In this day and age, companies are exploring various ways to optimise their supply chain management and actualise cost saving in the management process. One of the ways this is done is by incorporating e-Procurement solutions to ensure a seamless workflow.
e-Procurement is software-based automation that automates procurement and user processes to allow for simplified purchases. e-Procurement automation covers the whole procurement process of:
1. When a decision is made to make a purchase
2. Selecting goods/services through a catalogue
3. Approval of the order
4. Placement of the order
5. Raising of the purchase order
6. Receiving the order into the supplier’s system
7. Invoicing and delivery/receipt of the goods or services
Here are some ways of how e-Procurement helps improve supply chain.
1. Enhanced Supplier Relations
Supplier relationships are highly important in driving a business towards a positive trajectory. The supplier relationship is collaborative as much as it is transactional. A collaborative relationship between buyers and suppliers is difficult to actualize when the flow of information is limited.
The e-Procurement process plays a huge role in ensuring that there is a free and seamless flow of information between suppliers and buyers. With this platform, there is a cost-effective transaction between the two, which leads to cost and transactional benefits.
2. Transparent Supply Chain
In every business, supply chain management is pivotal. Not many companies tend to gain a deep insight into their supply chain. This is one of the reasons that companies are rapidly adopting the eprocurement electronic platform. For them to effectively manage their business, they need increased visibility of their supply chain.
e-Procurement platforms allow companies to track their spendings, consolidate procurement, and supply chain for data and enhanced visibility. This will go a long way in arming them with all the vital information to help them make a better decision.
3. Minimised Unjustified Spending
Expenses incurred outside the mapped out guidelines of a company create a number of issues. It slows the financial growth of the organisation, and if not checked on time, may lead to its grounding. With no proper tracking, a company may pay for more products than they need.
The problem here is that the documents that would have aided the organisation in checking their affairs are spread across among departments and individuals. With e-Procurement solutions, the sources are made verifiable and accountable, making unjustified spending easily detectable and eliminated to promote business growth.
4. Minimised Procurement Errors
Especially when the processing of orders is done manually, human error is one of the leading causes of inflated expenditure in the provider process. Errors that involve procurement data, invoices and the order itself can lead to misunderstandings between buyers and sellers, which can go on to negatively impact the company’s supply chain and growth.
The e-Procurement platform automates the whole procurement process and reduces any errors that could create a manual procurement data error. It makes monitoring the ordering and supply system easy and efficient.
5. Strengthen Supplier Base
The consolidation of the supplier base is the goal of any procurement department. When a company is starting out, it keeps a complex array list of supplier relationships. Without deep insight into procurement, it is difficult to adjust without causing huge disruptions.
Using an e-Procurement platform is a great way to enhance the supplier-buyer relationship. e-Procurement ensures that an ample amount of relevant data is provided to ensure that well-informed decisions are made to keep the business running effectively.
6. Save Time
e-Procurement makes financial controls easier and better. It eliminates paperwork, which results in time and money-saving. When the procurement is manually processed, documents are waited for to be lowered through mails. Different time zones can be an obstacle in the timely delivery of paperwork.
Costs related to inventory maintenance are reduced and the delivery time of orders is shortened too, without compromising accuracy. It makes the procurement department and staff able to track orders, audit and ensure security in a short amount of time.
An e-Procurement system such as ADAM is an effective solution to supply chain management. It is essential for gaining better financial control, supply chain data as well as creating a great collaborative relationship with suppliers. For more information about e-Procurement, feel free to get in touch with us.