With the backorder challenges of the recent supply chain disruptions and the COVID pandemic, biotech companies are looking for more digital first and innovative solutions to drive efficiency in their procurement processes.One of the most common solutions is a procure-to-pay system. Here, we cover what a procure-to-pay system is and how it can help biotech companies.
What is procure-to-pay?
procure-to-pay is the integration of the purchasing systems and the accounts payable system. procure-to-pay is an end to end process that integrates everything from the product selection to compliance and documentation to receiving to reconciliation to invoicing to reporting and more. procure-to-pay can be implemented digitally through procure-to-pay software solutions.
Why is procure-to-pay important for biotech and biopharma?
How can procure-to-pay software impact biotech startups? Here are the key benefits that biotech companies can reap:
Procurement is a naturally collaborative process. Effective procurement processes engage scientists, operations, and finance teams as well. Through procure-to-pay software, teams can more easily collaborate with each other in one centralized location.
Procurement efficiency is directed tied to innovation. If scientists can’t get their supplies on time, they can’t conduct their experiments, which stalls innovation. Through leveraging a digital procure-to-pay software, procurement managers can work more efficiently to support R&D scientists and help reach and exceed company goals.
From creating supplier accounts to providing approval on order requests to sourcing quality products at the best prices to placing orders to tracking shipments to receiving supplies and more, there’s tons of room for error in all the manual processes of procurement. By automating manual processes, you reduce or even eliminate room for manual errors. procure-to-pay software is able to complete these routine tasks more quickly and accurately than any human.
Automating manual processes through procure-to-pay software not only reduces errors but also saves procurement managers valuable time. When procurement managers don’t have to worry about lower order tasks, they can focus on more strategic projects to drive greater innovation in R&D procurement.
Drive cost savings
procure-to-pay software can help procurement and finance teams identify opportunities for savings through negotiating more effectively with suppliers, identifying possible discounts, purchasing lab supplies with the best quality and price tradeoff, and eliminating the need to pay additional outsourced partners to do the aforementioned manual work.
Provide spend visibility
With procure-to-pay software, procurement and finance managers can easily see, at a glance, how the lab expenses are spread out across different teams, goals, and categories. With greater visibility, procurement and finance managers can not only better conduct their own reporting but also identify additional areas for cost savings and efficiency improvements.
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To learn more about how ZAGENO can help your biotech achieve these benefits and more, book a free consultation!