Why Businesses Are Adopting E-procurement Systems

Adoption of technology in business and organization management has made things much easier than it has ever been. Customization of technology in various sectors of the economy to serve a certain purpose has been on the rise. The application of customized technology in transactions is becoming widely accepted. One area which has benefited from technology is procurement. The development of e-procurement systems has made the purchasing process fastSFVWAEGKLUHG, easy and convenient.

However, some organizations and business shy off from using e-procurement systems. Their fear may be attributed to the unknown outcome of introducing a new policy to the organization.For instance, adoption of new technology requires a lot of training for the employees to utilize it effectively. The training process may also seem too expensive for small businesses. Despite the initial cost of installation and training, e-procurement systems have proved to be of great benefit to organizations that use them.

Benefits of Using E-Procurement Systems

Increased productivity

After the installation, and learning how to use the e-procurement systems, the procurement process becomes quite easy and fast. Use of templates, for instance, means that the paperwork can be filled up a lot more quickly. Having the procurement records stored electrically leads to quick submission of reusable tenders. The entire procurement process, which requires some individual if done the traditional procurement way, can now be done by a single person in reasonable time

Standardized Transactions

E-procurement uses electronic catalogs, which makes it easier for buyers to compare offers. Suppliers are therefore careful not to quote very high prices. With punch out services, various department can procure standard goods through e-procurement systems. E-procurement makes it easy for every department within the organization to conform to the procurement standards of the organization.

Less possibility of errors

Electronic paper work, which is used in e-procurement systems, is streamlined. As such, it makes it easy to check for errors. Besides, it is easy to retrieve past orders and compare them with the current one to ensure that there are no errors.

Cost efficiency

QSWDRAGTSE5YTDqwdE-procurement systems save a lot of money, which would have been used on the paperwork involved. The filing of procurement paperwork is also an expense to the purchasing department. E-procurement enables files to be stored as soft copies.

Creation of trade communities

Since e-procurement applications are Internet based, which enables development of trading communities. Both vertical and horizontal trading communities can be formed. This helps buyers consolidate buying purchasing powers. Suppliers can also access new markets through the trading communities established.