Procurement Glossary & Terminologies
What is e-Purchasing ?
Electronic procurement, or e-purchasing, is the digital acquisition and sale of goods, services, tools, and labor, as well as fundamental networking and informational technologies. The procurement process comes after the management of sourcing and contracts and just before the administration of supplier relationships, invoices, and payments. These exchanges happen between companies, consumers, governments, and other companies.
Fundamentally, e-purchasing enables chief procurement officers or official procurement departments within firms to create a general overview of policies necessary for acquiring goods and services for said businesses. The ultimate goal of these activities is to get the best price while also providing the most significant value when necessary.
Benefits of E-Purchasing
There are many benefits to shopping online in general. Here are some benefits of switching from a manual to an electronic purchase approach.
- Lower spending
Your company can avoid duplicating expenses, benefit from bulk purchasing, and save money on purchasing paper-based systems and tools if you have an electronic procurement procedure. Your employees can easily create and assess reports using procurement softwares because all of your transactions are digital, guaranteeing that your e-purchasing activities align with public and corporate policy.
- Higher Productivity
E-purchasing is unquestionably more time-efficient than conventional procurement techniques. You can submit reusable tenders because all records are maintained digitally. The paperwork component of procurement is also made simple by templates because they are quicker and simpler to complete.
- A More Fluid Supply Chain
Your clients can benefit from implementing an e-procurement platform because your supply chain procedures are now updated and improved. You can assign real-time data for your enterprise resource planning (ERP) and supply chain management demands because your organization may directly link to external supply chains.
- Rapid transactions
The purpose of e-procurement is to accelerate, streamline, and simplify the purchasing process. In that vein, previously laborious procedures (such as the act of doing transactions) are now easily and quickly managed digitally. Additionally, procurement times have decreased due to the shift to digital engagement between businesses and their suppliers.
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