What is e-Purchasing?- Definition
Electronic purchasing (e-purchasing), automates and extends manual buying and selling processes, from the creation of the requisition through to payment of the suppliers. The term e-purchasing encompasses back-office ordering systems, e-marketplaces and supplier websites.
E-purchasing, also known as electronic procurement, is the digital purchase and sale of supplies, services, equipment, and work digitally, as well as essential information and networking technologies. These transactions take place between businesses, governments, and between businesses and consumers. Procurement is the process that follows sourcing and contract management and just before supplier relationship management, invoice management, and payment.
In its most basic form, e-purchasing allows transactions between firms, customers, and other value chain partners to be centralized and automated. As a result, the speed and competency of procurement practices are boosted and advanced.
At its core, e-purchasing enables chief procurement officers or formal procurement departments within enterprises to develop an outline of policies required for obtaining products and services for said companies. The ultimate purpose of these operations is to obtain the best possible pricing while simultaneously offering the most value when needed.
Benefits of E-Purchasing
The advantages of e-purchasing are numerous in general. The process itself is designed to make things quicker, simpler, and more efficient for businesses and their customer relationships. Here are some of the advantages of transiting from a manual to an e-purchasing method.
With an e-procurement process in place, your organization will be able to avoid duplicate expenditure, take advantage of bulk purchasing, and save money on the costs normally associated with investing in paper-based systems and tools. Because all of your transactions are digital, it is simple for your workers to compile and evaluate reports on your procurement systems, ensuring that your e-purchasing operations are in accordance with public and corporate policy.
Without a doubt, e-purchasing saves time over traditional procurement methods. Because all records are saved digitally, you have the option of submitting reusable tenders. There's also the fact that templates make the paperwork side of procurement a breeze because they're faster and easier to fill out.
A Smoother Supply Chain
With an e-procurement platform in place, both you and your clients stand to benefit because your supply chain mechanisms are now new and enhanced. Because your company may now link to external supply chains, you will be able to assign real-time data for your enterprise resource planning (ERP) and supply chain management needs.
E-procurement exists to simplify, expedite, and streamline the purchase process. In that spirit, the digital management of previously manual processes (such as the task of carrying out transactions) has now become quick and simple. Furthermore, because the relationship between firms and their suppliers is now digital, procurement periods have shortened.