It is a given that we are encapsulated by the all-encompassing wave of digitization. It is a path-breaking renaissance of the 21st century. Everything that is happening around us, the way we are running our lives has a touch of digitization. And we can’t escape from this truth. There are places where people don’t have metalled roads or railway network but have internet and smartphones. Digitization has so revolutionized our lives that even our businesses will falter or lag behind if we do not embrace this transformation.
Digitization has eased the way of doing business. It has made work faster, smoother and more efficient. It has brought transparency in business, reduced costs and ramped up quality and standards of operation. One of the areas where digitization has made a big impact is e-procurement. E-procurement, also known as Electronic Procurement is a process where businesses take the aid of technology and online applications to digitize the procurement and supply chain processes.
E-procurement gives a new lease of life to your business operations. It automates all the business processes, eliminates the loopholes and gives your business a better chance to excel. With the induction of e-procurement in your business, client and supplier relationships will blossom and profits will swell.
Let us look at some of the reasons why e-procurement is the right move for your e-commerce business.
1.Streamline process: With the help of e-procurement applications, you can have a clear picture about the purchases from various suppliers. Documents exchanged online will speed up the procurement process and save a lot of time. The automated processes will eliminate any chance of mistake that happens with manual data entry work. Delays or late payments can be easily tracked. This will create a better understanding between the suppliers and the business owners and a rock-solid relationship will bloom.
2.Cost reduction: E-procurement negates any duplicate spending by controlling your purchases and having an eye on the cash-out rate. The cash-out rate refers to the share of the procurement expenses that are controlled by the purchasing department. E-procurement will also help in leveraging the volume of purchase and save costs by eliminating paperwork.
3.High Visibility: One of the best reasons why businesses are adopting e-procurement system is that it offers a complete view of the procurement process. The e-procurement system encompasses all purchases, processed orders, payments and invoices. With such a centralized procurement-to-pay structure, everything becomes visible. If you want to make a monthly report or do a future forecast, you can get access to all the data from the e-procurement system easily.
4.Increased productivity: E-procurement accelerates productivity by manifold and helps in getting a splendid return on investment. It leads to faster payment of expenses at an early stage and brings more transparency in the process.
5.Faster transactions: As we have mentioned earlier, E-procurement system is a time-saving process. This electronic handling system simplifies the purchasing process and speeds up transactions. It keeps suppliers happy and the procurement cycle gets a boost.
6.Reduction of errors: When the paperwork is eliminated and the entire documentation parked online, there is minimal chance of any errors. You can easily go to past transaction history and get an idea of how far you have come or whether any changes need to be made in the procurement process.
E-procurement is the future of any business. It is a necessity in the age of digitization and something which every business needs to embrace to stay neck to neck in competition. E-procurement takes a business to new heights, increases profitability and eliminates any risk. With this electronic system taking care of the most difficult part of your business, you can focus on strategic corporate activities.