Around 50% of Indian companies face challenges in procurement due to outdated technologies and confusing data. However, the other half are leveraging e-procurement to gain a winning advantage over their competitors. E-procurement, or e-sourcing, is all about sourcing products online for businesses of all verticals to save money and improve supply chain efficiency. Let’s understand how e-procurement helps businesses thrive over competitors.
Top Advantages of Leveraging e-procurement in Business
Here are a few top advantages of leveraging e-procurement in a business:
Better Supply Chain Management
The COVID-19 pandemic has caused supply chain disruptions for 75% of Indian companies due to headcount reductions over increased financial liabilities. With an e procurement process, companies easily handle paperwork related to purchases and transactions electronically from a central system to streamline their supply chain without any hassle.
Cost Reduction
A study shows around 38% of mid-sized and 40% of large-sized companies focus on cost reduction during procurement. An ideal e procurement process can help you cut down the cost of purchase order requisition by up to 75%. You do not need to place orders by telephone or mail or have to follow up on those orders manually. It can be done in a matter of seconds. All these benefits translate into cost and resource savings in the long run.
No Human Error
78% of manufacturers believe procurement automation is imperative as legacy procurement systems are prone to human errors. Errors may surface as incorrect data capture or failure to save changes. However, modern e procurement systems use automation to automate data entry and mitigate the risk of manual handling of purchase orders to keep things flowing without any blunder.
Budget Management
Reports say 39% of companies find it hard to control their indirect spending during procurement. Also, with a legacy e-procurement system, there’s a small scope to seek approvals for over-budget purchases, as all the budget calculations are done by hand or in spreadsheets. Modern e procurement systems automate budgeting and alert authorised users to available funds and spending impacts before costs are incurred. adding extra flexibility for budgeting needs.
End Thoughts
The Indian Government is actively digitising the procurement process through this link with digital solutions and automation. However, only 5% of Indian organisations have automated their procurement functions, indicating significant potential for further automation. Take advantage of a modern e-procurement system with Moglix Business. Check this case study to know how Moglix has helped one of the world’s largest diversified natural resources companies to save 10-15% cost through its e-procurement solutions. Visit our website to learn more.
