The major advantages of electronic procurement

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Information about The major advantages of electronic procurement

Published on September 22, 2016

Author: patrikgothi


1. KEY ADVANTAGES OF ELECTRONIC PROCUREMENT In the last few years the role of procurement has changed dramatically. There is a shift from decentralized to centralized models in an effort to tighten controls and standardize processes. Centralized models create negotiating power with vendors. Various organizations are responding to these needs by integrating electronic procurement tools that support various key procurement processes. Here are some key advantages of electronic procurement:

2. OPTIMIZING THE PROCUREMENT PROCESS Automation solutions contribute to processing efficiency by removing paper from the equation. When a buyer orders from an online catalogue, an organization can review and approve the purchase electronically with workflow tools and suppliers are informed electronically.

3. COST REDUCTION Since Purchase-to-Pay automation significantly reduces the amount of paper used it decreases the time it takes to process purchase orders, invoices and payments. This helps organizations save billions of dollars.

4. Purchase to Pay or Procure to Pay automation provides real time, accurate data. This leads to visibility and transparency across all transactions for both buyers and suppliers. Visibility across all transactions facilitates transaction research, discrepancy resolution, and reduces supplier inquiries by providing buyers and suppliers access to the same information. VISIBILITY ACROSS ALL TRANSACTIONS

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