What is e-Procurement and how it can automate the management of your area

e-Procurement is a digital solution to manage the procurement area, by automating processes such as orders, quotations with suppliers and approvals, thus reducing the operational burden on the buyer and procurement teams.

With the use of such tool, manual and bureaucratic daily tasks of procurement are carried out and controlled in a single environment – freeing up professionals of that area to focus on the company’s strategies.

The buyer doesn’t have to call or send e-mails to their suppliers, to quote and negotiate prices and deadlines, for instance, because this is done automatically by the platform.

In e-Procurement, all purchase steps are recorded, from order to payment (Procure-to-Pay):

Purchase orders
Supplier selection
Price quotations
Comparative map indicating the best proposal
Invoices
Payment

See below how the automation process works and what are the key benefits of digitization for buyers and businesses.

How can e-Procurement impact the procurement industry?

For a long time, purchases had been conducted manually. The department’s main function was to provide support to other areas, even with high expenses.

With the increase in market competitiveness and technological advances, organizations had to rethink their procurement strategies, focusing on cost reduction and innovation.

Additionally, uncertain scenarios, such as health crises, geopolitical conflicts and product supply shortages, have also driven the digitization of global supply chains.

Today, Procurement is considered one of the most important areas for business results – and includes other relevant aspects beyond savings, such as sustainability and innovation.

Understand the automation process of procurement processes

Procurement processes that haven’t been digitized and integrated yet, that is, those dependent on many spreadsheets, e-mails and prints, impact the productivity directly – and even the motivation of procurement teams.

The excess of operational activities and low level of control and transparency in processes and transactions can lead to important financial losses for the business, such as:

Low level of savings (savings generated with purchases)
High procurement lead time
Manual and disintegrated processes
High cost of the procurement process
Lack of history and monitoring
Poor auditing and compliance
Low visibility of procurement performance
Low level of collaboration with suppliers

But now, in the face of digital transformation, procurement professionals can act with more intelligence and strategy, in search of better results for the company.

With the automation of procurement processes, all actions related to acquisitions are recorded and can be integrated to other systems.

Digitization allows buyers and managers to follow each step of the procurement flow, and communicate much more easily with their business partners.

What are the key benefits of e-Procurement for procurement?

Savings

One of the main benefits of using the e-Procurement solution consists in more savings for the company.

With the adoption of such tool, buyers will have greater control over expenses and the operational costs of the sector will be reduced.

The solution allows quotations with several suppliers at the same time and also faster negotiations, thus increasing the chances of savings and lead time reduction.

Besides, the visibility of data and information on the platform can provide important insights for the planning of future purchases.

Agility

The use of an e-Procurement solution makes the procurement journey more agile, as the full procurement cycle can be automated, freeing buyers from these activities.

Instead of countless e-mails and printed papers, the buyer can focus on operational processes in a single place – and, with that, has an integrated and strategic view of the area.

Access to reports and tracking of the area’s performance, in real time, will also speeds up decision-making by professionals.

Being a cloud solution, e-Procurement doesn’t require installation on machines – that is, it can be accessed from any place and any device connected to the Internet.

Governance

The ethical and responsible behavior of businesses is vital to thrive and grow in an increasingly competitive market.

In the certification stage, for instance, the e-Procurement solution enables to check if suppliers meet all important requirements to be your partners.

This procedure helps minimizing supply chain-related risks and their possible negative impacts on the business.

e-Procurement allows also to consolidate and record all operations, which makes processes with your partners more transparent, traceable and auditable.

Collaboration

During all procurement stages, the e-Procurement solution helps to create an agile, clear and efficient communication and collaboration channel between buyers and suppliers.

All those involved can easily search and follow the status of any order, from the start of negotiations to the delivery of the goods.

In this way, communication with suppliers can be optimized and monitored, and can be conducted at any time, place and time, including via smartphones.

Access to supplier performance indicators can be also shared with partners, with the purpose of drawing up joint action plans.

Know Mercado Eletrônico’s e-Procurement solution

Mercado Eletrônico’s e-Procurement solution eliminates the sector’s operating costs and helps procurement teams to achieve the organization’s business goals.

This digital platform automates the whole procurement cycle, from ordering to payment, allowing the access and control of processes from any device.

In addition, Mercado Eletrônico’s e-Procurement is a responsive and secure platform, which offers agility, savings, governance and collaboration.

See below the key benefits achieved with Mercado Eletrônico’s e-Procurement solution: