Why E-Procurement Makes For A Great Investment Asset

e-Procurement software delivers many benefits to organizations looking to automate their manual procurement processes, better control organizational-wide spend or improve supplier management.

Eliminates slow and laborious manual processes

Widely regarded as ‘the bane’ of the finance team’s life, the manual processing of supplier invoices is a time-consuming process and inherently prone to error making. The missing PO or VAT numbers, incorrect financial values and non-matching line items are repeat offenders; the act of manually entering data and rectifying such issues can perpetually slow down the entire processing and payment of these invoices.

Sourcing new suppliers

Offering both online tendering and auction capabilities, e-Sourcing helps drive best value and optimizes strategic sourcing outcomes. The simplified electronic process helps to remove paper, process time and manual overheads from supplier negotiations. Risk is less as only those suppliers who meet criteria specified at the beginning of the process are able to tender for work.

Faster order to delivery timescales

 Increasing the efficiency from order to delivery timescales by automating requisition approvals is an essential eProcurement benefit. Enabling such fast online approvals, eProcurement software gives both users and approvers instant access with no downtime waiting for approvals, or lengthy paper work to manage and file away.

Spend visibility

Getting a grip on what is being spent across the organization to enable more accurate budget and cash flow management is also a key benefit of eProcurement solution. Spend visibility isn’t easy, especially for those organizations with complex, indirect spend categories. However, eProcurement enables spend across the business to be tracked and monitored and be available in real time at the click of your mouse. As a result, organizations can better control costs and cash flow, identify areas for cost savings and enable more accurate budgeting.

Sourcing strategy improvement

Most of the procurement experts looked to eProcurement to gain a better insight into what the organization is spending to help improve their sourcing strategies. This clear view on what is being spent, by who and why is key to helping the procurement team better understand the organization’s current and future sourcing requirements. This enables to help in identification of future sourcing opportunities and savings in the future.

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