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5 Biggest Procurement Issues and Its One Solution

As a procurement professional, the last thing you want to deal with is major procurement issues when it comes to purchasing. A lot of different aspects are involved in procurement and you don’t want to waste time having to deal with challenges. This can put your company at risk of losing out on great deals and may even cause you to become frustrated.

The good news is that there are solutions, such as cloud-based E-Procurement Software,  that you can implement in order to avoid or minimize the biggest challenges in procurement. In this article, you will find five of the biggest challenges that you may face along with some tips and techniques that you can use. However, before we proceed, let’s define procurement itself and how can issues may arise in the process.


How Procurement Issues Can Arise

Procurement is the process of purchasing or acquiring products and/or services from third-party vendors or suppliers. Due to a lack of internal resources and competences, the procurement manager of a firm will examine the necessity for purchasing products and services. In other words, there is a procedure for identifying and performing particular actions as a stage of the procurement process in order to generate purchases that meet the needs and objectives of the firm.

The primary purpose of procurement is to accomplish maximum targets and profits through the improvement of company operations. A quality procurement procedure has a direct effect on the extent of a company’s cost savings. Furthermore, a procurement procedure with identification and systematic processes can lead to the achievement of more focused business objectives.

Procurement issues can arise when a company does not have the correct information to make an informed decision on whether or not they should purchase a certain product. This is especially true when a company is new to the market, or if they are new to procurement. For example, if a company has never before purchased a product from a particular supplier. They don’t know how much it costs or what kind of quality to expect; then they may end up paying too much for the product or getting something that doesn’t meet their needs.

Also read: 5 Best Procurement System in Singapore 

Biggest Occurring Procurement Issues

solution for procurement issues

There are several steps and parties involved in the procurement process. Even if the company has prepared the best possible plan to ensure everything works well, difficulties can develop at any time. From procurement strategy to payment, a wide range of small to significant complications might arise.

1. Difficulty in finding the most suitable vendor or provider

One of the most common procurement issues is a difficulty with vendors. Finding the ideal vendor is a complex task since the organization has various criteria that must be satisfied in terms of pricing, quality, and service. Before signing contracts, businesses must have a thorough understanding of their vendors. This is necessary to ensure that the organization is not dissatisfied with the services given. Select vendors in a credibility, transparency, and objective manner.

2. Inaccurate and unintegrated data

Procurement satisfies more than just the demand for routine items. It is possible that certain divisions inside the company will require an item unexpectedly. Therefore, divisions must communicate well with one another. Unintegrated and improperly planned procurement of products may result in a variety of losses, including commodities that do not meet the request of the relevant division and vendor complaints.

In addition, the data’s precision must be taken into account. Without precise information, there will be several disadvantages. One of them is the expanding budget. Therefore, conduct thorough research on the required products and the time frame.

Also read: Smart Data or Intuition? Which One to Choose? 

3. Complexity of the procurement processes

In procurement, there are three main documents that you will use to manage your purchase order process: the purchase requisition, the purchase order, and a receipt. These documents all have their own unique challenges that make them difficult to manage and/or automate. For example, a purchase requisition can be used as a tool for ensuring that each department has what they need in terms of supplies or equipment. However, this document requires extensive information about each product or service being ordered which adds time to the ordering process.

download skema harga software erp
download skema harga software erp

4. Lack of time management

Procurement is known to be a very time-consuming process. With so many aspects to manage and activities to keep track of, it’s easy for procurers to get lost or lose focus on the bigger picture. This means that keeping track of all the details, staying on schedule and budget, and ensuring that everyone involved has what they need when they need it can be challenging. Time management is key in order for you to successfully complete all your work in an efficient manner.

Also read: Best Timesheet Software for Business’ Time Management

5. Fraud often occurs in procurement

Fraud is a big problem in procurement, both inside and outside the organization. Bid rigging, kickbacks, and fraud in the supply chain are just some of its many forms. Detecting it can be difficult; prosecuting it is even harder.

Bid rigging is one of the most common types of fraud in procurement. Bid rigging occurs when two or more parties collude before an auction takes place to determine which company will win a bid. Kickbacks are another form of fraud that often occurs as a result of bidding processes; in this case, one party gives money or other compensation to another party in exchange for winning a bid. The third type of fraud that commonly affects procurement is fraud within supply chains: here’s where you’re buying something from somebody else who may be selling you bad goods or shorting on their duties (like providing warranty services).

Benefits of ERP Software to Minimize Procurement Issues

solution for procurement issues

If you want to overcome challenges in your procurement process, integrated E-Procurement Software is a good place to start. The software can help you automate and improve your procurement process by providing tools that can help streamline and simplify the process.

  • Automating the purchasing process means less time wasted on manual tasks. With an online E-Procurement Software, you will be able to eliminate paper based processes, which is great if you don’t have a big team of employees or don’t want to spend too much money on hiring employees and paying them for their time.
  • More accurate tracking of spending habits as well as better control over budgeting and expenses. With a featured-rich E-Procurement System, it becomes easier for managers within an organization to keep track of what each department spends on various purchases. This helps prevent any unnecessary costs from creeping up unexpectedly later down the road.
  • Maximizing collaboration between divisions. With the best E-Procurement Software that will give you great visibility, everyone is on the same page when it comes to making sure that every purchase decision is around.

For more information about the benefits of the software, you may read the article below.


The future of procurement is bright, with major trends showing that businesses can achieve greater efficiency by integrating their processes. As we saw in this article, however, there are still some big procurement issues ahead. The task ahead seems daunting, but it doesn’t have to be. With the right technology and approach, you can overcome these challenges so that your organization can take advantage of the many benefits procurement has to offer.

HashMicro’s robust E-Procurement Software can help businesses solve these challenges. Our solution can help automate the procurement process while managing spend and reduce costs. Moreover, it enables businesses to access a comprehensive view of their entire procurement processes; which helps them improve their data and analytics. Fill out the available form now and take procurement processes in your business to the highest level of efficiency.


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