When you looking for a reduction in procurement time, errors, costs, and paperwork, a switch to e-procurement will be the best decision to take.
The definition of e-Procurement
According to The Chartered Institute of Purchasing and Supply (CIPS), e-procurement is:
“The combined use of electronic information and communications technology to enhance the links between customer and supplier, and with other value chain partners, and thereby to improve external and internal processes. e- Procurement is a key component of the B2B e-commerce”
Put differently, e-procurement improves both customer and supplier relationships, and strengthens their internal business processes, and could also offer significant cost savings, and more profit.
The e-procurement value chain consists of indent management, e-Informing, e-Tendering, e-Auctioning, vendor management, catalogue management, Purchase Order Integration, Order Status, Ship Notice, e-invoicing, e-payment, and contract management.
But, When e-procurement has started? Where did it come from? Are there any big companies using it?
The history of e-Procurement and When it began?
Based on the history of technology, we discover that the origins of e-procurement “B2B e-commerce” began in 1980, with the development of electronic data interchange (EDI), then the idea has improved and become somehow concrete in 1990 when software companies began to develop online catalogues specifically for use by vendors.
Then in the year 2000, IBM the American multinational technology company, was the first to use e-Procurement, as back then, the company launched its Replenishment Management System and Method, the system was created by the Mexican engineer Daniel Delfín who was the procurement director at IBM’s largest production plant, and Alberto Wario, an IT programmer.
The system was designed to solve IBM’s complex procurement process for the plant in Guadalajara, Mexico, the largest IBM laptop producing plant in the World back then, with a production value of 1.6 billion dollars a year.
Three years after the system was implemented, the production of the plant grew to 3.6 billion dollars, after which, the company used the system in Germany, and later sold using licenses to other companies around the World.
Why e-Procurement is a revolutionary solution for the B2B industry?
"Business-to-Business e-commerce is a $900 billion market in the United States alone(at 2018)."
The united states and Europe have adapted to e-Procurement since its early stages as they could see the great value from such technology, and that’s what already proved; B2B online sales will reach as much as $1.1 trillion in about two years, says Forrester Research Inc. (at 2018), With e-commerce as a growing sales channel for B2B companies.
It’s growing from day to day and that’s not by accident, as you know businesses don’t operate like that, especially when we talk about the biggest companies in USA or Europe, But they adopted to the E-Procurement technology because of its great value
How will e-Procurement help business buyers?
It will help Overcome Suppliers Problems Dramatically
You may not find the perfect supplier with the quality you desire, but when using e-Procurement platform with a B2B marketplace, you can reach hundreds of suppliers locally and globally and send RFX as much as you need till finding your perfect supplier, all of this without moving out of your chair.
e-Procurement saves you money by preventing duplicate spending, leveraging volume buying, and saving you costs associated with paper-based systems (for example, the cost of stamps to mail your paperwork).
e-Procurement makes it easier for every department to conform to company procurement standards without any wasting. In addition to that, all the procurement documents will be online and thus easier to check for errors. Along with this, past orders are more easily referenced, meaning there’s a greater chance that your company can compare orders to ensure new ones are correct.
Once you’ve learned the system, e-procurement is less time-consuming than traditional procurement. Having your records stored electronically makes it easier to submit reusable tenders. Meanwhile, use of templates means paperwork can be filled out more quickly.
Doing more in less time
e-Procurement is both time-saving and efficient. As the electronic handling of tasks supports and simplifies the purchasing process, transaction speed is increased. Also, because of e-enabled relationships with suppliers, procurement cycle times speed up. The e-procurement process eliminates unnecessary activities, allowing you to focus on more valuable tasks.
conducting your procurement online makes it easier to write and analyze reports and gives you a complete Knowledge of your purchasing process; e- procurement software will give you the visibility you want into your spending. The data e-procurement software gives you is critical.
How will e-Procurement help business sellers?
It will help to Increase B2B Sales dramatically
“e-Procurement is the fastest growing B2B sales channel, increasing 37% annually”. e-Procurement platforms and B2B Marketplaces are a game-changer for B2B suppliers as it helps them increase their sales massively by connecting them to buyers effortlessly.
Increase Sales Globally, Not just locally
There’re some global e-Procurement Platforms and B2B Marketplaces which will allow you to increase your sales and grow globally, not just locally.
Close Deals Quickly
A great feature about e-Procurement Platforms and B2B Marketplaces is that they super super-save time on each stage, makes communication faster, agreement faster, and shaking-hands faster.
The Disadvantages of e-Procurement & How to Avoid them?
With anything significant in the world must there be some risks, and of course with the great opportunities the E-Procurement provide, there’re some risks involved, but we’re gonna show you how to avoid it.
The Security Risk
By doing business online, the security of your transactions and business information may be in danger.
The Increase Costs Risk
The great opportunities come with e-Procurement are not for free in most cases.
No doubt, these things must be taken into consideration, as the safety of your company’s information and transactions is very important, and also maybe you are not ready to afford any additional cost now to subscribe to a B2B marketplace or an e-Procurement software.
How to avoid those RISKS?
On Word "e-Procure"
The first Blockchain B2B global platform in the world incorporating an integrated B2B marketplace and advanced cloud system for procurement management.
What are e-Procure Features?
B2B Marketplace + Advanced E-Procurement Management System + Freelance Marketplace For Business Professionals.
Subscription to e-Procure is completely free.
e-Procure is built with Blockchain Technology that provides complete encryption for your company information and transactions and ensures that nobody can ever access your data without your permission.
e-Procure has everything you will need to communicate with the buyer or supplier clearly, close the deal and sign contracts.
Advanced order Management & Tracking system.
Advanced & Integrated B2B payment system.
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Want to manage your procurement online, Sign-up to e-Procure for free here Or Learn more
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Want to increase your B2B Sales online, Sign-up to e-Procure for free here Or Learn more