The digital tool automates the B2B procurement process, from request to payment, and is therefore known also as a “Procure-to-Pay” solution.
By automating operational procurement processes, the e-Procurement solution gives more free time to buyers, so they can focus on what is truly strategic.
Thus, professionals will spend more time on relevant topics, such as negotiations, the development of new partnerships, innovation and sustainability, among others.
With the advance of technology over the years, e-Procurement solutions now control the whole procurement cycle, help in negotiations and allow access to real-time data, for better decisions and transparent transactions.
See below how e-Procurement can impact the procurement sector and what are the key benefits of using this tool.
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How can e-Procurement impact the procurement sector?
For a long time, B2B procurement had been conducted manually, using many spreadsheets, printed materials, little transparency and low control level.
In a fairly recent past, the procurement area’s main task was to support other departments. And the buyers had to fulfill the orders, even at high costs.
But to keep up with market developments and achieve more competitiveness, the department gained prominence gradually, and became one of the most relevant sectors for the results of organizations.
This increase in the importance of that area raised the need, for businesses, to seek technologies, in order to promote automation of operational activities, along with control and management in a single environment.
And more and more companies are now relying on digitization to achieve savings, agility, collaboration and compliance.
7 benefits of e-Procurement for the procurement area
With e-Procurement, you can have better visibility and control of spending in the procurement area, and also have access to data and insights that contribute to financial planning.
The increase in the productivity of buyers, who are then more dedicated to the strategies of that sector, can be also considered an important factor to generate more profits for the business.
Another benefit in terms of savings is the possibility of negotiating in a more smart way and achieving more savings, with an automated comparison of your suppliers’ proposals, analyses of purchase history, closure of new contracts, and quotations with new supply sources, among others.
2. Process optimization
The e-Procurement solution allows you to streamline all procurement-related internal and external processes, in an efficient and safe way.
The procurement cycle is automated through digitization, which reduces lead time in procurement (overall time) and decreases the chances of errors, delays and rework.
The tool assumes the task of automating the entire procurement cycle, from request to order, thus enabling real-time control and monitoring of full processes.
3. Secure communication
In procurement’s daily chores, there’s an ongoing exchange of data between buyers and suppliers, for instance, when negotiating and closing an order.
To streamline this process, the e-Procurement solution consolidates communication and records all interactions with suppliers, thus increasing transparency and compliance in procurement.
The use of this technology not only makes communication easier, but also renders transactions with partners much more secure, allowing processes to be traceable and auditable.
4. Greater efficiency
Quotations sent by e-mail are less efficient than those conducted in an e-Procurement solution, mainly because they involve several steps and approvers to complete every purchase.
There are also situations in which purchase orders aren’t placed on time, and then shipping and delivery dates are delayed, impacting even the end consumer.
In such cases, the e-Procurement solution can be crucial to assure a satisfactory development of the company’s logistics processes and, consequently, reflect on the satisfaction of its customers.
5. Better prices
With e-Procurement, businesses can increase their chances of achieving more competitive prices, as the platform allows them to negotiate with several suppliers at the same time.
Additionally, you can include, in the quotation processes, suppliers that are part of Marketplaces – such as Mercado Eletrônico, which enables transactions with more than 1 million companies.
All proposals are delivered in a single environment, and can be viewed on a comparative map, which automatically compares all received quotations and even suggests the best offer at once, thus facilitating the decision-making process.
6. Risk reduction
Creating and sustaining alliances with trusted suppliers is synonymous with competitive edge. In fact, ESG (environmental, social and governance) is now an indispensable guideline in procurement.
With the e-Procurement solution, integrated with SRM (Supplier Relationship Management), you can analyze whether suppliers meet legal and technical requirements, as demanded by regulations and internal standards.
This procedure minimizes the risks associated with the supply chain and its negative impacts on the business, related mainly to reputation and brand image.
7. More strategic decisions
The procurement area can actually generate real results for businesses, but you must work with well-defined KPIs – such as delivery level, lead time, price evolution and savings, among others.
Through e-Procurement, procurement professionals can track the metrics and can, for instance, evaluate supplier performance, team productivity, achieved savings, etc.
Now that you know some benefits of e-Procurement for strategic procurement management, request a free demo of our platform for your company.
Request here the contact of one of our experts in procurement solutions.
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