What are the benefits of e-Procurement?
Procurement costs generally account for 60% to 70% of the total expenditure of Manufacturing SMEs. Procurement is a critical business function, affecting the overall performance and efficiency of an organization. Most Manufacturing SMEs face challenges such as limited human resources, market competition, a struggle to meet delivery commitments, etc. Most manufacturing SMEs still carry out manual procurement process, which involves a lot of tedious, recurring activities to be performed with limited manpower, time and skills. Let us now understand how Manufacturing SMEs can reap the benefits of e-Procurement.
e-Procurement Software Solution for Manufacturing SMEs
e-Procurement software solution streamlines the procurement process, digitalizes and automates a lot of tedious tasks, saving significant time & efforts. Let us discuss in details all the advantages of e-Procurement solution for Manufacturing SMEs.
Benefits of e-Procurement for Manufacturing SMEs
Switching to e-Procurement offers numerous advantages to manufacturing SMEs. Some of the most prominent advantages of e-Procurement are given below.
- Huge Savings in Manual Efforts
- Shorter Procurement Cycle
- Increase Supplier Reach
- Improve Negotiation Leverage
- Transparent Procurement
- Implement Companywide Procurement Policy
- Real-Time Information, Reporting & Analysis
Let us discuss these in details in the following section.
Huge Savings in manual efforts
Procurement teams in SMEs have to perform a lot of monotonous activities like sending RFQ, receiving quotes, asking for revisions, internal approvals, etc. These activities take up a lot of time. e-Procurement software solution automates all such activities and saves the significant time of your workforce. They can use this time to perform more strategic & valuable tasks. This improves the overall functionality of the procurement department.
Shortens Procurement Cycle
Procurement as a business function involves a lot of communication and collaboration activities among various stakeholders such as vendors, users, management, etc. The absence of automation, lack of tools for collaboration between stakeholders, generally results in bottlenecks. Consequently, the procurement process takes a lot of time. An efficient e-Procurement solution turbo charges communication and approvals. Thus, helps SMEs to shorten their procurement cycle. A shorter procurement cycle time leads to improvement in timely delivery.
Increases Supplier Reach
Automation of procurement tasks such as vendor registration, sending RFQ, automated Comparative Statement generations, automated approval process, reduces the workload of Purchase executives. This enables them to focus on their core activities of reaching out to more vendors, finding suitable suppliers for their procurement needs. This has a very positive impact on supply lead time, quality, cost, etc.
Improves negotiation leverage
e-Procurement software solution integrates data across locations or units from disparate procurement systems of an organization. Centralized procurement data helps to aggregate demands from all group companies. Therefore, procurement teams can negotiate for procurement in larger quantities. e-Procurement Softwares provides features that enable communications with a large number of suppliers, which also improves negotiation leverage. Specifically designed e-procurement tools such as price list, asking the vendor to meet target price and auctions provide better tools for negotiations, that too in a very time-bound manner.
Transparent procurement system
e-Procurement software makes the whole procurement process very transparent and auditable. e-Procurement software solution provides a single system where all stakeholders i.e. Vendors, purchase team, users and managers work together on their respective tasks. This eliminates the chances of missing any quotes or other relevant procurement data. The whole process is centralized, traceable and auditable.
Implement Procurement Policy
Implementing a single central procurement system provides the power to implement a standard procurement policy. Organizations can implement their procurement rules in e-Procurement solution. The organization can monitor and analyze the impact of their current procurement policy. If required, they can roll out improved procurement policy through e-Procurement solution.
Real-Time Reporting and Analytics
e-Procurement solution provides dashboards for Management, purchase executives and vendors. They can get a real-time update about procurement data. All users can get past procurement trends, meaningful data for informed decision making. This facilitates improving the procurement function.
e-Procurement software makes procurement more transparent and process driven. e-Procurement helps to increase the efficiency of the procurement team by increasing supplier reach, negotiation leverage. This results in improved cost advantages, better supplies & timely deliveries. e-Procurement provides analytics data and insights for informed decision making. Thus, e-Procurement provides a competitive edge to Manufacturing SMEs.
Force Intellect e-Procurement Software Solution for SMEs
Force Intellect provides an e-Procurement software solution for Manufacturing industry SMEs. Our e-Procurement software solution automates and streamlines procurement processes of manufacturing industry SMEs. Our e-Procurement software solution manages all phases of procurement such as vendor registration and management, indent management, request for quotation, bidding process to participate in reverse auction, scrutiny, and evaluation of vendors, finalization and award of the contract.