Procurement is already an essential piece of your business puzzle, but it’s also a costly one. Perhaps you already think you’re getting a good amount of value for the money that you put into this process, but chances are you aren’t really thinking about the entire picture and everything that you’re spending money on that doesn’t need to be spent. Your purchasing is actually costing you more money than the cost of the actual product you buy. Cutting costs is an excellent method of increasing revenue and profits, which is why these cost effective strategies, using an e-procurement process are going to improve your bottom line.
Cut Down Paper Waste
When everything is done online, from the initial product browsing to requisition requests and capital equipment purchasing to approvals, verifications and reviews, you’re cutting down on the amount of paper that you need in the business. Typically you need paper copies of the information on everything that’s available for purchase. You also need forms to fill out in order to request the purchase. Then that form needs to be copied and sent to several different people in order to get authorization to make the purchase. Those copies are then sent back to you to authorize the actual procurement. Now, you need more forms in order to actually make the order, with confirmation and invoicing coming through on even more forms.
With an e-procurement process you’re cutting down on those purchasing related papers. Everything is done directly online and then you send an electronic document to each person who needs to approve the process. They provide an electronic signature to one single document, that’s co-managed by everyone who needs to be involved. You can then authorize the procurement request and place the purchasing order just like that. No paper copies of any documents are even needed to complete the e-procurement process.
Cut Down on Time
Time is your most valuable resource in any business. Because everything about the e-procurement process is done electronically, the purchasing, the requisition and more, there is no need to spend as much time on each individual item that you need. Multiple requests can be handled through the e-procurement process at the same time, and all those involved can access the document at the same time as well, reducing the need for sending documents back and forth between different offices or individuals. Purchasing gets much simpler, and you spend less time attempting to track down everyone you need for the authorization.
There is also less need for duplicate work, because everyone within the company will be taking care of the e-procurement process in the exact same manner. There is no more of X department handling purchasing one way and Y department handling purchasing a different way. Everyone takes care of things in one, company-wide manner, which conforms with standard policy. This means no one needs to go back over requests or procurement processes and change how it’s formatted or how it’s recorded. There will be fewer errors and far fewer mistakes of any other kind.
The E-Procurement Process for Your Bottom Line
The key is that an e-procurement process is going to be a benefit to your bottom line. By decreasing the amount of work that needs to be done, streamlining every aspect of the purchasing and procurement process for everyone involved, and cutting down on waste, it’s going to save money all around. Everyone involved in the process is able to see what is happening and because the system is already set up, they are able to quickly and easily change their current methods to the standardized method of e-procurement process you have created and create a purchasing process that makes sense for your business model.