With the emergence of new collaborative business practices, companies have started focusing on building expertise in every specific area of their processes. In such cases, productivity and agility of companies’ suppliers directly affect their business performance. Without a proper e procurement process in place, most suppliers fail to provide a standardized offer and, therefore, leave buyers with no scope for comparison. This not only decreases the visibility into day-to-day transactions but also makes it difficult for users to get the supplies that they need. Therefore, companies need to have an effective online procurement system to keep up with quality and standards both.
What is e procurement?
Electronic procurement, also known as e procurement, is the automation of procurement and supply chain processes through the internet or any other information and networking systems. An e-procurement system provides a platform for companies that support automation at a global level by automating internal business processes through electronic data interchange or enterprise resource planning. It also helps businesses to streamline their global procurement system and reduce costs by communicating vital information in an easy and effective manner.
At SpendEdge, we understand the importance of leveraging e procurement solutions for businesses. And to help organizations become market leaders, we have listed the core benefits that e procurement solutions can provide your organizations.
Importance of e procurement solutions
The lack of an effective e procurement process has always been one of the major reasons behind the inefficiency of procurement operations. This not only results in unwarranted expenditures for companies but has also affected supply chain transparency. E procurement solutions are a great way for companies to simplify their workflows and enhance their market reach. Also, e procurement solutions allow businesses to tackle issues such as non-compliance and cartel formation. Listed below are some of the key benefits of e procurement solutions:
Benefits of e procurement solutions
Benefit #1: Reduces costs
Since the use of the internet to purchase goods and services has become quite common, e procurement solutions have reached a point where online procurement is considered to be a viable option for reducing costs. E procurement solutions allow users buyers and suppliers to connect via digital mediums and provide them with an e procurement system. The system is effective in every stage of the buying process and empowers businesses to purchase orders from preferred suppliers, manage catalogs from multiple vendors, and contract prices in no time.
Having an effective e procurement system can help businesses to reduce costs and mitigate challenges arising in the procurement process. Request a free proposal and know e procurement solutions can enhance your procurement plans considerably.
Benefit #2: Improves compliance with suppliers
Businesses require a shift in procurement viewpoint and a thorough understanding of the supply base objectives to become more supplier-focused. In such a scenario, e procurement solutions are highly useful in aligning suppliers’ decisions with the organization’s strategic needs. Increased transparency in the procurement system provides procurement with needed visibility and improves compliance with suppliers.
Benefit #3: Escalates productivity
E procurement solutions also help business to streamline the purchasing and tendering processes within the pre-set guidelines. The use of a procurement system further allows the company to store the business data in an electronic format and simplify the process of purchasing. This help companies to keep a track of the total purchases within the business organization, improve the manufacturing cycles, and enhance their supply chain strategy.
Benefit #4: Mobilizes procurement process
Adopting e procurement solutions is a convenient and easy option for businesses, especially if they want to take an agile approach towards critical agreements. For instance, if there are any critical agreement and big deals happening online, and you are stuck in a board meeting, it becomes easier to respond to “action-needed” alerts while being away from the office.
Benefit #5: Provides spend visibility
Gaining better spend visibility should be the most important criteria for businesses. It enables companies to analyze where the revenues from the company are getting utilized. E procurement solutions help businesses to track business transactions and provide a detailed overview report on requisition, items purchased, supply chain strategy and processes, purchase orders, inventories, receipts, and invoice management etc. Such reports enhance the visibility into the day-to-day business transaction process.
Improving spend visibility requires companies to access and analyze huge volumes of data. Request a free demo and know how our e procurement solutions can enhance the spend visibility of your business.