Are you thinking about upgrading to the Pro Version of SpendMap so that you can manage your inventory in the system?
Did you know that SpendMap offers two separate modules for Consumable Inventory Control and Fixed Asset Management?
Check out these new video tutorials to learn more…
And if you’d like to try it out for yourself, just sign up for our Free Cloud Demo.
Most new SpendMap users get pretty jazzed about the Item Master File (item catalog) in SpendMap. They love that they can put a list of approved items in front of their users. They love how most of the data entry goes away when entering new Purchase Orders (since item descriptions, pricing, account coding, etc. will default on new POs based on the selected item). And they love how they can run reports to get accurate spending history by item/part number.
But at some point the reality sets in and then comes the inevitable question, “You mean I have to set up all my items?”.
This post outlines some options for (and alternatives to) maintaining item catalogs in SpendMap…
Today Seth Godin wrote about how the desire for “simple” has led to an increase of “stupid” in our society.
But don’t read his blog post (it’s way too long). LOL.
Seth is talking about literature and the media but the same thing is happening with Purchase Order software systems.
In recent years we’ve seen the industry shift from an emphasis on building feature-rich, useful tools that actually solve problems, to a focus on “simple”, “easy”, “fast” and “cheap”.
Let’s be clear, ease-of-use and affordability are important for any business software application these days. Just not at the expense of usefulness.
So if you’ve tried some of those super-simple PO Software Systems only to find that they barely offer a handful of fields on the Purchase Order entry page (who needs Terms of Payment and Delivery Date fields anyway!), why not take a step back and think through your Purchasing process a bit, then come and take a look at SpendMap’s free Purchase Order Software System.
If there’s anything that our 25 years in this business has taught us, it’s that there needs to be a compromise between “simple” and “useful”.
PS. If Seth’s first blog post, above, is too long, here’s a simpler one.
Seth Godin is really good at stating the obvious but at the same time adding value. Read his blog post on Wasting our technology surplus.
So what are you going to do with all the time and effort that your free Purchase Order Software saves you?
Will you “play video games and hang out” or use that extra time for strategic, value-added initiatives, like choosing better suppliers and negotiating lower pricing for your company?
Either way, we’re happy to be part of the solution!
Best regards,
– The Free-Procurement Project team
The vast majority of data entry fields in SpendMap are optional and can be left blank. For example, the only mandatory fields on Item Requisitions are…
That said, you may choose to force fields (i.e. make them mandatory) using one or both of…
If a field is optional on a particular screen or transaction, keep in mind that it might also be filled in later in the process. For example, the person requesting an item may not know the supplier and so a Buyer or Purchasing Manager may select the supplier when reviewing/approving the order or when converting the Requisition into the final Purchase Order.
Account codes are another common example. Some SpendMap customers allow their end users to process Requisitions without specifying a G/L Account or other account coding, which might not be completed until the invoice is matched/approved later in the process.
Keep in mind, however, that you may need to make certain fields mandatory in order to use certain features of SpendMap. For example, if you are routing requisitions for online approval based on the G/L Account, then obviously that piece of information needs to be provided so that SpendMap can determine the appropriate approver(s).
Similarly, if you’re tracking your financial commitments against each G/L, for example, using the budget tracking features in SpendMap or maybe with the PO Account Commitments Report, then you may want to make the G/L field mandatory on transactions earlier in the process, or risk missing commitments until the invoice shows up.
Again, the question about when (or if) you want to make fields mandatory applies to other fields as well, not just G/L Accounts (but that’s certainly a common example).
Bottom line, what’s easiest for your end users is not the only thing to consider (although it’s certainly important). You also need to think about what data is needed to properly support your Purchasing and Spend Management processes.
Interesting data from Spend Matters and American Productivity & Quality Center,
If we’re crunching the numbers correctly, automating your procure-to-pay process can:
As if you needed even more motivation to implement our Free Purchase Order Software.
Brenda was struggling a bit with her implementation of the free version of SpendMap, so we helped her by providing free support when she had questions about setting up her Master Files, using the built-in integration tools, and otherwise configuring the system to her needs.
But she still had a concern…
“I’m worried that if I’m having trouble, it will be impossible for our staff as they are not very computer savvy at all“.
Fair enough, but keep in mind that implementing a business application like this is more involved than just using it for your day-to-day work. For example, entering a Purchase Order or Requisition in SpendMap is much easier than setting up the master files, going through system configuration, etc.
Our customers tell us all the time that their users can handle the “day-to-day” stuff, with no training at all!
And remember, with User Definable Menus, you can remove everything from your staff’s field of view that they don’t need, leaving only the few functions that they’ll use to do their daily tasks (e.g. Enter a PO or Requisition, check the status of their order, etc.).
But Brenda certainly has a valid point. This type of system is definitely more involved to set up than, say, a simple word processor or something, that you can just install and start using. There are configuration settings, workflow options, master files to populate, not to mention mapping the functionality to your business processes, which in and of itself can take some time.
All that said, keep in mind that there is definitely a big carrot to keep you motivated while you work get the system going.
On a separate but related note, we will soon be offering Getting Started training and implementation consulting packages for users of the free version (until now, these services were reserved for people using our paid version only). Make sure to follow our Blog, where we’ll make the announcement when the Getting Started package is available.
Don’t give up folks. Rome wasn’t build in a day.
We hear stories like this all the time. Companies get tired of the paperwork and administrative effort of Purchase Orders and so they switch to Purchasing Cards (p-cards) to make things easier.
Often the p-card programs start off well and employees follow the guidelines (e.g. only to be used for low-value purchases, etc.). But inevitably things start to “creep”, and before you know it the cards are being used to buy everything, and then you’ve lost control of spending.
But the good news is, with the free version of SpendMap, you can get the tight internal controls that can only be achieved with a proper Requisition and Purchase Order process, while significantly reducing the paperwork and administrative burden compared to your Grand Daddy’s old paper Purchase Orders.
Sometimes, when it comes to your company’s spending, there is such a thing as “too convenient”.
We’ve had a few requests from the Free-Procurement community for the ability to enter a “Request for Reimbursement” in SpendMap. This has already been added to the system and is coming in the 2014 release of SpendMap.
Also known as “expense management” and “expense reports”, this includes the ability for staff to request reimbursement for something that they purchased and paid for personally, instead of creating a Requisition or Purchase Order in the procurement system.
What role do expense reimbursements play in your Purchasing process?
Some would argue that it should be avoided and that expense reimbursement is not ideal from a Spend Management perspective, since the approval process comes after the purchase transaction (in a perfect world, all spending would be approved before the products or services are ordered). But in some cases it’s just not practical to create a Purchase Order for everything that you buy. Common examples include things like travel expenses, meals and entertainment, and so on.
In any event, while we always advocate for pre-purchase spend control whenever possible, we understand that expense reimbursements play an important role in some Purchasing environments, and we have already added Expense Reimbursement functionality to SpendMap, allowing users to submit expense reimbursement requests, which can be routed for online approval based on user-definable business rules, just like Purchase Requisitions. Once approved, SpendMap will send a “check request” to your Accounting System to process payment to the employee, update the status of the cost center’s budgets, and so on, all without the hassle, errors and delays that are inherent with paper-based expense reports.
These new features will be available in the 2014 release of the Free Version of SpendMap.
On a separate but related note, don’t forget that SpendMap also supports Non-PO Invoice approval, for things like rent and utilities, where it’s also not practical to create Purchase Orders in advance, but approval of a supplier’s invoice is still required. For details, check out this section of the Online Help…
– Invoice Approval > Types of Invoices and Workflow
Seth Godin’s words are always worth repeating, but perhaps never more so than his recent blog post about shortcuts.
How does this relate to the world of Purchase Order Software and e-procurement?
Far too many software vendors push the message “easy, easy, easy” during the sales process.
And as a result, far too many nice people become frustrated and disappointed when they get around to actually implementing their new Purchasing systems, only to find out that there’s actually a little work involved (sorry folks, this isn’t a word processor that you can just install and start using).
Seth’s closing remarks are worth repeating here: “It will take you less time and less effort to do it the (right) way than it will to buy and try and discard all the shortcuts“. Well said, Seth.
But the good news is, as you work to get your free Purchase Order Software up and running, there’s lots to look forward to.
Measure twice. Cut once.
TIP: If you’re ready to start implementing the free version of SpendMap, please see “Time to Implement” in the Getting Started Documentation that came with your free software.
The Free-Procurement Project 