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What Do You Get When You Outsource Cloud-based Purchase Order Software? by Vikram kumar





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What Do You Get When You Outsource Cloud-based Purchase Order Software? by
Article Posted: 10/24/2014
Article Views: 91
Articles Written: 11168
Word Count: 565
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What Do You Get When You Outsource Cloud-based Purchase Order Software?


 
Computers
Outsourcing has become such an integral part of the entire business structure that even small businesses are now doing it. The good thing is you can now outsource even your important enterprise functions with the help of cloud-based purchase order software, which offers the following benefits:

Labor Cost Reduction

A huge chunk of the company’s money goes to expenses that are necessary for the business to function, and a massive part of it goes to labor.

Most businesses tend to ignore the fact that labor costs are not limited to wages, which may be fixed or variable (such as hourly). These also include vacation and sick leaves, payments to their retirement accounts, and payroll taxes. Overall, if you hire an in-house person to run cloud-based purchase order software, you may end up spending $25 an hour. In a month, you could end up spending $6,000 for a person alone.

Outsourcing e-requisition software doesn’t mean you won’t pay anymore. However, you can already eliminate other related labor costs, such as sick and holiday pays. You can also avoid training-related spending since it’s expected that the person you hire is capable of using the program and, most of all, knowledgeable of the purchasing and accounting cycle.

Efficiency

In one of the studies conducted by the business management arm of Harvard, over 12% of a person’s time is used in activities that generate very small satisfaction and that which could be delegated to somebody else.

This is not to say that purchasing or supply chain management is not an important part of the business. However, managing it by your lonesome can mean a huge waste of time doing the same steps over and over again. In fact, only 6 hours of your business time is actually spent on sales, which includes retaining and attracting customers, and 5 hours for marketing. A total of 3 hours, meanwhile, goes to financial management.

By outsourcing the process using the e-requisition software, you can free yourself with additional 3 hours—or even more—and dedicate it to other important functions of your business like sales. You can even use the savings for more personal time, as running a business can put a lot of emotional and physical stress.

Competition

While low price isn’t really considered a good unique selling proposition, it still has some impact on consumers. Outsourcing helps you remain competitive in this aspect because of the significant savings you get from labor.

Moreover, e-requisition software in a cloud is considerably cheaper than an on-premise program since you don’t need to pay license fees and upgrade to access more features only when it’s absolutely necessary.

Because some of the business costs are already low, you won’t have any problem passing the savings onto your consumers. Automation

Cloud-based purchase order software lets you and your purchasing officer get more things done in a short amount of time. Most of the processes of the requisition software are already automated: you can create digital paper trails, process POs by batches, generate real-time reports, integrate the software to other accounting programs, etc.

Resource Box Automate your purchasing process today and have more time leading, marketing, and building revenues and cash flows. Invest in a customizable and secure http://bellwethercorp.com cloud-based purchase order software from Bellwether. When you invest on its e-requisition software, you also invest on the company’s over 29 years experience in requisition and purchasing management.

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