E-procurement, also known as electronic procurement, is an internet based purchasing system used by businesses in order to receive goods and services at a faster and less costly rate. Those are just a couple of the many advantages of E-procurement. The benefits of E-procurement have led to an increasing number of companies to implement such systems in the efforts of increasing their ROI and to better serve customers.
Advantages of E-Procurement
- With proper implementation E-procurement systems can connect businesses and their processes straight to suppliers.
- Businesses are better able to manage their exchanges with vital suppliers because E-procurement is an organized form of open communication.
- Decision making is made easier with time stamps and the organization of information.
- Business transactions are made uniform with templates and easily tracked since managers can automatically see purchases.
- The tracking ability of E-procurement allows managers to confirm pricing, cutting down on unnecessary purchases/costs.
- E-procurement also saves buyer time because it eliminates phone calls and trips away from the office, since all purchases are made online right from their desk.
- With instant order placement, shipping time is also reduced.
- One other benefit of E-procurement is that firms have the ability to hone in on their most profitable contracts.
- There are 2 ways to implement an E-procurement system; step-by-step or by total replacement as known as a parallel system.
- It is important when implementing an E-procurement system to be aware of your resources and time, especially if you choose the total replacement route.
- Another consideration to keep in mind is that you may not see an immediate ROI due to the cost of training and equipment. It generally takes 1-2 years to see a large ROI for an E-procurement system.
For more information or a quote contact RobotWorx at 740-251-4312.