A couple of years back, only a handful of businesses made use of eProcurement . However, in the recent years, the benefits of eProcurement are becoming more evident as businesses are now leveraging this procurement technique. Just like the name sounds, eProcurement benefits organizations greatly and gives both small and big businesses an opportunity to procure goods and services through the internet. It is the automation of supply chain processes with the use of technology.
EProcurement has made it easier than ever to manage and monitor the performance of all contracts, tenders, and documents in one central location. Nowadays, most businesses are leveraging eProcurement because they want to reduce cost, increase productivity, manage spending responsibly, and provide visibility into day-to-day transactions.
The use of eProcurement can help your business grow beyond your present level. Some advantages of this process include:
- Reduced Costs
By having structured supplier relationships, leveraging volume, and using systems improvements, a business can be able to reduce cost and improve the quality/efficiency of their supply system. The use of eProcurement helps businesses to eliminate errors, paperwork, and rework.
- Better Cost Management
EProcurement makes use of centralized tracking of transactions which provides full reporting on items purchased, requisitions, orders processed, and payments made. Your organization can manage your balance sheet better by leveraging eProcurement .
- Increased Productivity
EProcurement frees the procurement staff from processing orders and handling low-value transactions. The time saved can be used to focus on strategic sourcing and improving relationships with the suppliers.
- Reduced Transaction Time
EProcurement allows individual business transactions to be completed much more quickly. Since the use of technology is not restricted by office hours and human errors, the capacity to complete transactions on a real-time basis increases with eProcurement .
- Creation of Trading Communities
The internet-based nature of eProcurement applications allows for both vertical and horizontal trading communities to be developed. The implication of this is that buyers can join their purchasing powers and enjoy more opportunities and benefits in their supply chains.
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