The procurement of merchandise is part of day-to-day business in many companies. Raw materials, goods, tools and secondary services should be available in the correct quantities on time. In connection with difficulties in which procurement the production comes to a standstill. E-procurement systems can now help to avoid this. As E-procurement works in detail, knowledgeable you in this game of hide and seek.

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Electronic procurement: what are the benefits?

With e-procurement you turn the advantages of digital solutions for the best of you Optimizing your procurement processes at. E-procurement systems provide more energy efficiency and transparency in the entire procurement process and support stable, trusting supplier relationships. The advantages of the system are now complex.

E-procurement combines modern communication methods with classic procurement measures. Electronic procurement is part of the E-commerce and almost exclusively in Business-to-business district relevant.

Reduce value and increase energy efficiency through e-procurement

Ordering processes such as needs assessment, budget review and payment processing cost companies a lot of time. Through the Digitization of these process steps you get a higher energy efficiency and reach your goal faster. The digital data transmission and further processing in real time shortens and automates numerous processes.

In the purchase-to-pay standard, which includes all activities of the procurement process, you digitize more than the pure order process, the complete job processing, including payment processing and checking which deliveries are made. Companies can create a cost cutting in the high double-digit percentage range and cut the processing times massively.

Greater reliability and transparency

Merchandise management and resource planning give you a complete unity Overall view more than existing resources and the planned consumption of goods. The e-procurement system completes the overall picture, while you can compare availabilities, delivery times and value in real time. 

By integrating the e-procurement system in ERP and inventory management, stocks can be automatically compared. This way, bottlenecks can be avoided more reliably. The reports of the e-procurement system deliver synchronously transparent overall view more than orders placed and value accrued, broken down by period and group. 

That transparent, direct and standardized process also provides an improved warehouse for a future-proof one Supplier management

Better basis for negotiation through greater versatility in what is purchased

Depending on the orientation, an e-procurement system can provide up-to-date knowledge about various providers - up to and including the global one Market comparison. With little pomp, buyers have the maximum stock and versatility.

That direct comparison of offers creates a stronger status together with purchase negotiations. E-procurement systems that are coordinated with one another can be of secondary importance Merger of multiple buyers and the opening of buying groups.

E-procurement: system with open, half-open or closed architecture

E-procurement systems are often intimate with others Systems like ERP, which interlocks financial accounting, inventory management and materials management. That one Data transfer usually more protected than the intranet or via VPN. 

This allows the Systems of three types subdivide:

  • Closed system: As a result, the supplier and addressee have a common system. Such architecture offers a very large scope of delivery. That pomp for the best of the development process and introduction is high and is only worthwhile if an extensive demand for central products is to become dull in the long term more than unite suppliers.
    Examples: automotive supplier, basic range in food retail.
  • Semi-open system: Half-open systems, like buy-side or sell-side, are also fully integrated on the customer or supplier side. The other side interacts more than an open interface in the browser. Often, interfaces are offered by the system operator as secondary, with which partner companies can commit themselves without restriction. This type works well with large suppliers who work with many smaller partners.
    Examples: Pub assortments in bookstores.
  • Open systems: In open e-procurement systems, the interaction is asynchronous. Catalogs and marketplaces flop under this guy. Above all, you come to the best of seldom and irregularly used goods for security. Examples: Services and maintenance in mechanical engineering.

The variety of offers and solutions is a secondary reason why companies choose Reluctantly implement digitization of your procurement. Efforts towards international standardization are intended to lower the obstacles in the future through different digitization approaches.

E-procurement software for the benefit of suppliers and buyers

Often which participant gives which larger one Market power the objective of the system. Depending on the objective, the software is controlled by e-procurement systems such as buy-side systems by the buyer or, like sell-side systems, by the supplier. 

in the Supplier system offer, conditions and prices are defined. Connected buyers can also grab these offers. This structure makes sense for influential suppliers with numerous, smaller customers, such as the prime example in the building materials trade.

Procurement systems like buy-side systems are developed by the buyer. In this way, which addressee defines his requirements, conditions and prices. Affiliated sellers can also apply to cover this need. Such a variant is suitable for influential addressees with numerous, smaller suppliers, such as the prime example in the food retail sector.

Challenges in e-procurement

The first challenge is this Fund of the suitable system. To do this, a company must precisely define which goals do it and with which KPIs it wants to categorize salvation. In the context of which goal definition should the needs of all stakeholders be considered. Companies that clearly define their goals and regularly examine them with the help of suitable key figures have the greatest advantages.

the Investing for the best of the procurement which software as well as the institution and setting can be very extensive. Since every company has individual requirements, the smooth integration into existing systems such as ERP, inventory management, financial accounting, project management and CRM causes a lot of development work.

E-procurement examples from which reality

How e-procurement systems come to safety in which reality and now help Optimize procurement processes, illustrate the following two examples, among others.

Prime example 1: A medium-sized industrial company

A medium-sized company with 12 employees rents coffee systems in packages with a machine, beans and tableware. Every year he buys around 20 to 40 business devices together with market leaders. For this purpose, which office staff uses VPN access to the sell-side systems of which manufacturer. The most important suppliers are directly integrated into the ERP software with specially developed interfaces. 

The soil development of new devices takes place after a manual inventory check. Consumables and cleaning accessories are involuntarily reordered at contractually agreed conditions when the inventory management reports low stocks.

Prime example 2: A regional supermarket chain

A food retailer with a regional focus and more than 100 branches runs its own buy-side shopping platform. Regional suppliers apply for supply contracts under the advertised conditions. The prerequisite is that the suppliers integrate the procurement system according to the specified specifications.

In connection with contractual partners, soil development and decommissioning take place fully automatically in the purchase-to-pay standard.

Synchronously, which shopkeeper joins the basic range of dairy products more than one additional platform with two other chains. In this way, like a purchasing community, they increase their bargaining power in contrast to the large dairies.

Conclusion: e-procurement systems such as efficient and digital problem solving for the best of procurement

E-procurement systems can do that Versatility and transparency in what is bought increase and clock-controlled decrease the value. The design such as an open, semi-open or closed system with sell side, buy side or marketplace orientation depends on the goals and which supplier structure of which company.

In addition to the initial investments, the clear definition of goals and KPIs as well as IT security are the most important challenges of the E-commerce.

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Cover photo: CreativeDJ / E + / Getty Images Plus

Originally published May 14, 2021, updated May 14, 2021

Original source Hubspot

Published On: May 14th, 2021 / Categories: Digitales Marketing /

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