10 Ways E-Procurement Can Help Grow Revenue
To help boom your business using E-procurement now’s the time for business owners to start work on reimagining every aspect of the function. Procurement has remained an afterthought at most corporations whilst the topic shifts to developing sales. Effective procurement is a tactical intention for maximum corporations. It is a strategic characteristic aimed at enhancing an enterprise’s profitability – if managed proactively, procurement processes can drive business value. Wondering how can a digital procurement system add value to your business? Here are 10 reasons how it can help grow revenue.
1. Streamlined Procurement Procedure
For an easy E-procurement process, you need to identify your needs, evaluate and select vendors, negotiate contract terms and generate a purchase. It allows us to simplify procedures and enhance productivity by reducing the time spent on repetitive obligations. Procurement is used to streamline tactics, reduce raw material prices, and figure out better sources of delivery. Improve the efficiency of business processes, quality, and consistency with E-procurement services
2. Decreased Paperwork and Fewer Human Mistakes
According to stats, 44% of B2B purchases are made through a mobile phone. Since all transactions are managed online, there may be no office work or related exertions cost or any sort of human mistakes. It has immensely increased accuracy and reduced transport times. Reducing or doing away with your paper utilization allows to reduce or take away the want for paper or other supplies.
3. Manage Your Expenditures and Lower Operational Costs
E-procurement software ensures that buying best takes place with those permitted high-performing companies and removes rogue spending. It helps and increases your possibilities to save and boosts expense management with favored providers. You will also be saving money by avoiding the duplication of costs by comprehensive bulk buying and reducing costs associated with paper-based systems.
4. Reduce Lead Times
The management of the leads takes more than just the management of the suppliers. The ability to reduce the lead time helps to focus on the improvement of the work. Reducing lead times is very important for the reduction of the harmful impact it can have on your business. The comparison of the duration of the specific standards can help companies to identify inefficiencies. This will reduce transportation costs, optimize operations, and increase productivity.
5. Improved Order Management and Better Scalability
The order management process starts from the consumer placing an order, to maintaining a record of that order until it’s delivered. Procurement simplifies the process by using an efficient tracking system and completing sales orders. It makes it less complicated to manage the flow of files through automation and electronically producing and transmitting any order-related documents to suppliers.
6. Boost Staff Motivation and Productivity
According to statistics, happy employees increase the productivity of a company by 31% and revenue growth by 37%. It keeps the employees motivated and increases the morale to achieve common business goals. As E-procurement automates some of the processes, the team can spend more time on strategically full-size features and tasks. Cloud procurement solutions are less time-taking than conventional procurement. With the use of technology and by having your statistics stored electronically it becomes simpler to submit them to reusable tenders.
7. Avoid Invoice and Payments Delay
E-procurement drastically reduces processing time. It allows you to communicate and ensure that all invoices and payments are received as well as processed in a timely fashion. Payments can consequently be made on time, warding off dunning costs. Keep away from past delay charge consequences and ensure the invoices are approved and paid consistently with terms. With a faster bill management process, organizations are in a higher role to benefit from seller discounts.
8. Easy Management of Vendors
E-procurement makes each element of government shopping, contracts, and seller relationships easier. It keeps information of contemporary and past contracts, in addition to possible future procurements. It also continues to maintain exact information on vendor names, products procured, the amount paid, and the shopping organization.
9. Mitigate procurement risks
Keep away from enterprise losses, reputation harm, and broken competitiveness by creating a procurement solution with automatic risk management as a part of your procurement plan. A smoothly functioning procurement plan means standardized, reliable relationships with companies, your team, and your customers. Build stronger relationships with suppliers, and risk management strategies for prevention as soon as they appear. To deploy or expand the network to reduce the geographical and vendor-oriented risk. This will increase the transparency of the supply chain to identify potential threats.
10. Creating New Revenue Opportunities
According to statistics, 68% of B2B buyers purchase online. E-procurement delivers clear benefits. Corporations with superior procurement capabilities know that provider collaboration offers opportunities for each event to enhance sales and profits. It has automated essential supply chains and provided a blessing for the purchaser and increase supplier and the overall economic system.
Technology makes procurement financial savings easy. By using a digital procurement system to always optimize your procurement manner, you could be certain that you’re getting pleasant offers, maximizing your contracts, and curbing wasteful or unauthorized expenditure. Because the e-procurement will enhance profitability and make sure your enterprise is prepared for any economic eventuality going forward. We offer you a robust cloud procurement solution that is industry neutral. Contact MavenVista to know more!