The Procurement Glossary » Procurement Automation
Procurement Automation
Technology & Systems
Definition
The use of software to perform procurement tasks with little or no manual intervention.
Explanation
Automation targets repetitive, rules-based work — routing approvals, matching invoices, sending reminders, creating orders from requisitions. It cuts cycle time and error rates and frees buyers for higher-value sourcing and supplier work.
Example
Procurement automation routes each requisition to the right approver and creates the purchase order the moment it is approved.
Related terms
- Workflow Automation — The automated routing of tasks, approvals and notifications according to predefined business rules.
- Robotic Process Automation (RPA) — Software 'bots' that mimic human actions to automate repetitive, rules-based digital tasks across systems.
- Touchless Invoice Processing — The fully automated handling of an invoice from receipt to payment with no manual intervention.
- Straight-Through Processing — The end-to-end automated completion of a transaction without manual re-entry or intervention.
Related concepts
- Procure-to-Pay (P2P) — The end-to-end operational buying cycle — from requisition and approval to purchase order, receipt, invoice matching and payment.
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Frequently Asked Questions
What is Procurement Automation?
The use of software to perform procurement tasks with little or no manual intervention. Automation targets repetitive, rules-based work — routing approvals, matching invoices, sending reminders, creating orders from requisitions. It cuts cycle time and error rates and frees buyers for higher-value sourcing and supplier work.
Can you give an example of Procurement Automation?
Procurement automation routes each requisition to the right approver and creates the purchase order the moment it is approved.
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