Before implementing a procurement software, or a series of procurement technologies just because it’s industry standard; it’s important to understand the reasoning, and the benefits. e-tendering is a term slightly more common in foreign markets, and is essentially interchangeable with e-RFX. In other words, e-tendering just refers to procurement and tendering operations and procedures that have migrated to an online and/or cloud-based environment. The benefits of e-tendering reach far and wide throughout an organization.
While each organization is unique in their procurement needs, the benefits seen from implementing e-tendering processes slightly varies from company to company. That being said, there are some major trends in the benefits of e-tendering.
As technology continues to advance at a faster-than-hyperspeed rate, it’s presence in industry is ever-growing. Procurement teams in every industry and across each economy are seeing the benefits of e-tendering year-after-year.
The 5 Benefits of e-Tendering
It is important to note that while implementing e-tendering processes and technologies can yield significant results, that is contingent upon an educated and informed staff. The technology will only be helpful as long as those employed to use it are trained to do so.
The right staff, and the right combination of e-tendering softwares and solutions, and companies can see massive benefits from e-tendering, such as:
- Increased Efficiency: Optimizing efficiency has recently sprung to the forefront of many companies fighting to survive the pandemic. However, efficiency has been a focal point for organizations paving the way for much longer than recent history.
Some of the benefits of e-tendering come from streamlined processes, automated procedures, and software-managed systems. This reallocates some of the day-to-day responsibilities of procurement staff, opening up their schedule to focus on other value-driving activities.
- Higher Year-After-Year Savings: While ‘the bottom line’ has been re-titled ‘the triple bottom line’ to include corporate social responsibility, and environmental consciousness, the financial aspect is still included as the third element.
The increase in efficiency, and the increased bandwidth of the procurement department lead to higher procurement-generated savings year-after-year. Raising the financial bottom line, and putting a smile on stakeholders faces.
- Higher Quality Vendors: Since procurement is essentially all-about sourcing, vendors, and suppliers, having a pool of higher-quality vendors is a major competitive advantage. Through the e-tendering software, this pool of vendors still has to compete for bids, however the quality of the contract is nearly guaranteed.
Trust in the vendors translates to trust from consumers. With the security of a strong and resilient supply-line established and maintained through e-tendering systems; consumers will grow to trust the security your brand can offer. Higher customer trust leads to higher rates of customer satisfaction, and customer loyalty. Plus, this drives the average customer lifetime value upward.
- Less Overhead: As a result of the other benefits like increased efficiency, and increased bandwidth, the overhead of the procurement department is actually reduced as time moves forward, and the savings continue to increase. Therefore furthering the financial stability of implementing a strong procurement process with the help of e-tendering software like that offered by ProcurePort.
- Deeper Data Insight: One of the other big buzz words floating around the market today is big-data. The more information a company has on any given customer, process, or system, the more insight they’re able to apply to making informed decisions. One of the biggest benefits of e-tendering is gaining access to a whole slew of metrics and data that would otherwise be impossible to track and utilize manually.
Automating processes, and implementing a software that can track these data points provides meaningful insight to companies and pinpoints areas that are prime for improvement. This also helps identify opportunities for additional savings on contracts and bids, as well as how to best leverage a marketplace for the specific needs of a company.
Companies see a myriad of benefits from implementing e-tendering processes into their procurement strategy. As technology continues to grow, its presence in business operations is inevitable. Understanding the current use of technology, as well as its future trajectory can provide a significant competitive advantage.
Visit ProcurePort to continue exploring the great benefits that procurement software and e-tendering solutions can offer your business. With procurement professionals ready to aid you with any questions, ProcurePort is your premier source for procurement information, knowledge, and software.