Long gone are the days when organization used to accumulate a lot of paperwork for the process of procurement. Using punch out ecommerce services is a part of e-procurement. With the development of technology, organizations are now shifting to e-procurement for obvious reasons.
Business cannot continue doing procurement manually while other functions like sales have been digitized. It is only logical to adopt e-procurement to fit other functions of the businesses like the e-commerce. This is not the only reason business is now considering e-procurement.
Benefits of e-procurement
Cost saving is one of the main reason businesses are choosing e-procurement. The traditional method of doing procurement consumes a lot of unnecessary costs. This is mainly as far as paperwork is concerned.
The manual way of procuring incurs a cost at each stage, handling a lot of paperwork, paying postal charges are not forgetting the time incurred when doing things manually. The only way to save cost and money is to adopt, an electronic method of doing things.
Transparency of the process
Electronic procurement equals transparency in the process of procurement. When procurement is done electronically, all stages of the process are visible to all the parties and stakeholders involved. This is because anyone who is concerned gets information in real time. There are no delays or doing a thing in the back door. For instance, you can know see everyone who applied for the tender, the pre-qualification processes and all the stages involved. This reduces non-ethical practices in the process.
Bringing efficiency in the process
Everyone knows that paperwork can bring a lot of inefficiencies in any particular process. When paper works becomes too, much it becomes very difficult to handle, and this is what brings errors in the process. Using electronic procurement, it becomes easy to make the processes efficient and reduce the number of errors that are likely to occur. For instance, y=using e-procurement, you can easily compile reports without the worry of making mistakes and errors during the process. This is an easier option compared to paperwork.
When doing procurement electronically, the speed of transaction is increased for obvious reasons. You no longer have to wait for days for the supplier to mail you the invoices and other paperwork. Everything is done in real time and the amount of time that would have been wasted in waiting for paperwork confirmation is eliminated. This ensures that there is less time in every stage of the procurement process.