Electronic procurement is automation of procurement and supply chain processes using internet based applications and technology. The thought of shifting to en electronic procurement process is an issue that scares a lot of business people in the current market. Some of the preformed opinions that business people have concerning electronic procurement process are; it’s a very complicated process and does not guarantee privacy. The time that a company’s staff might take to learn the electronic procurement process is another challenge. Despite these challenges, electronic procurement is becoming popular in recent times due to the several advantages that it comes with. Below are some important benefits associated with electronic procurement. Learn more about digital procurement services in this page.
One major advantage of electronic procurement is reduced costs. Electronic procurement saves you money by preventing duplicate spending, saving costs associated with paper work and leveraging volume buying. When using paper work, you need to buy stamps to mail your paper work to respective locations, with electronic procurement, this cost is eliminated. Using electronic procurement enables you to have transparent spending. Centralized tracking of your firm’s transactions enables full reporting on item purchased, payments made or order processes. Electronic procurements allow you to comply with existing and established contracts.
Once your firm’s working team has learned and understood the process of electronic procurement, it becomes less time consuming compared to paper work. Productivity can be increased by allowing procurement staff to concentrate on strategic sourcing and improving customer relationships. Internal customers can also obtain the items they want from a catalogue of approved items available through an online system. Electronic procurement saves you the stress of looking for more space to store your paper work because it completes eliminates it, everything can be stored electronically. This does not only saves you the need for more room, but makes it easy to retrieve some old tenders if needed.
Electronic procurement is both time-saving and efficient because the electronic handling of tasks simplifies the purchasing process, hence increasing transaction speed. The procurement cycle is also sped up due to electronic enabled relationship with customers. Conducting purchasing electronically makes it easier for every department to confront to company procurement standards resulting in standardized buying. The use of electronic procurement reduces errors in transaction because paper work is streamlined hence easy to check for errors. There is also easy comparison of new and old orders to ensure the new ones are orrect. These are some of the benefits of electronic procurement. Click for more on digital procument services: https://en.wikipedia.org/wiki/Procurement.
