E-Procurement: What About It?

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The way companies deal with business procurement is shifting with opportunities made possible by technology. As a result of that, more and more companies are beginning to utilise e-procurement  softwares. What is e-procurement you might ask?

E-procurement is exactly that – procurement – but in electronic form. Basically, it is an improved way of conducting procurement activities thanks to technological advances. So, is it bringing the winds of change or has it been around for a while?

Well, e-procurement got a head start when electronic data interchange (EDI) was introduced in the 1980s. It may not be newsworthy in this day and age, but it was definitely a terrific innovation at the time. Customers and suppliers were able to ditch the telephone and rely on EDI to communicate orders and send invoices via call-forward networks.

During the 1990s, the field of technology experienced a rapid boom, and software companies knew there was huge potential in electronic catalogues for the corporate market. So, they integrated and streamlined their services into a coherent software that does a few things: order management, miscellaneous expenses, and numerous catalogues.

Now let’s have a look at the benefits of e-procurement. You will expedite the process of exchanging documents and information because they are automated, minimising the hassle undertaken unlike that of traditional procurement.

There is the wonderful feature of requesting for quotations electronically and being able to bid in real-time auctions online. You also get quick access to your suppliers’ inventories, so you won’t have to wait on your suppliers to get back to you.

Another fantastic thing about e-procurement is that it allows you to track your procurement spending and whether it was done in accordance to company protocol. It will promote overall transparency and accountability.

If you’re looking for an e-procurement software for your company, do consider a few things. You would have to determine the purchase process, relevant computer systems, and most importantly, security measures required before making your decision.

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