So its weekend and you need to shop. After a long tiring week, going around in multiple stores in different areas feels like a herculean task. On the contrary sitting back at home and purchasing all the required items online seems like the perfect option.
Change the scenario to procurement.
Stacks of invoices, contracts, supplier related paper work etc. makes for a cluttered and time consuming procurement affair. Manual intervention or human touch cannot be completely ruled out. In fact it’s necessary for obvious scenarios like negotiating for a contract, or inspecting supplier factory, or building supplier relationship. However, it should be kept minimal.
Many organizations today are moving towards automating different aspects of procurement like supplier on-boarding via supplier portals, contract scripting and storage via contracting tools, centralized repository for supplier related information, measuring supplier performance through smart tools, sourcing via online bids, analyzing spend using technology, payments through eProcurement portals etc. This helps organizations to make the procurement process efficient and accurate.
In this blog we would like to talk particularly about eProcurement or online procurement.
Online procurement has many benefits apart from the obvious like saving on time and human resources and enabling paperless transactions. For the sellers, it helps reduce operational cost, cuts down on the lead time – as time and effort spent on processing the request and confirming the order reduces, expands sales, etc. It also improves the overall performance.
For the buyers, it provides them with myriad of suppliers to choose from, enables faster ordering and reduces transaction cost.
However, there are few significant difficulties that organizations need to take care of while implementing or considering online procurement. They are – integration with the existing systems, cost, security issues and user adoption rate. It’s often observed that organizations face issues with the adoption of online procurement as procurement execs do not really use it, as intended, to carry out transactions.
To end with, online procurement can offer tremendous benefits to the organizations when rightly used and seems like the future of procurement transactions.
To know more about planning for eProcurement success, click on the download button to access the whitepaper-Planning for eProcurement Success