A good e-procurement system helps a firm organize its interactions with its most crucial suppliers, provides provision of supplier performance monitoring utility to help control costs and assure maximum supplier performance, provides option for department users to confirm pricing, and leverage previous agreements to assure each new price quote is more competitive than the last.
E-procurement is not just making purchase online. A well defined e-procurement system can connect organizations along with their processes to the suppliers. This may include management of correspondence, RFXs, bids, questions and answers, previous pricing, and multiple emails sent to multiple participants.
Traditional Procurement versus E-Procurement
Benefits of E-ProcurementE-procurement enables the purchase-to-pay process online.E-procurement will make simple and quick requisition-to-payment process including a user-friendly interface and pre-sourced catalogs tailored to the requirements of the individual user .It will provide simple and quick strategic sourcing process with standard procurement processes and tools, as well as easily accessible information. Electronic processing leads to great time savings and efficiency .Below are the benefits of system
- global, automated processes incorporating best practice and eliminating unnecessary activities
- e-enabled relationship with suppliers, which speeds procurement cycle times and facilitates supplier performance improvements; and
- greater data accuracy, which minimizes ordering inaccuracies and provides the essential foundation for better management through measurement and analysis.
- Reduction in Workload and potential errors linked to different stages of tender and documentation
- Constant Availability for bidding
- More time to prepare and refine bids Reduce Process Time No need to travel Reduce mail, courier and communication cost