Workflow deviations and lack of automation in a procurement process may lead to a tremendous loss of time and resources. An inaccuracy in data elements is not necessarily detected immediately as it occurs. It might be detected much later after many other activities have been conducted. Therefore we can face a situation where data inaccuracy at the early step does not stop the process but harms it badly since later actions were based on wrong data.
If no workflow enforces conduction of the process in a particular timeframe, purchase orders or requests can be stuck in a stage due to various reasons (i.e. wrong data, manager not willing to sign, etc…) or can travel from one manager to another in a loop. There may be various consequences of such a delay. For example, materials or services may not arrive on time and this can harm the production process and lead to a significant financial loss. Inaccurate data elements can also harm the supplier’s ability to deliver purchased items or services on-time and stay in concordance with the proposed lead time. Another consequence of the possible inaccuracy can be wrong data in reports and wrong decisions concerning the supplier’s performance based on these reports. The accounting issues can also be a result of wrong data elements. Moreover, inaccurate data elements in procurement and supply chain processes may lead to wrong reception on stores. These steps can consequently lead to a revaluation of inventory value and distortion of the company’s balance sheet.
On the other hand, rigid and non-flexible workflows may also harm business processes especially when we handle complicated business processes. And as it was said many times already, dealing with COVID challenges requires even more creativeness than usually…
We should study our daily processes meticulously and try to keep them simple and rigid on one hand, but on other hand enhance them with simple yet effective tools such as audit trail and free-text comments. Even such simple enhancements may strengthen an old-fashion ERP system with some fancy Slack features.