E-procurement is another name for electronic procurement. Remember how organizations took their own sweet time to adopt technology within their setups, but eventually it did happen and made life easier for everyone. Similarly, in conventional procurement practices, a simple thing such as seeking approval or writing proposal would take several meetings either with the top management or the suppliers to finally yield positive results. But luckily, the industry has found a way in e-procurement to overcome the three roadblocks in the traditional procurement practices. It is about time the industry welcomed the new way of sourcing and purchasing materials, goods and products.
E-procurement is an umbrella term that encompasses all the aspects of electronically assisted buying. Thanks to the internet, the purchase function has undergone drastic changes across the globe thereby offering procurement a seat at the top management table and a say in strategic business decisions. In simple terms, e-procurement is a system that enables employees, chief procurement officers (CPOs), suppliers and end-users to facilitate a purchase remotely, on the go. Electronic procurement has reduced the time required for the entire procurement process by streamlining activities right from the decision making stage to the invoice and delivery/receipt of the goods.
Why shifting to E-Procurement is a good idea?
E-Procurement has several benefits that will help make a positive impact on the organization’s bottom line. It benefits all the three levels within an organization by improving spend visibility and enabling control over its finance. It not only accelerates the process by eliminating redundant and superfluous steps but also enables real-time interaction with all the stakeholders including the suppliers on one platform and induces cost efficiency in the organization. Additionally, electronic procurement facilitates employees to make purchases efficiently by placing orders with top rated and preferred suppliers. This provides them access to information, streamlines processes and induces automation across the supply chain.
Why is E-Procurement still a distant dream for several businesses?
Organizations are not flexible enough to adopt changes, especially technological ones. The most important factor for the success of an e-procurement system are the organizations employees. On several occasions, it is the employees or the staff that perceive it as complex, unwieldly and slow to respond with an additional fear that automation will render them jobless. But on the contrary, embracing e-procurement systems will only shift their role from a person who spends money to someone who contributes in generating income.
Thus, we can say that shifting to e-procurement will enable the organization to streamline its processes, drive cost saving opportunities thereby make a positive impact on the organizations bottom line.