What Exactly Is eProcurement?
What Exactly Is eProcurement?
If you have seen any of our other blogs, then you have definitely noticed that we reference the terms eSourcing, eProcurement, RFX, Bid Management, Spend Management and of course eSourcing Tools all of the time. Today we are going to focus on what exactly eProcurement is and how it can benefit your business substantially.
In laments terms, eProcurement is just a term that is used in the procurement industry to describe the way that a business method is conducted electronically. You will notice that the e in front of Procurement indicates that this is an electronic transaction. During any stage of the process, your business could and more than likely will be using procurement. From the point that the sale goes through your business, to the time that the customer pays a particular invoice, procurement is occurring.
As many businesses are going global, it is no wonder that eProcurement has taken off the way that it has. Businesses can cut out a good portion of their overhead cost and reach a clientele that was almost unfathomable a little over a decade and a half ago. In addition to a business being able to reach new customers worldwide, customers are using this to their advantage as they can now shop for proposals without leaving the comfort of their home.
The ProRFx system works well with businesses looking to receive proposals from particular companies that can service their needs. In what can be received as a semi reverse auction, our clients are using the ProRFx system to find the best company to produce the highest quality of service for the best price. The best way to describe the bid management system is by thinking of the bidding king of the internet; eBay.
Much like eBay, ProRFx has a seller and a bidder. In this case the seller puts out a list of the project that they are looking to complete and leave it up to the bidder to place a “bid” or proposal on how they will complete the project. Just like in eProcurement, the entire process is done online through the eSourcing tool in order to streamline the process and provide ample amounts of details for both clients during the entire auction. With limited overhead, eProcurement is just the simple answer to reaching out to a new client base without having to increase your spending.
At the end of the day, really anything can be bought and sold from eProcurement. Long gone are the days in which people bought and sold in person only. Now with the Internet, Skype, GoToMeeting and more, business is going global and if you do not jump on the bandwagon you will miss out to some one that did. eProcurement is the now and future and working with the ProRFx system for your business will help you to outsource your project for the highest ROI.
