What Is eProcurement?

What Is eProcurement

Electronic procurement is a new procurement mode, which reduces the procurement cost from the source. Different from the traditional procurement model, enterprises can purchase online through Internet services, which greatly simplifies the procurement process. With the continuous development of the times, electronic procurement is becoming the choice of most buyers and suppliers.

What is eProcurement?

What is eProcurement

The full name of E-procurement is Electronic procurement,it can also be called supplier exchange, which refers to the business-to-business through the web interface or other network system to simplify the workflow, the sale, and purchase of supplies and other services. The goal of e-sourcing is business-to-business interaction, using digital solutions to regulate purchases from one another, thereby reducing costs and improving procurement efficiency.

The benefits of e-procurement are as follows:

  • Automated processes

Implementing e-procurement automates tedious tasks such as supplier evaluation and selection, purchase order creation, price negotiation with suppliers, and other activities that are normally handled automatically. So as to reduce the probability of error, save time, and improve the speed of business.

  • Process improvement

By automating services, e-procurement enables self-service for users and saves staff time. In addition, a well-developed e-procurement page can also aggregate order data and improve the process for employees to process orders.

  • Efficiency improvement

Efficiency improvement is an ideal goal for all purchasing departments. E-procurement software can reduce the probability of order error, greatly reduce the associated costs, and help to improve the efficiency of the ideal into reality.

What is eProcurement

Procurement Process:5 Steps Of eProcurement You Must Follow

If you choose e-procurement, you need to follow these five steps:

1. Information transmission

This is a phase shared with traditional procurement, which enables the exchange of information between the purchaser and the supplier, enabling both parties to optimize the procurement process.

2. The procurement

At this stage, the purchaser is required to confirm the qualification of all potential suppliers in advance, screen these suppliers according to the procurement requirements of the corresponding goods to be purchased, they make this decision according to the specified procurement requirements, and make a shortlist.

3. The tender

This stage specifies when the purchaser should request information and quotations from the candidate suppliers. This stage helps the purchaser to understand and evaluate the suppliers in the candidate list.

4. The auction

Further two-way communication between buyer and supplier is required. If an agreement can be reached on purchase and sale, corresponding contract terms can be drawn up and price negotiation can be carried out. Upon mutual agreement, the purchaser may purchase goods or services from the Supplier under the contract.

5. Product ordering

The purchaser is required to place an order with the supplier, providing specific order information for the corresponding goods, and then the purchaser will receive the goods before the agreed delivery date.

Procurement Process:5 Steps Of eProcurement You Must Follow

What Is Procure-To-Pay?

Procure-To-Pay refers to the process of purchasing, selecting, and receiving payment for goods and services. Its workflow may include the following parts:

  • Selection of products: At this stage, it is necessary to initially identify what the demand for the relevant product and service is and what the estimated cost will be for use.
  • Supplier Management: According to the product selection and budget, the supplier can be selected. After selecting the best item, the price is negotiated with the supplier to realize profit maximization.
  • Purchase by order: After the supplier is identified, the goods are purchased according to the purchase order, which includes the details of the purchased goods.
  • Order receipt: After receiving the goods from the supplier, the details in the purchase order are compared with the actual goods to verify their correctness and quality.
  • Invoice and payment: An invoice will be created after the goods are verified to be correct. Payment will be made to the supplier after the relevant information is verified to be correct.

Precure-To-Pay can help you streamline your work process with suppliers, reduce your budget, reduce your risk level, and increase your productivity. If you want to spend more time expanding your business, why not adopt Precure-To-Pay to help you?

5 Best eProcurement Software That Will Benefit You

1. Fraxion

5 Best eProcurement Software That Will Benefit You

Fraxion is a leader in expense management, procurement and purchase order management. Using Fraxion helps you speed up the time from order generation to payment while automating the purchasing process, optimizing the business process and reducing your time and budget costs as effectively as possible.

2. Tradogram

5 Best eProcurement Software That Will Benefit You

Tradogram provides the best service for a business or merchant through a very intuitive and easy to learn system that meets the needs of all customers. It increases transparency in the collaboration process by automating the workflow so that every step in the process is clearly visible. The biggest advantage of Tradogram is its 100% expense visibility and multi-level management.

3. Oracle

5 Best eProcurement Software That Will Benefit You

Oracle Service Procurement is enterprise oriented software, mainly used to sell and purchase business services. The software has a well-developed purchasing strategy and an open program that can be easily adjusted to help businesses track and execute complete P2P processes. Its advantage is that it can improve the visibility of supplier performance and cost, and save money to the greatest extent.

4. SAP Ariba

5 Best eProcurement Software That Will Benefit You

SAP Ariba provides e-sourcing support and supply chain management for businesses of all sizes. SAP Ariba uses an intuitive and compliant interface to guide enterprises or merchants to create procurement strategies and match suppliers, so as to facilitate direct contact between buyers and suppliers and achieve the effect of promoting project collaboration in the shortest time.

5. Honest Fulphilment

5 Best eProcurement Software That Will Benefit You

Honest Fulphilment offers you the best quality, risk-free sourcing with the simplest and most transparent pricing structure. All you have to do is register with Honest Fulphilment, and submit your purchase request, and our professional purchasing department will help you find the products you want in the fastest way possible. When you choose Honest Fulphilment to serve you, you not only avoid the cumbersome upfront operation process and fixed-term contract but also indirectly get 2 months of free warehousing service, which is Honest Fulphilment’s biggest and most unique advantage over other e-procurement platforms.

Conclusion

The right e-procurement software should help you remove as much complexity from the process as possible, not make it more difficult. If you want to make your life simpler, setting aside more time and resources to pursue greater success for your company instead of wasting time on complex process operations Honest Fulphilment will be your best bet, You can call 1844619-0365 or contact us.

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