E-Procurement – Positive Control of Your Purchasing Now
E-Procurement systems provide new controls to the old purchasing systems
E-Procurement has drastically changed the way companies manage their global purchasing. The procurement environment is now a complex and multidisciplinary marketplace with numerous different business players. e-Procurement successfully incorporates many aspects of the modern electronically-based-and-assisted buying process. Also, it includes various helpful services, such as database hosting, eCatalogue management, tender management, and financial transaction on behalf of a client through a customized and outsourced procurement service.
Purchasing trends in the corporate sector
Externally managed and hosted e-Procurement services are undoubtedly an inevitable part of a growing global trend. Some of these systems specialize in specific industry sectors like oil-and-gas, pharmaceuticals, and mining. On the other side, some e-Procurement service providers offer the full scope of supplier network services to support international procurement transactions. One more exciting trend is where large companies choose to manage their procurement needs in-house. A successful implementation process of a modern purchasing system is one of the most reliable indicators of a company’s world-class purchasing structure.
Trends in the public sector
Some governments in developed and mature economies have already successfully adopted comprehensive e-Procurement solutions. The main reasons for this “enthusiasm” are the improved structure, audit trails, and, most importantly, the full transparency of all transactions. On the other side, governments in the developing and emerging markets are still struggling to ensure stability. That’s the reason they’re often unaware of all benefits that modern systems can provide in return. Nine Benefits to E Procurement systems
According to the findings of the World Bank research, there’s one more reason for governments of developing countries to hesitate when it comes to e-Procurement. These parties are often associated with corruption on a mass scale. It’s more than evident that they’re avoiding implementation and adoption of electronic systems, because of their full and uncompromising transparency. Also, there are some basic requirements, which need to be fulfilled for an e-Procurement system to reach its maximum potential in the public sector. Again, based on the recommendations by the World Bank, these requirements include improvement and expansion of ICT services, guarantees for a secure online working environment, the introduction of standards, and finally, all people involved need to appropriate training.
Electronic Procurement trends in the non-profit sector (NGOs)
There’s a massive potential for the introduction of electronic procurement services in the field reserved for the aid and emergency sector of support, which can benefit immensely from using these systems. modern software solutions give an invaluable opportunity to aid funded buyers in comparing prices quickly, efficiently, and easily. Additionally, they can also review the specifications and delivery of data from suppliers worldwide.
Supplier Information Management trends
Traditionally, purchasing systems were limited in maximizing ROI for their customers due to the buyer organizations’ systems having incomplete in bad vendor records. Recently steps have been made by the leading Vendor Portal providers to provide additional Supplier Information Management tools to their e-Procurement partners. If you have an e-Procurement systm, ask your supplier about their strategy for supplier data cleansing and supplier enrollment.
The E-Purchasing Value Chain
According to Wikipedia, The e-procurement value chain consists of indent management, e-Informing, e-Tendering, e-Auctioning, vendor management, catalog management, Purchase Order Integration, Order Status, Ship Notice, e-invoicing, e-payment, and contract management.
Implementing a modern system can benefit many stakeholders across the enterprise. An organization can experience improved spend visibility, control, and governance and can with matching purchases with purchase orders.
As posted in a recent article, some essential elements of e-procurement systems include
Online catalogs from approved vendors Internal ordering processes Electronic Request for Proposal (e-RFP) process Online auctions (e-auctions) to accumulate bids on providing goods and services for a specific project.