tracking invoices, approvals, payments, etc.
Contact TYASuite cloud-based plug and play procurement software to know what each pillar means in the digital era and how they can benefit your business.