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Interesting Advantages of Procurement Technology Tools
E-procurement structures spend across providers and centralize tracking, allowing the buyer to leverage volume and reduce costs. This enables businesses to continuously track cost reductions and identify and address any gaps.
Fremont, CA: A wide range of industries are embracing technology to automate supply processes, resulting in significant bottom-line benefits for businesses through increased productivity, visibility, and cost-efficiency. At a high level, e-procurement allows firms to increase efficiencies in business transactions while also increasing their bargaining power. One of the key metrics used by benchmarking firms to assess the maturity of procurement organizations is the use of technology. As a result, it is critical to find the right tool and reap the benefits.
Some of the benefits of going the e-purchasing route include:
Improved Spend Visibility and Reduced Costs
E-procurement structures spend across providers and centralize tracking, allowing the buyer to leverage volume and reduce costs. This enables businesses to continuously track cost reductions and identify and address any gaps. It also aids in contract compliance, tracking vendor SLAs, and implementing scorecards, resulting in higher savings and increased supplier productivity.
Electronic catalogs make supplier product offerings available electronically and provide buyers with more product and price information. With the increased popularity of these catalogs, suppliers are moving toward offering a more standardized product, allowing buyers to more easily compare offers from different suppliers.
E-procurement aids in the automation of internal procurement processes such as purchase order tracking, RFX events, as well as supplier evaluation, resulting in increased operational efficiency. Because these activities can be completed without human intervention, the transaction time is reduced, and downstream processes are sped up.