8 Benefits of Establishing an E-Procurement Process
If your procurement process isn’t automated, you’re already behind. When automation permeates your procurement process, it offers huge benefits to your organization’s bottom line including spend optimization, process transparency, and better supplier relationships.
What’s more? These are not the only benefits of an e-procurement process. With the right procurement solution, organizations can easily reap indispensable benefits. A better understanding of these benefits will help businesses realize that e-procurement is no longer a competitive advantage but a strategic necessity.
What is an e-Procurement process?
An e-procurement process improves the efficiency of the procure-to-pay cycle by automating repetitive tasks and bridging process gaps. The end-to-end procurement process cycle from needs identification to invoice approval and payment processing is automated. An automated procurement process will enhance efficiency, solve inherent challenges, and deliver savings.
8 benefits of an e-Procurement process
Here’s a list of eight game-changing benefits that organizations can attain by implementing an e-procurement process.
1. It won’t break the bank
Most e-procurement software solutions are offered on a pay-as-you-use subscription model. What’s even better is that there is no implementation fee or upgrade costs involved. E-procurement tools offer an array of dedicated features to manage the end-to-end procurement process similar to those offered by a full-fledged ERP system, for the fraction of the cost.
2. It eliminates your stuffed filing cabinets
Manual procurement processes often result in a whirlwind of paperwork and overflowing spreadsheets. Trying to track an expense is similar to looking for a needle in a haystack. Rather than digging through the filing cabinet for hours, organizations can retrieve and access purchase records at a glance with an e-procurement software solution.
3. It will never let you miss a due date ever again
With an e-procurement process by your side, you don’t have to worry about missing your deadlines and due dates ever. Purchase contract about to expire? You’ll get timely reminders to help you renew or end the supplier relationship. Year-end financials? All stakeholders get automated notifications with a list of tasks that must be completed to meet the deadline.
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4. It makes your procurement process transparent
Is dark purchasing running rampant within your organization? An e-procurement process can cut costs and stop maverick spend from pilfering your organization’s bottom line. Audit trails and 360-visibility will help organizations ensure that the approved budget is spent only on relevant and necessary products/services. Essentially, it helps you measure your procurement KPIs.
5. It improves employee productivity
The old proverb ‘time is money’ stands true even today. As the market conditions continue to evolve, in order to accelerate the procurement process cycle, the procurement team needs to spend less time executing the process and more time on value-added activities. An e-procurement process helps employees stay productive by:
- Keeping decision makers on track using instant notifications
- Storing all relevant purchasing data in a centralized location
- Automating tedious tasks like three-way matching
- Offering pre-defined apps and ready-to-use form templates
An e-procurement process doesn’t just allow procurement professionals to perform their tasks faster, but also help them keep it structured and accurate throughout.
6. It ensures policy and regulatory compliance
Organizations that handle procurement activities manually pose a higher risk of non-compliance as it is hard to perform due diligence on each stage of the procurement cycle. Whereas an automated e-procurement process with rule-based workflows will prevent erroneous and incomplete requests eliminating the chance for compliance risks.
7. It plays nice with your other software solutions
Only a handful of organizations use a standalone application to take care of the end-to-end procurement cycle. Even then, they had to manually key in the purchasing data into their ERP or accounting software. An ideal procurement system will stitch all standalone modules together without any hiccups and enable seamless data exchange through APIs and other means.
8. It offers actionable insights at a glance
Most procurement leaders have to rifle through stacks of procurement documents to get an idea of the company’s purchasing trend. On the other hand, e-procurement software offers an array of readily available reporting templates allowing procurement leaders to pick what details they want to include on the report and create it in a few clicks.
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Why Kissflow is the best eProcurement choice
Kissflow is an end-to-end procurement system. It covers all processes within the procure-to-pay cycle. It extracts purchase order details easily from approved purchase requisitions and sends it to the approval loop without any human intervention.
You can integrate this procurement software effortlessly with any other finance or ERP tools you are already using. Since your purchase orders are stored on the cloud, you won’t lose sleep worrying about security.
Using Kissflow Procurement Cloud, organizations can streamline their procurement process, improve the overall efficiency, bring in transparency, and enhance purchasing needs at an affordable cost. It helps procurement leaders align procurement processes with their organization’s overall mission and goals.
Streamline procurement with Kissflow Procurement Cloud
Small and medium businesses can leverage the power of an e-procurement process to expand their procurement activities rapidly while keeping down the costs and risks to a minimum.
Take a look at Kissflow Procurement Cloud–you will see how easy it is to embrace eProcurement without transforming your entire IT setup.