Top 5 Benefits From e-Procurement
Top 5 Benefits From e-Procurement
e-Procurement is a term that is becoming second nature in any sector of business. Many companies are looking to produce a higher return on investment on each project that they begin, and the e-procurement process is helping to make this issue a reality. In many cases, the e-procurement process will work like a reverse auction in the sense that the suppliers will look to develop a proposal for the business to choose. This will allow the company to then decide which proposal looks to have the best overall structure that will fit within the guidelines and budget of the project.
Utilizing a reverse auction will not only save time and money with the company, but will give you more information to make an informative decision on what may be best for the business in the present as well as the near future. When all of this is said and done though, how does the company benefit from a Reverse Auction? What are the main highlights of using e-Procurement for your project? Overall the bottom line is the main part of any transaction that will be on the top of managements mind and e-Procurement can help with that and more.
The Top 5 e-Procurement Benefits are:
- Reduced time between the recognition to the release and receipt of the particular order
- Increased communication within the company as well as between the company and the new supplier
- Reduction in overall errors from previous procurement strategies
- Diminished overhead costs with the inclusion of a new supplier
- Reduced time spent on processing of orders and invoicing, with more time on the overall strategic value of the purchasing activities
All five of these benefits help to increase the bottom line while improving company communication and the quality of the project. With return on investment always on the brain, the amount of time saved by outsourcing this project to a new supplier will increase productivity on additional items to be completed as well. At the end of the day, e-procurement is an ideal way to leverage your business while also completing the project in a timely and cost effective manner.
