eProcurement is becoming more important as its advantages are becoming evident. Contrary to popular belief, eProcurement can streamline your business activities in more than one way. Companies have accepted the fact that modern business solutions rely heavily on cloud and ERP solutions. They help in increasing productivity while providing transparency in everyday activities and transactions. This makes it easier for businesses to get the necessary supplies whenever they need. However, there are challenges that businesses face with eProcurement, especially with implementation and integration with other ERP solutions. But with time, procurement departments have come to accept these cloud based procurement solutions. If you are still wondering how your business can benefit from procurement software solutions, take a look at these five advantages of eProcurement!
eProcurement allows you to save considerable costs by leveraging on volume. They implement a structure in supplier relationships and by incorporating system improvement; they reduce the external expenditure to improve supplier performance and quality. eProcurement also saves you from paperwork and associated inefficiencies.Transparency on Expenditure
eProcurement implements automation and centralization throughout the supply chain and purchasing systems. The centralization of data allows us to track day to day transactions with relative ease. This allows comprehensive reporting on:
Purchase orders and processes
eProcurement provides flexibility, which can be extended to ensure compliance with established contracts.Productivity
This shouldn’t even be explained, because eProcurement solutions were basically created to increase productivity. The online ordering and requisition systems allow internal customers to access any items from an approved catalog. This allows the procurement staff to focus on other core activities like improving the supplier relationship and strategic outsourcing, as purchase order processes and low value/volume transactions are taken care of efficiently.Control and Scalability
Standardized processes and workflows allow the authorization of each transaction to be applied and directed to existing contracts. With updates in the solutions, compliance to industry and federal policies are improved and updated, allowing the end user to locate products from suppliers. As your business grows, so will the procurement solutions, allowing you greater scalability along the way.Incorporating Technology
When the processes and systems to manage eProcurement are implemented and effective, that’s when we can realize the true potential of the solutions. Procurement tools are necessary to create standard documentation like:
Electronic Requests of Information (e-RFI)
Requests for Proposal (e-RFP)
Requests for Quotation (e-RFQ)
These tools are effective in sourcing goods and services and allow a framework that provides the most viable prices. For a business to capitalize on the benefits of eProcurement solutions, it has to fully integrate it. The investment will provide long term cost reductions and enables your business to develop a supplier relationship, something that did not exist back in the pre-eProcurement days. It provides an infrastructure for spend management and supplier database, which would otherwise be very expensive, not to mention time consuming, to implement. With spending control, process efficiency, and compliance, eProcurement can help your business take the first towards productive automation.
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