How Your Business Can Benefit From E-Procurement
E-procurement involves the computerization of procurement and supply chain with the support of online-based systems and technology. This automation streamlines strategic sourcing, eliminating time wastage and reducing costs without compromising on policy, standards, and quality. By adopting e-procurement, your company can enjoy multiple benefits, including:
There are several ways in which e-procurement reduces transaction time. With this system, individual transactions are completed more quickly. Office hours are not an impediment to ordering, and human involvement may not even be required in certain scenarios, enhancing the ability to complete transactions in real-time. On the whole, subsequent processes won’t be restricted by delayed completion of transactions.
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By nature, virtual e-procurement platforms are internet-based, and as such, procurement personnel can look for international suppliers. This offers an unlimited selection of goods and services that organizations may procure, and in case a required item is not available domestically, it still may be sourced from global markets. While it is important to take into account time and cost factors when choosing to procure from overseas, it is always good for organizations to conveniently look at multiple supplier options before making the final choice.
With e-procurement, it’s easy to automate a range of procurement and wider business process that personnel usually handle manually. This makes it possible for staff to use more of their productive time on key functions with more strategic importance. For instance, digitizing the matching makes it faster to order, process, and pay for goods.
The creation of e-catalogs has helped redefine procurement for both suppliers and their customers. To begin with, an e-catalog enables a buyer to browse through the scope of products and services offered by a specific supplier. You’ll also experience transparency in pricing as users can determine the exact price of any product. Equally important, you can look at several e catalogs and compare prices for the same products by different online vendors.
Savings as a Result of Repeat Buying from a Preferred Vendor
The ease with which you can source products from the same preferred supplier is a key benefit of electronic procurement. Ordinarily, purchasing from the same supplier that you’ve determined to suit the procurement policy of your organization can yield cost savings because, typically, quantity discounts are offered. Repeat buying from the same supplier as facilitated by electronic procurement is also advantageous in that your company gets its supplies from a dependable partner. In the long run, the savings at a unit cost level can be substantial, giving your organization a competitive edge.
Utilizing e-procurement software will offer plenty of benefits when you want to enhance productivity, widen your supplier base, and reduce costs.