e-Procurement benefits buyers and suppliers

For buyers, potential e-procurement benefits come in the form of measurable operational savings, more advantageous economic outcomes, and improved corporate governance. Almost a decade into the use of e-procurement systems, their ability to reduce the time and effort spent preparing, publishing and evaluating tenders is widely accepted; as is their ability to increase the number of potential suppliers, both domestic and international. And more suppliers equals more choice for buyers in the price, quality and innovativeness of the products and services sought.

Reducing procedural errors is another advantage, as is the contribution e-procurement can make to transparency and accountability in how and what a firm purchases. More recently, the value of harnessing e-procurement systems to monitor spend patterns and conduct business analytics has come to be recognised.

And the commercial gains to be had from using web-based procurement applications aren’t all one-way. For suppliers too, e-procurement holds out the promise of a range of tangible benefits. First and foremost it lowers the cost and reduces the time and effort of submitting a bid or tender. It also widens the number of contract opportunities that come within the purview of the firm. In an age of borderless business, this is of increasing importance. As with buyers, web-based applications help suppliers avoid making procedural mistakes in submitting tenders as well as allowing them to track their activity and success rates.

Read more about e-procurement, and what it means for SMEs in particular, by downloading our free white paper: e-Procurement: What SMEs Need to Know.

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