The Many Benefits of E-Procurement
Updated: Oct 25, 2021
While procurement managers typically focus on cost containment to provide important savings for their company, utilizing e-procurement offers additional benefits. Even though improved cost savings is an important part of e-procurement platforms, enhanced record-keeping and streamlined purchasing processes can significantly strengthen the growth of any business. In addition, an excellent automated procurement process can help businesses in the following ways:
1. Saving Time – By automating procurement processes, e-procurement makes the process of inventory control and purchasing much more efficient. For instance, staff members will not waste precious hours with manually matching receipts with deliveries or entering redundant data into the company’s computer system. On the other hand, administrative staff can quickly scan inventory with the UPC or SKU code on the purchased items while the computer instantly records this information.
2. Increased Accuracy – With an automated procurement and inventory program, procurement managers and administrative staff will see an improvement in the accuracy of the company’s records. This includes minimized mistakes in ordering and reduced clerical errors with data entry. Once operational, the increased accuracy from e-procurement provides a better picture of the organization’s current procurement process. As a strategic tool, managers can review historical information and make better judgments on future purchasing decisions.
3. Negotiating Power – Automated procurement systems also provide vital information to help procurement staff with negotiation power. For instance, managers can analyze reports on volume purchases and spending patterns. This information can play a key role when negotiating volume discounts, price breaks or optimized payment terms with suppliers. Whether working with local or global suppliers, professionals can utilize valuable e-procurement data for improved purchasing leverage.
In summary, a high-quality e-procurement program not only delivers greater cost savings, but also improves the company’s overall performance with saving time, increasing accuracy and providing negotiating power for the procurement staff.