eProcurement is B2B or B2C or B2G procurement of
products or services through an automated electronic platform such as internet
or any other ERP system. eProcurement allows qualified vendors to submit their
online technical and commercial responses against the different requirements of
buyer organization. eProcurement is a real value addition of eCommerce
solutions which not only facilitate but also integrate and streamline the whole
procurement process.
A well-organized ERP
system can helps the organization to minimize process costs by fast transaction
of purchase orders. Transparency, accountability, efficiency in cost
effectiveness is the keen pillars of an eProcurement cycle. Different
organisations have their own systems and documentation which is being used by
procurement staff during the procurement process and for time being these tools
may carry out the procurement cycle in an efficient manner but there is always
a need for implementation of well-mannered eProcurment system with core
procurement fundamentals for automation of the process. These fundamental
elements include eRequsition, eVendor Management, eCatalog, eTendering,
eContract Management ePerformance Management and eInvoice management.
By the implementation of
an eProcurement System or ERP system organisations can reduce entire purchase
cycle and purchase cost. The eProcurement dramatically reduces error in the
procurement process, as orders are created by selecting items from catalogs
within the system. Process efficiency is
a benefit to implementing an electronic procurement system, but workload
efficiency is not the only benefit. eProcurement produces tangible spend
savings through strategic sourcing, maverick spend reduction, and by
identifying cost saving opportunities. The most important from all the real
factors, eProcurement can shift transaction process to the end users who
actually using the purchased products or services; it can gave extra time to
supply management personnel for strategic value creation work.
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