eProcurement is defined as the conducting of business transactions via electronic methods. The ‘e’ in this term stands for “electronic”. It may be utilized in each process stage and it may start with the actual sale coming from the purchaser and may end with the payment and invoice of the customer.
The internet itself is not new, but it is still, even today, rapidly changing and evolving. It has become one of the best methods for businesses to cut overhead costs and even broaden their customer base through marketing directly to the end consumer. As you can see, eProcurement is not just advantageous for businesses but also for the customers. Customers are no longer limited to what they can find in their hometown stores, but have an almost endless range of selection of merchandise online. With just few clicks, businesses and customers can immediately find the best price deal for their goods online.
Before eProcurement existed, traditional procurement was the accepted norm in all businesses. Procurement or traditional purchasing involved different interactions and steps with other departments of the company and the suppliers. Traditional procurement involves a lot of conversations (telephone or face-to-face) and a long paper trail with forms that track and document every step of the process as procurement officers interact with suppliers or long-time partners. It was merely a lower-end purchase process without a lot of thought given. In recent years procurement has changed to become a strategic function wherein the procurement officers are looking for suppliers that will fit the overall strategy of the company.
Today, eProcurement is recognized by many as more beneficial since it provides a fast and convenient purchasing system. It helps to modernize the workplace and get the business updated with the latest purchasing and procurement methods. eProcurement software also help the departments to be able to manage their supply chain efficiently. In addition, it opens up a diverse market range.
eProcurement helps speed up the entire process, cuts out unnecessary steps and will ultimately save money through better, more efficient management and spend control. The entire process will also be simplified considerably with the aid of real-time interaction of pre-approved trading partners and suppliers. It also shortens the time to delivery allowing for shorter lead times and better cash flow management.
eProcurement by its very definition involves technology. Utilizing an in-house eprocurement system is far better than a traditional paper-based system. Things have evolved even further with cloud procurement. The eProcurement solutions in the cloud address the challenges through taking advantage of all advanced technological innovations. By utilizing a cloud-based approach, companies have access to their procurement system virtually any time and anywhere; all they need is a device with Internet access – computer, laptop, tablet, or Smartphone. Many different online businesses have adopted applications in the cloud because instant visibility, fast adoption, Amazon/Google like usability, transparent pricing, and lower burden on IT.
eProcurement and cloud-based technologies can help advance your business, save you money, and bring about strategic changes in thinking far beyond the role of traditional procurement in years past.