Everything You Need to Know About E-Procurement
October 8, 2019
In a time when the world lives online, people have begun to utilize virtual communication in both their personal and professional lives. Communication isn’t limited to video conference calls or emails with family and friends though. In fact, communication between suppliers and customers is a topic more businesses are showing interest in. This online communication between suppliers and customers is known as e-procurement. E-procurement improves efficiency, accuracy, and overall customer satisfaction while saving both parties money along the way, but it’s a topic that still leaves many people scratching their heads.
What is E-Procurement?Before we dig deeper into the benefits of e-procurement for businesses, let’s take a look at what exactly it is. E-procurement involves taking the traditional procurement process and digitally enhancing it for both the supplier and customer. That means that all parts of the procurement process, from order placement to checking invoices, are performed digitally.
How Does E-Procurement Benefit the Customer and Supplier?One of the most notable benefits of e-procurement is the improved relationship between supplier and customer. That improved relationship can be credited to a few things, including:
- Easier communication from supplier to customer
- Online data sharing to improve accuracy of order information
- Cost saving for both the supplier and customer
- Online options for quotation requests, order changes, and online bidding
- Clear view of the procurement process for the customer allows them to see where their money is going
Utilizing E-ProcurementIf the benefits found in e-procurement sound like something that would work well for your company, the next step is choosing an e-procurement software. There are many different options on the market when choosing an e-procurement software. Some are packed with features that would be best utilized by a large corporation, while others are simpler and a better fit for small to medium-sized businesses. Before trying to choose which software is right for your company, speak with your team to agree on these key points:
- Determine what your business needs realistically are
- Define what your key procurement and business processes include
- Create a list of what security features are the most important to your company