Estimated reading time: 5 minutes
• Why are there so many various types of e-procurement software? And how do you know which solution to settle for?
• It’s no secret that procurement as a whole has benefited immensely from increasing automation and the introduction of sophisticated technologies. However, this has also opened the door wide open to all sorts of procurement solutions.
• In this post, we’re going to simplify things by going back to the e-procurement software basics, beginning with what is e-procurement software anyway?
What is e-Procurement Software?
Procurement solutions, also known as e-procurement software are simply cloud-native technologies that allow online sourcing, purchasing, and management of spend. This software furnishes procurement teams with digital tools that streamline procurement functions.
Examples of e-procurement software are those involved with
A question you may be asking is, how do you know what e-procurement software is best for your organization?
This is a good question.
Simple parameters you can lean on to guide you in your selection include assessing:
- Compatibility with your current ERP solution
- The ease of use of the technology (you don’t want a solution with a steep learning curve!)
- The range of automation provided by the solution
- The price point and whether it sits squarely within your budget.
Features you’ll also want to look out for as a minimum:
- Supplier management functions make it easy to onboard new suppliers, evaluate their performance, and communicate with them in real time.
- Advanced report generation allows procurement teams to create vendor reports easily.
- Requisition, purchase order, and invoicing tools provide clear insight into purchases, payments, and spend tracking.
- Customizable templates and workflows which are in compliance with state and federal regulatory practice.
- The ability to seamlessly create, upload, or maintain product catalogs which speeds up the sourcing process and thereby reduces time spent on administrative tasks.
Now, is e-procurement software really as great as it’s touted to be? Here are some benefits you can anticipate.
3 Benefits of e-Procurement Software
1. Improved Process Efficiency
Procurement solutions provide visibility and insight. This information can be used to identify underperforming vendors and thus root them out quickly. The ability to track various supplier performance metrics as well as have a clear oversight of the internal process makes it easier for data-driven business decisions to be made. Furthermore, such technologies can also improve your purchasing and supply chain management in 2020.
2. Clear Spend Management
How money is spent month-to-month is no longer a case of guesswork. With inbuilt functions that permit tracking of spend, procurement teams can pinpoint leaks that need to be plugged in. That’s not all, but e-Procurement software also allows requisitions to be collected and collated into a single purchase order – a move that can help mitigate and better manage spending.
3. Fewer Clerical Errors
Human errors abound when procurement is being handled manually. From incorrect data entered to wrong quantities, and lost documents, the list is endless. Fortunately, with a procurement solution, inaccuracies are spotted faster, inconsistencies rectified quicker, and documents stored in a central digital repository. The structured nature of e-procurement software guarantees an improvement in workflow, reduction of errors, and overall operational efficiency.
Having considered just three advantages of procurement solutions, let’s now turn our attention to the types of e-procurement software in existence.
What are the Types of Available e-Procurement Software?
What are the different types of e-procurement software out there and which solutions should you settle for? We’ll look at four types based on the service they provide.
Procurement Solution for Qualifying New Vendors – RFQ | RFI | RFP
Get the information you need in less time. By automating your Request for Information, Request for Proposal, and Request for Quote, you can receive supplier information and bids in record time. Ditch the manual process and opt for an automated process that makes it easy to qualify vendors while simultaneously building a curated database of preferred vendors.
Procurement Solution for Selecting Vendors – Reverse Online Auction
A major part of the procurement process is vendor selection. A reverse online auction software gives you the opportunity to invite suppliers to bid for contracts in a real-time auction. ProcurePort’s solution in particular makes it possible to realize cost savings of 18 to 40%.
Procurement Solution to Manage Contracts – Contract Management
Contract management software is designed to facilitate the contract management process of procurement. Store vendor data easily, and keep abreast of deadlines, expiry dates, and expectations seamlessly. Say goodbye to lost contracts owing to the singular repository that’s easy to access and in the cloud.
Procurement Solution for Financial Transparency – Procure-to-Pay
Manage functions beginning with requisitions, approvals, purchase orders, invoices, and payments with a procure-to-pay solution that’s guaranteed to streamline the process for you. Enjoy more transparency and control over your spending. An additional bonus is an effortless generation of auditable spreadsheets and workflows.
Procurement Solution for Uncovering Savings Opportunities – Spend Analysis
The desire to cut down on costs and reduce spending are major objectives for procurement teams. That’s why the adoption and integration of spend analysis e-procurement software are imperative for any serious organization. Equipped with such a tool, gain visibility and control over spend, regardless of how big your business is.
Get Started Now with Leading e-Procurement Software
ProcurePort’s dynamic and revolutionary cloud-native procurement solutions boast advanced features, smart insights, and industry-leading analytics. Trusted by organizations such as UNOPS, HUD.GOV, and conEdison, look no further for innovative e-procurement software.
In a market filled with different types of e-procurement software to choose from it can be overwhelming. That’s why we’ve made it easier to see our software in action. Schedule a free demo today. Alternatively, contact us to discuss tailored procurement solutions.