Buying smart is very important to achieve good results in businesses. Therefore, the procurement area must be very strategic and well structured. With the addition of technology, those processes that used to be bureaucratic and lengthy are now simple, fast and organized. And all this improvement occurs thanks to e-procurement solutions.
But while these solutions revolutionize the procurement process, many managers are still unaware of the possibilities offered by them. Is it your case? If so, learn with us how they work and all their benefits.
What is e-procurement?
E-procurement refers to the automation of all steps required to make B2B transactions. Unlike traditional e-commerce, which allows only buy and sell processes on-line, e-procurement ranges from supplier prospection to order closure itself.
E-procurement includes the possibility of using e-sourcing – which enables searching for suppliers, and e-learning – which offers customer education before any purchase; the ERPs are then in charge of integrating data from different areas.
How does e-procurement impact the procurement area?
This solution changes the way negotiations and procurement are conducted, and impacts the area in a direct and positive way.
For a long time, B2B purchases had been made in a manual and poorly strategic mode. With the use of e-procurement, the area becomes even more important to better company’s results, improving and impacting Procurement Management too.
This solution will eventually standardize the goods and procurement cycle, thus preventing shortage issues, for instance.
What are its main benefits?
The changes triggered by e-procurement can reap benefits for the whole business. See the key ones below:
Cost reduction is one of the best ways to optimize your company’s management. Using an e-procurement solution, you can manage expenses and save more time for purchase operations, when compared to traditional quotation methods.
Another benefit of this solution is the streamlining of all internal and external procurement-related processes, since everything is automated. The tool takes the functions of sending requisitions, quotations and procurement orders, among other features.
All these functions involve the tracking of transactions, allowing the manager to monitor all activities of buyers and suppliers.
E-procurement solutions can be also used to exchange procurement information between suppliers and buyers. This kind of technology enables an easier communication and much safer negotiations, as the record of exchanged messages is saved, thus facilitating a possible audit.
A well-controlled information flow, with substantial content, allows collecting accurate data, in order to check the company’s tax situation.
In general, quotations sent by conventional means are much less efficient. On the other hand, electronic quotations avoid unnecessary waste of time in the procurement process. There are also those situations in which purchase orders don’t occur within the deadlines, with the consequent delay of shipping and delivery processes – which affects the purchase of products and services.
In this case, an e-procurement solution can be vital to guarantee that the company’s logistic processes are conducted in a satisfactory way.
With the use of this technology, supplying companies will be forced to work with more competitive prices. Offers must come with details about the proposal, quality and delivery of the product or service required by the buying company. Additionally, procurement professionals will receive more concrete supply proposals and, when they must decide on the best suppliers, will have more reliable information to make their choices.
Another benefit offered by e-procurement is security in procurement operations. The automated and safer e-procurement system helps to curb the practice of improper acts during the corporate procurement processes.
Using this solution, procurement managers have access to data provided by BI reporting. Metrics taken from e-procurement, for instance, help to evaluate the performance of both suppliers and buyers, analyze the achieved savings (a required value to reduce costs effectively), improve the logistics of purchased products and even better strategic planning.
In other words, e-procurement solutions can help not only to optimize the very procurement process, but also in decision-making for your business.
Do you think e-procurement can make your company’s daily tasks easier? Then contact us at Mercado Eletrônico. We are leaders in B2B technological solutions and services, and we have already streamlined the procurement areas of several large-sized companies.
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