In this scenario, transparency is a sort after in all aspects of Business. Procurement is no exception to that. In fact, the procurement industry gets a higher preference for transparency as it is involved in many areas and departments of a corporate. Transparency is defined as a situation in which business and financial activities are done in an open way without secrets so that people can trust that they are fair and honest.
Procurement & Transparency: Usually, transparency is considered as an operation in such a way that it is easy for others to see what actions are performed. Transparency in procurement implies openness, communication, and accountability.
By this, it is fair to say that procurement should be based on rules guaranteeing fair and non-discriminatory conditions of competition. Generally, a transparent procurement system ensures that all the team members, as well as the qualified suppliers, have equal access to all system elements, including procurement methods, legislation, supplier rights, etc.
Benefits of Transparency in Procurement:
Maintaining transparency in purchasing practices is very important in big corporates. Nowadays, it is key to implementing cost savings potentials across all divisions and companies. Other transparency benefits include the following:
- Avoiding Duplication
By adopting a transparent procurement policy, we minimize the duplication of the purchased items. With the awareness of visibility, duplicate requests will be thoroughly watched as well as prevented.
- Record Management
Organised and well-managed Records are helpful when multiple people have any time access to them. With a well-defined system, everyone will have access to the necessary information at any time. Overall, transparency helps increase efficiency for everyone involved.
- Bulk purchasing
In a transparent procurement system, corporates have the possibility to buy in bulk quantities. Requests from different departments can be combined into a single order. In such a way, they will reduce transportation and unit costs. Upon arrival, the quantities would be distributed to the required locations on-time.
- Cost Reduction
Within the procurement function at your company, the more transparency you have into who is buying or approving what, the more you will be able to identify areas of savings and efficiencies. Transparency leads to cost reduction in all aspects of the procurement process for a corporate.
- Advanced Strategic Planning
Better transparency empowers you with the ability to add more strategic value to your company. During an audit or any interrogation for that matter, a procurement manager or any such employees can undoubtedly explain the areas of spending along with the time and the reason with an excellent transparent system.
Kobster assures Procurement Transparency
One of the best mechanisms used to promote fair procurement is to adopt suitable procurement software that will make your entire business processes more transparent and profitable. Kobster Elite is India’s first B2B e-procurement tool which is highly transparent and speaks on credibility by itself. This tool has become the top preference for procuring managers from the top corporates of the country irrespective of sectors.