Companies never stop looking to optimize their procurement. They are either buying raw materials, office equipment or machinery, and the important thing is they need to have access to good, consistent and structured product data. Procurement is a back-office process, but it might be an enterprise’s most critical function.
But what is product data, and why is it so important? Let us take a look at how good call center services Philippines for product information can make all the difference to procurement operations’ speed, cost savings and overall efficiency.
What Is Product Data?
Product information includes all the minute details about a product. It could be its name, description, size, composition, price, supplier details, certifications, availability, etc. In an e-procurement environment, this information is stored and retrieved through catalogs or procurement portals.
In essence, product information is the foundation of buying decision-making. The higher the quality, the more accurate and up-to-date the information, the fewer errors and the more streamlined the procurement process.
How Product Data Simplifies Procurement?
Accurate product information makes procurement easier through quick product search, minimized order mistakes and automation. It promotes more supplier cooperation, accelerates approvals and stimulates cost reduction purchasing. Well organized and uncluttered data is the foundation of efficient procurement operations with smoother running and better bottom line for companies.
1. Improved Supplier and Product Search
When groups can access a product database in a standard format, they can search for what they are looking for without wasting time searching. Product information, images and technical specifications make easy comparison and quick identification of the best product possible. It saves time and allows for quicker decision-making.
2. Reduced Purchase Order Mistakes
One of the biggest problems with procurement is purchase order mistakes, wrong SKUs, old prices or purchasing the wrong quantity. Clean product data avoids such risks because all purchase requests will be created on updated and authenticated information. That means reduced returns, reduced vendor contention and overall efficiency.
3. Automated Approval Workflows
Structured product data enables automation. Rule-based flows are used in procurement systems to approve requisitions. Once a system has validated product data (e.g., price constraints and authorized suppliers), approvals can be automated and done without human intervention, speeding up the process and reducing delays.
4. Better Supplier Cooperation
Suppliers also benefit from clean product data. When your product data is in place suppliers will be more likely to ship correctly and on time. It’s also easier to onboard new suppliers as they can import their catalogs to your procurement platform without delay or confusion.
5. Data-Driven Negotiations and Cost Savings
When procurement teams know product history and price trends, they are able to negotiate a better deal with suppliers. They are better able to understand what suppliers provide the best value, where bulk purchase can be taken advantage of, and which products contribute the most to the budget. In this manner, information not only serves operations but also smarter financial decisions as well.
Product Data and E-Procurement Platforms
In most modern businesses, electronic purchasing platforms (e.g., SAP Ariba, Coupa, or Jaggaer) are being utilized to manage their buying activities. These significantly rely on robust product information to function successfully.
Inaccurate or missing product information can cause major disruptions in businesses like these, from failed transactions and delayed approvals to compliance issues. But with perfect data, such platforms can theoretically be automated end-to-end, from purchasing to invoice matching, freeing up time and cost.
Challenges In Managing Product Data
Though its significance cannot be overemphasized, product data management is not always easy. Some of the common issues are:
- Data Silos: The product data is likely to be shared among various departments or systems, causing inconsistencies.
- Non-Standardization: Various suppliers may have different formats or terminologies.
- Manual Entry Errors: There might be errors introduced through manual entry in the absence of automation.
- Outdated Information: Prices, inventory, and product specifications would frequently change.
To counterbalance these issues, companies spend money on Product Information Management systems. PIM systems aggregate product information and standardize it in a manner that makes it easily maintainable and shared across procurement tools.
Closing Thoughts
Product data seems to be a piece of the puzzle, but it is the adhesive that holds it together. Eliminating errors, enabling automation and cost reductions, providing quality and dependable product information, and an efficient call center can make a difference in how organizations purchase.
Businesses that prioritise product data management can benefit sooner, more effectively, and be better positioned to make better procurement decisions as digital transformation picks up speed.
