EProcurement has fast become a bridge to efficiency in today’s corporate environment
Electronic procurement, which is better known as the eProcurement, can be defined as the automation of supply and procurement chain processes, with the help of the internet based technologies and applications. eProcurement defined in such a way allows the automation of company’s internal processes while streaming the global procurement requirements and tasks. This is an excellent solution that reduces both time and costs with no need to compromise on standards or quality.
There are quite a few benefits derived from eProcurement use within a company:
- Reduction of Time Required for Transactions means that individual business transactions can be executed much more quickly. Thanks to eProcurement they’re not limited by regular office hours or even your staff intervention.
- Electronic catalogues or eCatalogues have become an extremely efficient marketing tool for both sellers and buyers thanks to the unparalleled price transparency.
- Improved Standardization is closely related to the introduction of eCatalogues, where you can easily and accurately compare all relevant offers.
- Wider Reach for Supplier Bases is a direct positive consequence of the significant impact achieved by the numerous eProcurement web portals. They are web-based and users can search and access suppliers worldwide, with no limitations. It’s worth mentioning you still have to deal with the time and cost required for shipping of goods. However, it’s a great thing to be able to source different items almost instantly from anywhere in the world.
- Simplification of Global Procurement Processes is closely associated with the introduction of eProcurement applications, which support various languages, numerous currencies, including international taxation, financing and shipping regulations.
- Improved Productivity is a direct result of eProcurement automation of processes, which were usually handled by your company’s employees. You can free more time for your staff to spend on more important financial functions and business tasks.
- Simplification of Scalability and Configurations both refer to eProcurement apps, which can be adjusted and configured to suit your business needs on an individual level. In addition, you can expect from these components to grow and closely follow your company’s newly emerged requirements and expectations.
- Trading Communities Development is derived from internet based character of eProcurement applications. They support the development of these genuine business oriented communities both vertically and horizontally. This practically means that a buyer can consolidate his buying power and at the same time embrace new opportunities for additional supply chains. This unique opportunity to answer all requirements of smaller buyers through trading communicates has allowed smaller business to reach price levels usually reserved only for bigger buyers.
- Improved Cost Efficiency inevitably follows time reductions and improved supplier selection, the introduction of trading communities, new purchasing opportunities, and services at a competitive market price. Therefore, it doesn’t come as a surprise at all that eProcurement easily proves itself to be much more time and cost efficient compared to the traditional procurement.