E-Procurement or electronic procurement refers to the process of purchase and sale of goods or services through electronic methods, primarily using software through the Internet. It works as an alternative to the manual process of procurement and is certainly superior to the latter in many different ways.
E-Procurement advantages are becoming more impactful as organizations are able to adapt to new technology. The main reason companies have embraced e-procurement is to increase productivity, provide visibility into day-to-day transactions, better control organizational-wide spend and most importantly eliminating the entire manual procurement processes.
There are innumerable benefits by using e-procurement system. Let’s take a look at the top few major advantages by using an e-procurement system.
Since e-procurement system automates a large chunk of the procurement process, it reduces the time and money spent on the purchasing cycle as a whole by eliminating the paperwork, reworks and errors thereby saving costs associated with paper-based systems.
Greater Spend Visibility
E-procurement system provides a very structured reporting on requisitions, items purchased, orders processed and payments made ensuring that all the transactions are under your organizational policy compliant. Detailed spend analysis can be done based on these detailed reports thereby reducing unnecessary spends.
As e-procurement system automates some of the manual processes your employees will have more time to spend on more strategically significant functions and tasks. Even if you want to gather some of the historical records, it can be done in minutes.
Simplified Procurement Procedures
Standardized approval processes and formal workflows ensure that the correct level of authorization is applied to each transaction and that spend is directed to draw off existing contracts. With the e-procurement applications supporting various currencies, taxation and financing, shipping regulations and more, it is simple for buyers and suppliers in different countries worldwide to communicate and cooperate.
E-procurement advantages are significant bottom-line benefits, including cost reduction, process efficiencies, spending controls, and compliance.
How can FinlyFinance be helpful in organizing your purchase process?
Finly is a Finance Management & Governance Suite for businesses to automate, gain visibility & control business spend. The tax compliant platform comprises of a scalable & intelligent E-Procurement System. The powerful policy engine governs all business transactions & an integrated payment technology system allowing automated reconciliations. Finly helps you gain insightful reports in real-time on your account payables & removes all spend management hurdles while your business scales.