E-Procurement is not widely talk about on the Internet. Businesses rely on web directories, online catalogues, and online yellow pages to look for buyers or suppliers.
Well, you should consider e-Procurement.
What is e-Procurement?
Despite the powerful application of E-Procurement, it is, unfortunately, often considered as an obscure way to enhance your business’ supply chain management.
Not only the resource-intensive implementation of e-Procurement, but also the jargons related to it.
CEOs speak in business language and a bit of Internet-related language. Therefore, everything started with the letter ‘e’ is often confusing and time consuming to learn – e-commerce, e-auction, e-procurement, e-learning, even e-mail – all is so obscure :)
However, take heed. There’s always a way to help you better your business.
First things first – the jargon-buster
I understand a bit about e-Procurement, and have ‘invented’ layman’s terms for e-Procurement and the related processes.
What is E-Procurement?
Also known as supplier exchange, it usually comes in a form of website. E-Procurement (electronic procurement) is basically the purchase and sale of products and/or services through the use of Internet Technology, aiming to streamline processes and reduce costs. It is highly related to and integrated with supply chain management
You mention Supply Chain Management. What is it?
Supply Chain Management is the management of everything involved in bringing products and/or services from a supplier to a customer. The aim is obviously to add value in everything you do in the management process.
What is Strategic Sourcing?
Strategic Sourcing involves processes done by an organisation to ensure businesses’ purchasing activities (such as those in e-Procurement) are done in more efficient and effective manners, including assessments on the market, the business and the suppliers, as well as the negotiation with suppliers.
What is E-Auction?
E-Auction is one of e-Procurement activities that include the automation and streamline of business tenders in an auction system, including the provision of automatic evaluation methods.
How e-Procurement solution provider can help you ‘get it’ and take benefit of it.
All of those sounds great – but it must be resource-intensive and complex.
It doesn’t have to.
There are e-Procurement solution provider that allow you to use applications in place to run your own e-Procurement. You can also have the e-Procurement solution provider to manage all e-Procurement activities, leaving you what’s important for your business: decision making.
The main benefits of partnering with such e-Procurement solution provider are:
- Resource-effective – cost saving, speed-up purchasing process, and other efficiencies.
- You are ‘enrolled’ in an established network of buyers and suppliers.
- You can manage the e-Procurement in a hosted system already in place.
- You can even have the solution provider to provide you with full service, including the management of e-Procurement activities for your business.
- Cut the chase out of negotiations – the e-Procurement system will help you with the details to speed-up negotiation process with your buyers or suppliers.
Your next task is to find the best partner for your e-Procurement solutions.
Image by wili hybrid.