How Will eProcurement Help Your Business?

Search:

How Will eProcurement Help Your Business?

eProcurement can be defined as companies purchasing goods and services electronically, commonly using the internet. The internet and other exciting modern technologies are rapidly replacing conventional purchasing methods.

Traditionally, the procurement process would look something like this:

1. Research the product requirements and look at several catalogues and suppliers
2. Manually fill out the paper purchase order(s)
3. Wait days or weeks for the purchase order to be authorised
4. Send off the completed order form in the post
5. Deal with any queries regarding the order
6. Wait for the goods to arrive
7. Wait for the invoice to arrive
8. Send off a cheque when the invoice comes.

eProcurement can rapidly speed up the procurement process.

1. Research the product requirements using online catalogues and suppliers
2. Complete the online purchase order, which is received immediately by the supplier, in the right format
3. The supplier can automatically electronically inform the purchaser when the goods are going to arrive
4. Pay for the goods immediately using eInvoicing (electronic invoicing), which rapidly speeds up the payment process, and can result in a discount for the purchaser if the invoice is paid within a certain number of days. Or, alternatively, wait for the invoice and then pay using eInvoicing. There is no more waiting to get a cheque raised and relying on a different department.

Online catalogues allow purchasers to browse products and easily compare specifications and other details online. This makes choosing the right items easier, and helps to reduce the delay in ordering, as purchasers don’t have to wait for paper based catalogues to be sent to them. In addition, online catalogues can be updated as frequently as necessary in order to provide the most up to date products, prices and delivery information. Paper based catalogues may only be updated once or twice a year, which might not be enough for products that are changed frequently such as computers and other technology related goods, or seasonally such as winter and summer related items.

eProcurement cuts down on the amount of administration required to order goods and services. This is turn, helps to reduce costs in terms of hours spent filling out forms, and allows staff to focus on other duties and tasks. Mistakes and errors relating to procurement can also be dramatically reduced. As the process is automated, there is no chance of the purchase order getting lost, or not being posted, or incorrectly filled in. The majority of eProcurement is carried out using a standard PC running a web browser, which means that any PC can be used, and there is no need for a dedicated procurement computer.

The eProcurement system at the supplier’s end, will automatically process the order with minimal human effort required. This ensures that there is no more illegible handwriting or faxes to decipher, no more unclear forms, no more getting confused, and no more over or under ordering because the terminology wasn’t clear. In addition, because orders are placed electronically and not paper based, they can’t be mislaid by the supplier.

In larger organisations eProcurement is popular as there may be more suppliers used, and many different departments and locations using different suppliers. Electronic tenders allow suppliers to apply for contracts and work, even from different countries.

eProcurement can be combined with Supply Chain Management software, which allows exactly what’s needed to be ordered, when it’s needed. The Supply Chain Management software can automatically order parts or items as required, so that production can continue. This is ideal for factories or other companies that may rely on numerous components and parts to make their finished goods. Consider the delays and inconvenience if a car factory ran out of wheels or a clothing manufacturer ran out of cotton.

eProcurement is transforming the way businesses buy and sell to each other, and is making the procurement process much simpler and quicker for all involved. Thanks to eInvoicing, goods can be paid for much quicker, which allows for better cash flow and budget forecasting for the purchaser, and means that suppliers get paid quicker. In addition, both purchasers and suppliers can save time and money as laborious manual time consuming procurement tasks can be quickly replaced with much faster and easier processes. As well as the time saving and financial implications, eProcurement reduces the amount of paper, and printer ink needed to place and process an order, and so is more environmentally friendly than traditional purchasing processes.

Article Source: http://articlenexus.com

Find out how ProcServe can help you introduce eProcurement, and eInvoicing to your business, and take advantage of trading via an electronic marketplace.

Please Rate this Article

Not yet Rated

Click the XML Icon Above to Receive E-Commerce Articles Via RSS!

Additional Articles From - Home | Business | E-commerce

STOP Paying for Your Ads! FREE Pay Per Click!

$8,132.26 Per Month on Craigslist

CraigsList Blackhat System

Everything you need for your website and home business.
	Adsense Site Builder
	Adsense Analyzer Software
	Clip Art
	Domain Names
	Header Graphics
	Make Money Online
	Photo Art
	Resell Products & Free Stuff
	SEO Software
	Web Hosting $4.95/mo
	Website Templates
	Web Site Promotion Tools
AdvancedWebsiteTools.com

	Print This Article
	Add To Favorites
	Email to Friends
	Ezine Ready

Submit Articles
Member Login
Top Authors
Most Popular Articles
Submission Guidelines
Ezine Notifications
Article RSS Feeds

(Your 160x160 ad here)
Only $50 a month-click here

Link Exchange
Blog by WordPress
Privacy Policy
Terms of Service
About Us
Contact Us
Banner Advertisements

Have you Victimized by a Business or the Government? File your consumer complaints or business complaints at BusinessReporter.net!

Structured Settlement?
Free information to help you learn more about structured settlements, your rights, and how to select the best company for you.

Affordable Discount Dental Plans
Choose from over 30 top-quality national and regional discount dental plans. Save 10% to 60% on most dental procedures

Classic Autos
Replica Kit Cars

Staffing Resources
Online Recruiting

Links

Bad Credit Repair

Hair Loss Remedies

Steiff Bears, Antique Bears

Model Railroading | Model Trains

McCain Sucks

mccain for president

Free Diabetic Supplies

Antique Radios | Ham Radios