Electronic procurement is also known as the supplier exchange. This is a platform that enables the supply of sales in various levels right from business-to-business, business to consumers or business-to the govenment bids via the internet through a networked system. E-Procurement system contains indent management, e-tendering, e-informing, and even purchase order integration. Other elements of this system entail the request for proposal, request for information, and the quotation requests.
How does it Work?
Based on its technical foundations, e-procurement enhances both the business process and the supplier/consumer relationship. It makes use of the communication technology and electronic information to strengthen the links between the supplier and the consumer, thus improving the internal and the external processes. Importantly, this system is a crucial component in the e-commerce and e-business.
E-procurement software checklist
Purchasing e-procurement software effectively entails consideration of all different types that are available and the way there can be combined uniformly with the present business system, structures, as well as the employees’ customs to help the business deliver. Consider the following checklist when purchasing this system.
Feature Set Packaging
Evaluating the feature set packaging of e-procurement software is a crucial aspect that an organization should take into account before purchasing this system. In most cases, these products are primarily available in two categories, which include a modular and the all-inclusive or the P2P matching set. At times, a firm may be required to install the full set, right from the requisition creation down to invoice management and reconciliation. On the other hand, others may opt for a robust requisition and the order management system, to be integrated by the exciting management tools. When choosing the packaging modular, the organization should not discount the features offered by the over gone modular.
When an organization is choosing the e-procurement that is best for it operations, considering the software’s interface is critical. It is vital to select a provider who can feature a vibrant network entailing registered suppliers so that the users can establish new vendor relations and integrate the existing suppliers as well. To succeed this seamlessly, an organization should critically evaluate the dimensions of the network to figure out the number of new suppliers the system is going to induce into the business as well as the count of the existing suppliers in the net at present.
Reduced Transaction Errors
Many businesspeople understand the enormous loses that can result from simple mistakes arising from any commercial transaction. Fortunately, having e-procurement linked to your venture, all your electronic accounts are streamlined thus checking on errors become easier. Similarly, referencing for the older orders is also made easy. This implies that orders can be compared to establish the operations trend while at same time issues can be rectified in real time.
E-procurement process is both efficient and timesaving. Furthermore, electronic handling improves and shortens the purchasing procedure. This way the transaction procedure, that can be slow and tedious is increased significantly. The baseline, e-procurement does away with all unnecessary activities in commercial operations thus giving you more time to focus on the valuable tasks.