The latest insights in e-procurement
Online Success of e-Procurement
The first e-Procurement solutions arrived in the 1990s, which enabled key business enterprises to replace time consuming, error prone, manual paper requisitioning. By utilising the online environment to implement much needed reform, strategic and dynamic internal purchasing processes could be developed to create a sector-specific, customised electronic supply chain.
The harnessing of instant, online processing and linked up transference capability means the functions of operating the complex transactional aspects of requisition, authorisation, ordering, receipting and payment processes are correctly harmonised, tracked and immediately available, and referenced on demand.
Essentially, e-procurement can be implemented and fine-tuned to control both key and related detailing from order to sale, invoice to payment, deployed across an entire enterprise infrastructure.
Subsequently, deployment of an e-procurement system has proven to be a vital and indispensable management tool enabling 360 degree service interoperability to drive competitive cost efficiency. According to the Aberdeen Group, business research analysts, migrating the entire process online can yield tangible e-procurement benefits of an estimated 60 percent reduction per order transaction.
Correctly specified e-procurement software is crucial to providing an incisive, organisational instrument which specifically interacts with key suppliers. Built-in monitoring tools will control costs and ensure maximum supplier performance by steaming realtime data and maintaining an open line of communication with potential suppliers throughout an entire process.
A properly implemented system can connect companies and their business processes directly with suppliers while managing all interactions between them. This includes management of correspondence, bids, questions and answers, previous pricing, and multiple emails sent to multiple participants, critical to previous agreement leveraging and competitive quotations.
Promoting competitive bidding, and by automating procurement orders ensures that orders are placed in time to align with the recommended production schedules of ERP applications and crucially, drives down materials expenditure.
Undoubtedly, the successful growth seen by b2b ecommerce sites has accelerated the requirement for sourcing eprocurement solutions – also known as Supplier Relationship Management. Ever increasing quantities of data can be easily handled to ultimately, streamline complex workflows between multiple resources and destinations, by keeping relevant information precisely organised and time-stamped.
A template-driven process enables all transactions to be standardised and trackable to leverage knowledge and obtain better pricing, thus allowing enterprises to focus on key trading partners and contracts. Administering a well-managed e-procurement process helps reduce inventory levels. In addition, visibility of product numbers, bid prices and contact points speeds up business transactions and retains competitive edge by constant access to relevant data.
Organisation of administrative users by roles, groups, or tasks are standardised and easy to learn, liberating critical management time and resources towards developing enhanced customer service needs and consequently, protecting optimal revenues.