Over the past few years, the procurement industry has experienced a significant transformation due to the widespread adoption of e-commerce and the advancement of the internet. As a result, nearly 68%(1) of B2B buyers now purchase goods online.
More specifically, the procurement preference of B2B buyers has shifted towards dedicated solutions rather than relying on the procurement modules of traditional ERP systems. This shift is happening due to the unique advantages offered by dedicated e-procurement solutions, such as enhanced transparency, increased efficiency, and improved supplier relationships.
This blog will delve deeper into the benefits of using e-procurement solutions.
Competitive Advantages of e-Procurement Solutions
E-Procurement solutions have become increasingly popular among businesses due to their significant competitive advantages over traditional ERP systems. While an ERP system integrates business processes and is generally built for finance departments, it lacks the specialized features required for effective procurement management.
In contrast, an e-procurement solution is designed specifically to manage procurement functions.
So what are the competitive advantages of e-Procurement solutions?
1. Procure Smarter, Not Harder: Leverage Automation with e-Procurement Solutions
Procurement operations can be made more efficient and cost-effective with automation. Unlike ERP systems, which often involve manual processes, e-procurement solutions offer fully integrated and automated processes.
By utilizing the benefits of automation, you can accelerate the procurement process, minimize errors, and streamline the entire digital procurement value chain.
2. Unlock Flexibility with e-Procurement Solutions
Traditional ERP tools can handle basic procurement, but for a broader range of procurement strategies, e-procurement solutions offer more adaptability. These solutions make managing complex proposals that involve multiple geographies, stakeholders, and suppliers easier.
With an e-procurement solution, you can customize and tailor the tool to suit your specific procurement needs.
3. Maximize Cost Savings with Analytics
A recent study by Deloitte found that e-procurement can result in a 60% reduction in operational costs.
4. One Stop Shop for Business Insights: Benefits of Data Consolidation
With the help of a procurement analytics tool in-built into an e-procurement solution, you can transform your organization’s spending practices by obtaining real-time tracking of costs. Better cost monitoring can help allocate resources toward more strategic initiatives.
An e-procurement solution can streamline your business by consolidating key areas such as purchases, sales, inventory, and finance. With all your business data in one place, you can quickly gain valuable insights and make informed decisions without sifting through multiple reports.
Unlike ERP tools, which lack comprehensive data presentation, e-procurement solutions offer a holistic view of your business operations.
5. Stronger Supplier Relationships
An effective e-procurement system can lower transaction costs, decrease supply chain risks, and enhance supplier collaboration and transparency. With better supplier management, your organization can build stronger strategic partnerships while reducing overall risk.
Embrace the Future of Procurement with e-Procurement Solutions
As a result of these advantages, a survey conducted by McKinsey(3) found that CPOs believed that digital procurement could lead to a 40% increase in annual savings, 30-50% less time spent on sourcing, and a 50% reduction in value leakage.
Businesses can unlock numerous benefits by selecting dedicated procurement solutions that enable them to optimize procurement processes, make informed decisions, and build stronger strategic partnerships.
An ideal sourcing solution can help achieve better visibility over the supply chain, reduce procurement costs, and drive business growth. Learn more about Moglix to understand how our sourcing solutions can lead you into the future of B2B commerce and supply chain management.
Additional resources:
1. E-Procurement: Its Future in the Digital World
2. https://www2.deloitte.com/hu/en/events/esemenyek/2021/a-beszerzes-jovoje-2022.html
