:quality(80))
Electronic procurement (more commonly known as e-procurement or procure-to-pay) is becoming a significant part of modern business practices, and its importance is only increasing. In fact, Verified Market Research projects the global procurement software market will be worth €8.6 billion globally by 2028. Here, we touch upon e-procurement’s key benefits and why it’s becoming so vital for organisations to adopt the technology.
Efficiency and cost savings
E-procurement systems create enhanced efficiency and cost savings for businesses of all sizes. Lengthy manual tasks become automated, thus improving how a company operates.
One persistent challenge can be the careful process of document-matching. For example, order confirmations received from suppliers after sending out purchase orders. This process, although essential, can be time-consuming. While most of the time your documents may match, there can be discrepancies which require quick action. This typically involves contacting the supplier for a resolution.
Confirmation-checking processes can divert resources from other important tasks. Having a digital, automated solution in place could automate this confirmation process and alert businesses when intervention is needed. Such a solution streamlines procurement and addresses a long-standing challenge.
Increased transparency and accountability
All parties can benefit from increased transparency and accountability thanks to e-procurement.
Real-time access to procurement data means stakeholders can view the entire procurement lifecycle. Similarly, many leading e-procurement platforms include features that allow businesses to automate compliance checks. Companies therefore have the peace of mind that they’re remaining compliant with the latest regulations and, with systems providing visibility into the procurement process, it enables better tracking and auditing of transactions.
Furthermore, enhanced tracking and monitoring of supplier performance promotes accountability and enables companies to spot under-performance and address problems quicker.
Improved supplier relationship management
E-procurement can improve supplier relationships. Communications are simplified and the automation of previously manual tasks gives Purchase Managers more time to focus on building and nurturing relationships.
E-procurement platforms facilitate interactions between preferred suppliers and customers through bids, purchase orders, and invoices. Additionally, by connecting to a centralised supplier database businesses can be more efficient than ever before.
Through Banqup Group’s procure-to-pay solution, one consistent, automated procure-to-pay workflow can be created, no matter the channel, protocol or technology of the supplier.
The benefits of such can only be realised when both a business and its suppliers jointly adopt technologies such as e-invoicing, in order to modernise their processes. To learn more, read our blog ‘How to convince your suppliers to adopt e-invoicing’.
Data-driven decision making
Thanks to the transparency that modern solutions create, the procurement process can be analysed through data. This may include a company’s spending patterns or the quality of goods or services they receive from any given supplier.
Supplier performance can be tracked as part of this analysis, and this allows companies to engage in more productive negotiations overall with their suppliers to make better-informed decisions.
Furthermore, access to comprehensive procurement analytics and reporting results in spotting cost-saving opportunities more frequently.
The data available thanks to e-procurement systems can make a company more streamlined and profitable in their operations.
Our solutions
Explore Banqup Group’s procure-to-pay offering and benefit from a streamlined, automated solution.
Create one consistent digital supply chain process which enables you to keep your existing ERP system or accounting software, and benefit from one seamless collaborative workflow.