Why invest in E-Procurement Solution? March 21, 2019, 4:28 p.m.

Hidden treasure 2

Working with e-procurement solutions has been made affordable with cloud computing environment. This makes organizations work with most e-procurement solutions without investing in the e-Procurement Software, Servers and IT staff.

1. Quicker RoI

There are two main reasons why every organization shall adopt an eProcurement software. i.e. Time-Savings and Cost-Savings. On one hand, it reduces the time spent on the various transactional activities. While on the other hand, with better negotiation strategies, you will be able to achieve impressive expenditure savings.

When purchasing a product through the e-Procurement solutions, it demonstrates a superior way of negotiating with the suppliers, demanding and comparing the quotations, displaying the product requirements/specifications for them, asking for the technical bid as well as multiple solutions from the supplier etc.

2. Better Compliance

“There is no evidence that you got three quotations before doing the purchase” This a statement that never misses in majority of management letters drawn by external auditors.

Procure-2-Pay softwares also provides a better insight and internal control of every buying decision. It will act as a single window view of all the transactions, decisions, justifications etc.

3. Reduce Maverick Buying

Maverick buying makes it difficult for organizations to keep a track record of all the purchases made. If an organization is using an eProcurement software, it will centralize the requisitioning and procurement of all the materials. The approval process is observed within the system. The system helps control purchases from suppliers that are registered in the organization.

4. Easily Accessible Functions

Using a P2P Software is extremely simple. With a minimal amount of training, anyone can start working on it easily from day one. It automatically prioritizes the Negotiation and Control aspects of the purchase process while making sure that administrative tasks become easier. This will make the procurement procedure in your organization smoother.

5. Supplier Relationship Management

Maintaining a sound relationship with the suppliers is a key to success for many. The source to pay software also possesses communication tools in it. Therefore establishing a communication channel within and out of the organization. This will bring transparency in the communications and you will be able to maintain good relationships with the suppliers.

6. Central Repository of All the Information

The eProcurement software acts as a central repository of all the information of authorized decisions, the status of each transaction, spend analysis, vendor negotiation pattern as well as vendor rating. Due to this, there wouldn't be any need to go through a lot of files just to get the precise data. Everything will be available at a single space with the real-time information.

7. Increase FTE Efficiency

In order to make maximum utilization of the available Human resources, it is necessary for the organizations to increase the FTE (Full-Time Equivalent) efficiency of the employees. A procure to pay software simplifies the tasks such that a single person can carry out the work of three. Thus, resulting in an increase in productivity as well as FTE efficiency.