As part of purchasing management, e-procurement is one of the favorite methods used by companies to place their item orders.
What does e-Procurement mean ?
It is commonly referred to as “electronic or online procurement”. E-procurement is a commercial transaction based on B2B or Business to Business process and carried out from company to company. In fact, it is through e-Procurement that many organizations make their purchases on the Internet.
The global mechanism of e-procurement
E-procurement does not involve occasional purchases of products on a website. With a Source-to-Pay tool, companies go to a dedicated platform and view the items of interest on an online catalogue provided by an approved supplier. Buyers can then select items they want to purchase and place the order according to their current purchasing approval workflow.
The value of e-procurement
Thanks to this process, requests for quotation, purchase orders and invoicing processes are managed electronically and facilitated for both buyers and suppliers. The time required to place orders and get your products delivered is then considerably reduced and allows your organization to cut dramatically purchasing costs. Consequently, It’s not surprising that e-procurement systems are attracting more and more companies
Other than sales, businesses must use different ways to increase their productivity and remain competitive. E-procurement would thus be a means of supplementing and eventually replacing the sources of information usually known in purchasing processes, particularly in terms of product and supplier research.