E-Procurement and the Purchasing Process | Supply Chain Resource

In recent times, there has been a shift in the purchasing process.  This shift is due to the availability of E-procurement tools, which are powerful tools that have enabled organizations to eliminate the need for expensive and time-consuming paper processes. These tools allow for the automated creation, exchange, and execution of transactions between a buyer In this supply chain post, we will discuss E-Procurement and how the process is used by organizations to streamline their purchasing process.

What is E-Procurement?

E-procurement is a term used to describe a type of procurement or contracting process that uses electronic methods, such as the Internet or telecommunication technologies, for the procurement of goods or services. The concept of e-procurement can be traced to the late 1990s as digital systems and the Internet became more widely available.

E-procurement is a growing market that is gaining attention from vendors, contractors, and buyers. As with any new technology, there are still many questions about how e-procurement will develop and the impact it will have on the way business is conducted. While the concept is still being developed, companies are already beginning to experience a number of benefits from using e-procurement. Suppliers often find that e-procurement offers a number of benefits as well.

Benefits of E-Procurement

E-procurement has been a significant change in the way in which procurement is conducted. It provides many advantages that make the process more efficient, cost-effective, and effective. The following are some of the benefits of e-procurement:

1. Faster procurement process  - most of the processes are done electronically which saves money and time for businesses
2. Lower transaction costs - with new opportunities to buy goods and services at lower rates, it also eliminates overheads like paperwork
3. Better collaboration - integration with other key financial systems allows collaboration across business units
4. More transparency - better visibility into contract details directly impacts decision making during the negotiation
5. Reduced recruitment costs- hiring qualified staff can be difficult but with E-procurement the number of personnel is reduced.

Purchasing Process

The purchasing process is a complicated, time-consuming, and often confusing process to many people.

In the simplest terms, it starts with finding what you want and then goes through a series of hoops. Outlined below are some of these hoops:

1) Assess what you need or want.

Assessing the needs and requirements of your company with this checklist will help you make sure you are prepared.

 2) Research Work.

This step is just as important as assessing needs. You want to make sure the product that you are purchasing will fit within your current capacity, technical support, and budget. Take into consideration each of these factors before making your final decision.

 3) Check it out.

The best way to make sure you are getting exactly what you need is to physically check it out. Make sure the product and its packaging are safe for use before buying it outright (as opposed to lease, etc.).on offer or in-store (or online).

 4) Order Management

Order management is a key part of the purchasing process. It is often the step that includes receiving, analyzing, and processing customer orders as well as performing related tasks such as generating purchase orders.

 5) Record Keeping

This is one of the most important steps, as it involves storing all of the paperwork, invoices, and data regarding the purchase order. This step is necessary for annual audits of your company.

Wrapping up

Forget the old days of paper ledgers and lever arch files. E-procurement is the future. So if you want to be on top of your business game, get ahead with e-procurement!

It's not just about buying online. The possibility of using e-procurement to purchase services is also there. The key thing here is to think about how your business can benefit from e-procurement.