E-Procurement sounds as a very complex term and for this; many users feel the urge to avoid it. But how much complex it may sound it is actually way more simple and useful. The process of purchasing and selling of products or services online through an electronic medium like the internet is known as E-Procurement. This process comprises of a whole bunch of processes like Indent Management, RFX creation, e-Tendering, e-Auctioning, Vendor Management, and Contract Management. Several businesses are taking up E-procurement as they are getting to understand the wide advantages of it. The main reason for which companies are taking up E-Procurement is to increase productivity, make daily transactions visible and make it easier for users to get the necessary supplies.

You may feel a chill in your spine by the term E-procurement and this is felt by several professionals all over the world. There is a myth that is believed to be true by several users that e-procurement is very complicated and opens up your business to privacy concerns and errors and is very time-consuming. But today let us bust these underlying myths and show you how this exceptional process can bring you benefits.

Transparency of transactions

With E-Procurement, you will get centralized tracking of transactions that provides you a complete report of requisitions, purchased items, orders placed and payments done. Additionally, it ensures compliance with existing and established contracts.

Cost Reduction

With E-procurement, you can easily cut down your expenditures as it prevents duplicate spending, leverages volume buying. It also takes out paperwork, rework, and errors which also cuts down your expenditure additionally.

Increased Productivity

With the implementation of E-Procurement, productivity will also get increased. Through an on-line requisition and ordering system, internal customers will be able to get their desired items from a catalog of approved items. Procurement staff can be discharged from disposing orders and handling the lesser valued transactions for concentrating on strategic sourcing and improving supplier relationships.

Faster Transaction

The handling of tasks electronically supports and simplifies the purchase process which ultimately increases the speed of the transaction. The procurement cycle further gets speeded up because of the electronically enabled relationships with suppliers. And additionally, it also eliminates irrelevant activities to make you more focused on more valuable tasks.

Controls

The standardization of approval processes along with formal workflows guarantee that the best authorization level is being applied to each transaction and that spend is directed to draw off existing contracts. Users can easily locate products and services from preferred suppliers and are not able to create extremist purchases and this improves compliance to policy.

There are plenty of significant advantages of E-Procurement which can help you to easily cut down expenditure, increase efficiency, and speed up the process. You just need to implement it correctly.