5 Ways E-procurement Systems Can Help Your Business

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Before we even get started on this article, is the term e-procurement already sending shivers down your spine? Well, most people are afraid when they see this term as well. But we feel that it’s because not many organisations or people actually truly understand what e-procurement really is and how to use it to your advantage.

In this article, the team at ThunderQuote is going to try to break down what e-procurement really is and why we feel like it’s important to implement it to your growing business because it is a tool that would help you expand.

As the economy grows rapidly, everything else expands just as fast as well. Businesses would want to sustain their reach in the industry and this is one of the best ways to do it. Since e-procurement is still in its budding stages, most people still don’t understand or have fully accepted the benefits of e-procurement. Some of the few are, you reduce human errors in regular procurement, the process is much faster and the costs are reduced as well. You will have your boss and your reputation thanking you because you’re making the switch.

What is E-Procurement?

It is more commonly known as electronic procurement or supplier exchange. It is the B2B, B2C or business-to-government purchase and sales of supplies, services and work that can be done through the internet.

Businessmen are taking their time to slowly understand the ropes of e-procurement and it is slowly being implemented around the world. So the big question is, is e-procurement really worth it for your expanding business? What are the benefits that you can garner from switching to this system? Well, our team at ThunderQuote are trying to work that out for you today :

Benefit #1 : Huge Reduction in Cost

This was mentioned earlier but it’s important to expand on it. E-procurement saves you money because it reduces the possibility of human error. This may include duplicate spending, and it also removes the need to pay for stamp duty when you have to sign paperwork. Everyone knows that the minute you digitise everything, the costs for running that particular section of business is also reduced. It also happens here as well.

Benefit #2 : Reduced Transaction Time

Since most of the work you will be doing is online, the transaction time will be reduced significantly. As a manager of the e-procurement system, having your work be online means that you would not need to even follow office hours. This is because the offices you are working with might be in a different timezone allowing you to take advantage of it to reduce your transaction time even more again. These processes might not even need human intervention. This allows you to be more productive with your extra time and the downstream process of the entire transaction isn’t limited by time constraints. More time for you means more work that can be done with the extra time. It’s a win-win for everyone!

 

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Benefit #3 : Transparent Spending

With everything being online and also all the information being stored online, it makes for a much more transparent transaction. Electronically conducting your system makes it easier for you to tweak your spending and figuring out the best way to handle your inflow and outflow of cash. You can also ensure that the procurement procedures adhere to your company policies as well. There is no way for anyone to hide anything in the process.

The advantages also extend to the fact that you can ensure the compliance with new and existing customers as well. When online you are able to see almost everything and you can track all the transactions so no hanky panky can be involved.

Benefit #4 : Electronic Catalogues

Soon, something as tedious as procurement can become as easy as browsing through an app to buy next week’s groceries. Since everything can be done on the web, there is the existence of electronic catalogues. Gone are the days when you have to call the company, wait for their representative to come meet you to pass you the catalogue and there ensues a non-stop back and forth to get the products or services you need. Now it’s extremely easy to pinpoint exactly what you want. The prices are all put in the same catalogue so there is no waste of time. You don’t need to call or email anyone until you have picked the exact product that you want.

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Benefit #5 : Bigger Selection Spread

With everything being based online, it’s easier for you to look for suppliers all across the world. It is also easier for them to supply for customers across continents. The time spent contacting each other is extremely short and it’s easy to just say exactly what you want and have it shipped to you by the weekend. In addition to that, you might find suppliers that give you better quality services for a lot cheaper. Sometimes sourcing services nearer to you might cost more money because all the transactions are being made in the same currency. If you spread your wings and find another company across the pond with a lower currency rate than yours, then you will be saving thousands of dollars. This on top of the fact that you now have a much larger pool of services that you can choose from.

E-procurement has a lot more benefits to it but we have decided to keep it short and sweet this time. But, based on these benefits, we think that it is extremely important to implement an e-procurement system because it helps with so many elements of the company. All these benefits will add up and it will make the running process of your company a whole lot smoother and much more streamlined. It pays for companies to invest in an e-procurement system. It will increase productivity in the future. Investing in one is a good pay-off later on.

 

ThunderQuote is the most comprehensive business services portal in Singapore, Australia and ASEAN , where hundreds of thousands of dollars of procurement contracts are sourced every month by major companies like Singapore Press Holdings, National Trade Union Congress and more.

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