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The Benefits of E-procurement to Organizations

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Any organization that's not using an e-procurement platform to source its supplies may be missing out a lot on productivity, efficiency, spend analysis, and cost savings. A lot of procurement processes and functions are automated with e-procurement, and that yields plenty of benefits to organizations, including:

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Cost Reduction

You can reduce costs in so many ways by embracing e-procurement. Some of the costs you can reduce this way include off contract spend, cost for spend brought to contract, and requisition to order cycles.  

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Transparency

E-procurement systems introduce transparency and automation in any ordering or purchasing system. Vendor information and purchase data are centralized and the system is integrated with ERP. As a result, the purchasing portal becomes more uniform while enhancing visibility of organization leadership.

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This system makes it easy to validate and monitor the following:

1.    The process of short-listing vendors

2.    Assessment methodologies

3.    Original quotes

4.    Negotiation and progress

5.    Requisition as well as approval procedures

6.    Payments and taxes

7.    Adherence to contractual obligations

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Productivity

Research has shown that use of e-procurement software such as by a chief procurement officer can lead to a decline in the procurement cycle time by more than half. This is possible by putting all purchasing functions under the control of the procurement personnel by introducing more categories and creating catalogs as well as rate contract. In the end, maverick purchasing will decline, and a structured approach to handling of procurement will gain momentum. 

Thanks to increased transparency, supplier-buyer relationships will improve. There will be enhanced agility and longer-term visibility. Your procurement team may then pay more attention to strategic categories while adding values where it counts the most.

 

Control

With e-procurement and procure to pay software, it's easier to regulate procurement/approval workflow for every transaction. Since the vendor database is centralized, it is easier to handle compliance, audits, and legal matters. Your contractual obligations with vendors are also centralized so you may conveniently monitor supplier performance. 

 

Web-Based Sourcing

E-procurement makes it possible to obtain your supplies from a supplier you're able to compare with the rest online. You can look at the pricing of the item you're looking for and determine if you want to engage any specific vendor. Plus, if the item you want to purchase is not available locally, you may opt to shop in international supplier markets.

Certainly, e-procurement offers plenty of benefits to businesses. With the automation of procurement processes, your personnel are able to focus their energy on more functions of strategic importance.  The platform will help save time and costs too.

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Please visit  https://www.youtube.com/watch?v=pkOWIr3au3Q to learn more related information.