So, many of us have a weird ideas stitched inside our heads that e-procurement is all about reducing purchase costs and increasing efficiencies. Although it is very much true up to a great extent, what if we are missing out on the bigger picture? Well, what is it then? The main focus of e-procurement lies in total cost and value addition. As an instance of value addition which can be collaborating with suppliers and developing long-term relationships with them. It is just a small part showcasing what e-procurement is capable of doing beyond savings.

As another instance that makes digital procurement stand out is that of easing out risk and increasing the visibility of the spend. So many of us often forget that while all of these lead to a great amount of savings, there are important systemic aspects that can be overlooked if attention is not provided on them. Technological infrastructure has been a blessing in disguise for the modern procurement world and this basically means that digital procurement can automate the entire Purchase to Pay (P2P) cycle and make it very easy for all the members of the organization.

These are just a few examples of how procurement is much more than just savings. Now, let's take a broader look at certain aspects of digital procurement which can enable organizations to go beyond pure purchase cost savings.

Technological Infrastructure

Technological changes can bring in drastic changes in an organization. It is important that a company is capable of adapting to these changes. In the world of procurement, being technologically advanced holds a lot of importance and makes way for the latest and faster solutions. This not just cuts down costs but also makes the procurement process much more efficient in your company. It helps you to drive down costs, save precious time and increase procurement efficiencies.

Implementation of an efficient E-procurement system

All being said, it is an undeniable fact that if your organization lacks a good and efficient e-procurement software, all of the above implicit savings would not be possible. An efficient e-procurement solution comprises of all the functions and modules which can be adjusted according to your needs.

Supplier Relationship Management

An organization may have to deal with much more than just a bunch of handful of suppliers. So, it makes it very much necessary that you determine and segment suppliers as strategic and non-strategic. This differentiation can be a criterion by their value addition in the long run. they are definitely not your strategic suppliers if they are adding little or primarily no value. The relationship with these suppliers require to be nurtured over time and this requires patience and perseverance along with close monitoring and preferential considerations that you can manage all in one place.

It is of utmost importance of maintaining a healthy relationship with your suppliers and you can find several e-procurement solutions that are comprehensive with several tools for effectively build and manage relationships with the vendor.

Reduction of Risk

For the majority of organizations, managing risk has been a very important aspect. With the growth of responsibilities, supply chain networks and processes, risk also takes a huge jump. by adopting an e-procurement solution, you will not be just able to automate processes but also reduce the risk. Detailed reporting and spend analysis are two of the most crucial aspects of digital procurement but yet they are highly underrated. They may have their own set of advantages when it comes to extracting critical data, these reports also come very handily for reducing risk. You can track the path of the money and avoid heavy expenditure.

On top of that, as these reports are extensive, your organization can analyze the trends and predict the future trends of the path.

Procurement talent gap

It may sound unusual, but having efficient procurement teams can boost up the profitability of your company and create a positive impact on the bottom line. Having a procurement team that can understand the importance of alignment of the procurement strategy with the overall goals is very essential. With a good team, you can make the negotiations faster and smoother and boost the process of building healthy supplier relationships.

So all these reasons together make it essential than organization takes care of the talent gap in their procurement team and trains them properly to get better results.