8Manage:What are the benefits of e-procurement system?

2020-03-18

With the advancement in technology and new supplier management, tendering and procurement models, moving your procurement processes online is no longer just for efficiency and cost-saving, but also for control and anti-corruption reasons.

Many purchasing executives worry that supplier management, tendering and procurement processes are too complicated and moving them online would open their organization up to deep learning curves, security concerns and control issues.

We know you’ve probably heard pitches about the benefits of making all your processes electronic. But there are some very important benefits from 8Manage procurement cloud or e-procurement that you may not have considered.

When you factor in the reduction in procurement errors, costs, and paperwork, a switch to e-procurement might just have your employees and your managers appreciate your judgment and leadership.

Top benefits of moving supplier management, tendering and procurement processes online include:

1. Reduced costs – Online procurement allows you better control on unnecessary spending (e.g., detecting and eliminating duplicated buying), better leveraging volume buying (e.g., automatic merge of purchase requisitions from different divisions, offices or stores to create bigger negotiation power) and saving  costs associated with paper-based systems (e.g., saving of requisition-to-order cost).

2. Transparent spending – Online procurement makes it easier to write and analyze reports on your procurement systems, meaning you can ensure that your procurement procedures conform to your policies.

3. Increased productivity -- Once people have learned the system, online procurement is less labor- intensive and time-consuming than paper-based system. Having your records stored online makes it easier to access and submit reusable tenders.  

4. Improve cycle time – 8Manage Online procurement is both time-saving and efficient. The use of templates and straight-thru-processing means paperwork can be filled out more quickly and communication and confirmation with suppliers can be done in real-time.  Many organizations cut their requisition-to-order cycle time by as much as 40% after they moved their processes online.

5. Standardized buying -- When you have various departments making procurement decisions, there can be differences in what and how they purchase. Conducting purchasing online makes it easier for every department to conform to company procurement standards.

6. Reduced errors -- Paperwork is streamlined online and thus easier to check for errors.  Also, past requisitions, tenders, quotations, orders, delivery slips and invoices can be easily referenced and historical prices can be automatically compared to by the system.

7. Keeping people honest with audit trail and fraud detection – Online procurement can maintain un-erasable audit trail and detect potential frauds such as corrupt influence, conspiracy and manipulation by bidders.

8Manage e-procurement system is a cloud-based software, and it is the most advanced e-Procurement & e-Tendering system on the market. Lets get started!