Top 5 Advantages of e-Procurement
E-procurement, in its multifaceted benefits, can help in the simplification of purchasing, saving money and improving the entire supply line. Hence, one of the most current topics of debate in the procurement sector, is the harnessing of e-commerce, to increase the efficiency and profitability of an organization, wherein, e-Procurement, expands the concept of ERP (Enterprise Resource Planning) Systems with automating internal business operations to help in streamlining global procurement processes, without compromising on quality.
Moglix is taking a look at the top 5 important advantages of switching to e-Procurement, over traditional systems:
The electronic conduction of procurement ensures an ease of documentation and communication, which in turn helps in the compliance between contract and the actual procedure conforming to an organization’s policies.
- Productivity and Cost Reduction:
e-Procurement enhances productivity as electronic records help in the submission of reusable tenders or even filling up paperwork more quickly. It also helps in cost reduction by the prevention of duplicate spending, eliminating paper-based systems and even leveraging volume buying. As per a research conducted by Forbes, 70% companies have reported savings ranging from 5% to 20% post switching to e-Procurement.
The configuration of e-procurement applications to suit individual buyer and supplier needs ensures that technical infrastructure development can grow with the organization if need be so by selecting suppliers that cater to both the present, as well as a possible future need.
- Improved Supplier Relationships:
e-Procurement helps in expanding the marketplace for buyers, hence, increasing contract opportunities for suppliers. Automation and streamlining of tenders, enhanced speed of supplier registration, improved cash-flow due to shorter procurement cycles and payment automation all lead to transparency and accountability which help in improving supplier relationships.
- Standardization and Wider Supplier Base:
By having a centralized supplier database, issues like compliance, audits, performance tracking, sourcing etc. become easier to handle, thus, standardizing procedures for the access to and effective management of a wider supplier base.
What makes e-Procurement truly unique is the value it adds to an organization, guaranteeing you an improvement in bottom line numbers. Tell us more about what you think about e-Procurement and its benefits, in the comments section below.