What Is e-Procurement?

The extreme search for efficiency has led to the digitalization in all means. Where, technology has significantly changed how we communicate in our daily lives. The advancement of technology has also led to the rise of e-procurement. 

Communication in e-Procurement

When communication appears in e-Procurement, it refers to the sharing of data between customers and suppliers, not social interactions.

How e-Procurement can strengthen customer-supplier relationship

Firstly, getting a better understanding of the definition can help grasp the overall concept. e-Procurement can be defined as the joined use of electronic information and communications technology to boost the connection between customers and suppliers and other value chain partners. Doing so allows the improvement of better internal and external processes. In fact, it is seen as the key aspect in many e-business and e-commerce sectors. 

In other words, e-Procurement aids customers in making the purchasing process smoother which leads to a better customer-supplier relationship

There are many benefits in implementing an e-Procurement system, through all levels of the organization.

e-Procurement has benefits such as:

Electronic PO’s – This is related to the automatic processing and auctioning of orders which in turn boosts the speed and secures reliability in doing at a lower cost. 

Cost reduction – Implementing e-Procurement can save a company a lot of cost, especially in terms of avoiding double payments/spending and maintain the right of volume when buying. Also when large organisations order in bulk for their multiple branches they will be able to get better prices than ordering for each individual branch.

Transparency in buying and spending – e-Procurement enables organizations to standardize their orders, especially when multiple departments are making procurement decisions. This standardization reduces confusion over purchased items and order origins.

Hence, in cases like these e-Procurement makes it convenient for each department to comply with the company’s procurement standards. Spending becomes more transparent and allows you to know what you’re actually spending on. The analytics function in allows the organization to have a better track record and transparency on their spend. This in future can allow them to manage their funds and spend in an organized manner.

Suppliers – Connect to external supply chains and aids in supply management. This helps improve supply chain operations, this can lead to a mutual benefit for all  parties using software. 

Lower margin of errors – The electronic format of all paperwork reduces errors by allowing for thorough checks. It also provides a better record of previous orders, which can serve as a reference to ensure accurate placement of new orders.

But out of everything, the most important task is to pick the right software that provides the best services. Different procurement software targets different organizational sizes. Organizations must carefully select software that aligns with their objectives.

ADAM simplifies and digitizes your procurement processes. It is a catalogue-based procurement system with multi-user and multi-branch capabilities. Additionally, ADAM provides analytics of company orders, spend, and consumption. Get in touch today or by simply emailing hello@adam-procure.com to get started.

By helping businesses to innovate the way they procure more efficiently, we’re helping businesses put back time and money into what truly matters for their business.