Monday, September 22, 2014
3 Key Benefits of E-Procurement for Businesses
 |
| Source |
Today’s economical frenzy scenario requires businesses to cut down costs. And one of the best ways to do so is through e-procurement. Hence, businesses switch to e-procurement solutions which give myriad of benefits along with improvement in time-to-market mechanisms & reduction in operating costs to enhance profit margins.
The importance of E-procurement lies in helping businesses avoid costly mistakes & maintain their
competitive edge.
This insightful piece of article
throws light upon the 3 crucial benefits of e-procurement for businesses.
Get rid of high administrative
costs
High administrative costs
eat into a large chunk of business profits. When you implement local B2B or B2C
e-Marketplace, it automates the entire administration process involved in
purchasing. Thus, it makes the business administration a truly paperless mechanism.
Traditionally, procurement
has been viewed with criticism for its complexity in terms enormous paper-work.
This still chases many organizations.
E-procurement relieves staff
from huge administrative burden which is the first major crucial benefit of
e-procurement for businesses. It automates key tasks, saves valuable time &
ultimately saves crucial money to be used for productive purposes.
Reduction in purchase costs
This is the 2nd
crucial benefit of e-procurement for businesses. E-procurement does not fundamentally
reduce purchase costs. However, it
empowers the organization to achieve important goals in the following manner-
· E-procurement introduces a system which people
can easily use. For instance, it ensures that everyone in business adheres to the
preferred supplier rules and preferences. This reduces maverick buying which causes 20% more payment due to buying on an
ad hoc basis.
·
It increases the organization’s buying power
with its selected suppliers.
· Transactions with suppliers electronically
increase the chances of getting significant bulk discounts from suppliers. This
happens as the administration costs of suppliers also plunge.
·
The reduced ‘maverick buying’ from business
employees cause suppliers to become more committed due to assurance of greater
share from the respective business organization. Thus a valuable long term relationship
is established between B2B or B2C entities.
Reduced Purchase Cycle Time
Certain organizations experience
fritter due to their requisition-to-delivery time which may extend for various days
or months. This makes even a proper procurement procedure simply unfeasible especially
for important and immediate orders and sourcing. This happens because of delays
due to paper-based requisitions which require manual authorization for checking
budgets & commitments before ordering.
E-procurement offers an
efficient e-Marketplace solution. Its inbuilt workflow streamlines business process
thus avoiding common bottlenecks by the following ways-
- It enables automated check of requisition with the help of pre-configured settings & electronic authorization mechanisms.
- It enables complete analysis of business purchase cycle easily thus speeding up the whole process.
- It enables the procurement staff to quickly identify common bottlenecks without delays due to internal or external forces.
- Simply, it empowers the staff to get the required job done quickly & without sacrificing control!
Note- E-procurement
is one essential part of Purchasing & Materials Management. Indian Academy
of Management is conducting a practical and insightful business seminar on Purchasing & Materials Management.
The goal of this seminar is to make executives
and corporate personnel learn how to make purchasing
a constant profit centre!
In includes detailed explanation
of the following and how it can be used to enhance business profits-
- E-Procurement
- Legal Aspects of Purchasing
- Overseas Buying
- Vendor Management
- Negotiations in Purchasing
- Financial Aspects of Materials Management
- Techniques for Control of Inventory
- Modern Storage and Warehousing Practices
- Logistics & Supply Chain Management Concepts
Subscribe to:
Post Comments
(
Atom
)
E-procurement is the new age procurement and has many advantages over old procurement service. Lotus Procure is a very nice website for managing E-procurement.
ReplyDeleteNorth America held the largest share of over 33% in 2021, owing to the presence of numerous manufacturers and retailers offering quick access to merchandise. According to a survey carried out in the united states in 2019, 53% of Americans used intercourse toys for bettering their sexual experience. Social acceptance and liberal sexual life-style in the united states and Canada, along with the presence of quantity of} grownup shops, are expected to spice up demand for grownup novelty items through the forecast interval. Manufacturers in North America corresponding to Doc Johnson in the united states and Cal Exotics in Ontario have experienced increased gross sex toy store sales of intercourse toys within the first quarter of 2020.
ReplyDelete