Electronic procurement, commonly referred to as e-procurement,

defines the automation of procurement and supply chain processes

using internet based applications and technology.

#1 Reduced Costs

Costs can be reduced by leveraging volume, having structured supplier

relationships and by using system improvements to reduce external
spend while improving quality and supplier performance. Automation
eliminates paperwork, rework and errors. There are even cost savings
in the not having to print or post things.

Reduced Errors Electronic data is streamlined and easier to check for

errors, there’s also no need to encounter printing errors, filing errors
etc. Past orders are more easily referenced, meaning there’s a greater
chance that people can compare orders to ensure new ones are
correct.

#2 Transparent Spending

Electronically conducting procurement makes it easier to write and

analyze reports on their own procurement systems, meaning people
can ensure that their procurement procedures conform to their
policies.
#3 Increased Productivity

Once peoples are learned the system, e-procurement is less time-

consuming than traditional procurement. Having your records stored
electronically makes it easier to submit reusable tenders. Meanwhile,
use of templates means paperwork can be filled out more quickly.

#4 Eliminating Paperwork

Tired of finding new space to store all that paperwork? With e-

procurement, everything can be saved and stored electronically. This
not only saves you from needing more room, it also makes the process
of finding older tenders more simple.

#5 Increased Transaction Speed

E-procurement is both time-saving and efficient. As the electronic

handling of tasks supports and simplifies the purchasing process,
transaction speed is increased. Also, because of e-enabled relationships
with suppliers, procurement cycle times speed up. The e-procurement
process eliminates unnecessary activities, allowing you to focus on
more valuable tasks.
#6 Standardized Buying

Having various departments making decisions means there are

differences in what is ordered and this often leads to differences in how
they purchase. Automated systems/solutions make it simple for every
department to conform to company standards.

#7 Reduced Errors

Electronic paperwork is streamlined and thus easier to check for errors

—there’s no messy printing to get in the way either. Along with this,
past orders are more easily referenced, meaning there’s a greater
chance that your company can compare orders to ensure new ones are
correct.A common problem with legacy systems is human error. A
human enters in the wrong numbers. A human mishandles a
spreadsheet. A human goes on vacation and doesn’t approve a
purchase order before they leave. Modern e-Procurement systems use
automation to cure these common ailments.