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Benefits of E-Procurement.

As technology continues to advance, and digital transformation becomes the norm, the question is no longer, “Is E-Procurement right for our organization?” but “How can we most effectively and efficiently leverage E-Procurement to support our goals for profitability, growth, and innovation?”

Electronic procurement, commonly referred to as E-Procurement, is the automation of the procurement and supply chain processes using internet-based applications and technology. Regardless of size, industry, or age, businesses that want to streamline and optimize their procurement function can find substantial benefits in the robust capabilities of an E-Procurement solution.

A bad procurement monitoring process travels at the speed of light

1. Financial savings:
- Digital transactions save money, thanks to lower costs of labor and fully automated processes. Over time, these savings per transaction add up to constitute significant financial gains for a business.

2. Streamlined workflow:
By using a single, automated platform for the main steps of procurement, businesses eliminate unnecessary administrative and manual tasks, thereby improving efficiency and reducing error. Teams can focus on more complex or higher value adding tasks.

3. Reduce lead times:
E-Procurement results in simplicity and transparency in businesses. Thanks to automated processes, orders are processed and completed much more quickly, meaning businesses get what they need faster.

4. Budgeting and spend control:
Budgets are a reality for every organization, and a hallmark of a great E-Procurement system. With a legacy system, budget calculations are all done by hand or in spreadsheets. There’s low visibility, no real way to enforce approvals for over-budget purchases, and one wrong keystroke can result in overspending and catastrophic procurement errors.
With procurement centralized on a single platform, companies can access real-time visibility of their spending. The platforms provide expense reporting and analysis solutions, so that finance teams can monitor and plan spending.



5. Visibility:
E-Procurement gives you centralized access to all your data. Track down a PO, a delivery note or an invoice and analyse the data collected to find areas where you can improve your processes.

6. Easy vendor management:
When you can view all your orders for a vendor in one place, you can strategize remarkable cost savings and easily plan for recurring procurement needs.

7. Audit trail:
For many organizations, the question of what was purchased is not as important as knowing who interacted with that purchase, from request to payment. An E-Procurement system will be able to log each touchpoint and provide a detailed trail of exactly who did what.

8. Increased Productivity:
Compared to traditional procurement processes, E-Procurement is less time-consuming. Having your records stored electronically makes it easier to submit reusable tenders and the use of templates means procurement can be filled out more quickly. The platform can be accessed remotely by requestors, approvers, and vendors.

Over and above the benefits highlighted in the article, it is important to note that the E-Procurement system can be rolled out in phases. An organization can start by implementing parts that reduce the most pressing bottlenecks that are slowing efficiencies in their current operations without the need to implement a potentially expensive solution all at once.

Get in touch with Tier Data Limited via https://procure.ke/ and we will help you in crafting a cost-effective future for your business built on greater efficiency, higher cost savings, and a stronger competitive position through our E-Procurement platform.