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What is eProcurement?

eProcurement has seen a significant increase in demand and is quickly becoming the industry standard for more and more companies thanks to the many benefits it offers.

Alex E. Pjetra (Product Marketing Executive) Written by Alex E. Pjetra (Product Marketing Executive) 28 Jul 2020 in B2B eCommerce

What is eProcurement?

The term eProcurement, also known as electronic procurement or supplier exchange, refers to the purchase and sale of supplies, equipment, work, or services of business-to-business (B2B), business-to-consumer (B2C), or business-to-government (B2G) via the Internet and with the help of eProcurement systems and/or ERP software.

eProcurement encompasses many procurement processes and elements and mainly consists of but not limited to catalogue and vendor management, purchase order quotations, purchase orders, order status, shipments, invoicing, and payments to name a few.

Alongside the eCommerce boom, eProcurement has also seen a significant increase in demand and is becoming the industry standard and the next step for many companies once an eCommerce site has been set in place.

The increased demand for eProcurement solutions is thanks to the benefits that they offer to companies which we explore below.

Key Benefits of eProcurement Systems

Without a doubt, eProcurement systems offer many benefits for your company. However, below we have listed the most important ones that you should be mindful of when looking for the right eProcurement system:

  • Increase efficiency & productivity with manual task automation: Many of the tedious and time-consuming every day tasks such as document management and updates of purchase order quotations, purchase orders, price negotiation, order status updates, reminders & notifications, invoices, payments, and more are automated or streamlined by eProcurement systems for both a company and its suppliers. This increases efficiency and productivity while freeing up time for staff to complete other tasks.

  • Improve the user experience with advanced procurement workflows: End users can self-service 24/7, from anywhere, and on any device online. This creates a faster, more efficient, and more frictionless processing of employee requisition and supplier payments all leading to an improved user experience, satisfaction, and retention.

  • Save money with Improved visibility of purchases: eProcurement systems give companies an improved visibility into its spend. Data collected is very valuable and can help your company control expenditure, identify areas that you can consolidate with your suppliers, or even leverage opportunities to negotiate cost savings.

  • Reduce errors & save time with real-time ERP integration: ERP integration ensures that real-time, accurate product and account information is shared between your ERP software or finance and account system and your supply chains for a better and more accurate flow of information and transactions by all parties involved in the procurement process.

What is an eProcurement system?

eProcurement systems are designed to help companies centralise and automate core processes such as vendor management, catalogue management, purchase orders, order status, notifications, reminders, invoices, payments and more, between them, their customers, and partners.

Punchout catalogues make it easier for customers to access, browse, compare, and buy products from a supplier’s eCommerce site, all while remaining in their eProcurement system or ERP software.

They also provide you with a better understanding of purchasing transactions, and an improved handle on the life-cycle of a company’s contract with their suppliers. An eProcurement system’s innovative and rich features help improve efficiency, effectiveness, as well as overall costs of procurement.

An eProcurement system’s aim, in general, is to make your company more efficient and streamlined while reducing costs. As with most software, eProcurement systems have been created to make your’s and your employees' life easier.

4 Types of eProcurement systems

Depending on your business needs you need to know what eProcurement software solves what problems for your business.

Below, you will find a list with 4 different types of solutions you need to know.

  1. Order Punchout Catalogue: An order punchout catalogue is an online software that gives an eProcurement application the ability to allow customers to access a supplier’s website from within the customer’s own procurement system.

    Punchout catalogues make it easier for customers to access, browse, compare, and buy products from a supplier’s eCommerce site, all while remaining in their eProcurement system or ERP software.

  2. Supplier Portal: A supplier portal, or also known as a vendor portal, is an internet-based eProcurement solution that allows companies to manage and connect with 3rd party suppliers of goods and/or services.

    A supplier portal provides suppliers with a system that makes their job easier by automating manual and time-consuming daily tasks while providing the updates a company needs without all the grunge work that’s usually required. For more information, read our supplier portal blog.

  3. eCatalogue: An eCatalogue is a digitised version of your print catalogue that acts as your go-to place for potential and existing customers alike when they wish to view your companies products or services and place an order online.

    An eCatalogue solution offers many benefits for suppliers from very accurate information and pricing, to easy management, to lower costs, to quick and easy updates, and many more that you can read about here.

  4. Uniform Management System: A uniform management system is a secure online solution that accelerates the process of ordering and reordering sets or packs of apparel, equipment, and other products within compliance or uniform heavy industries.

    It can also help businesses of all types to significantly streamline, automate, and improve their procurement process using this online tool. You can read more about it here.

Each eProcurement system listed above is designed and built to help your company streamline and automate procurement processes and solve certain problems for your business.

Summary

An eProcurement software is an essential tool for every business’ procurement processes. It can help streamline your business processes, reduce costs while allowing you to grow and scale.

eProcurement systems offer distinct advantages to companies regardless of their size or complexity. With the right piece of software, your business will become more efficient and closer to achieving its goals.

Also, remember that eProcurement systems are not built to be complex or too hard to use. They are built to help make your life easier and remove tedious and repetitive tasks.

If you are looking for eProcurement solutions such as Order Punchout Catalogue, Supplier Portal, eCatalogue, or Uniform Management System, take a look at the Aphix eProcurement suite of solutions, designed and built to tackle the most common procurement problems.

You can book a free demo to see our eProcurement solutions in action and understand how they can help your business.

Alternatively, you can send us an email on sales@aphixsoftware.com to ask any questions or call us on +353 (0)41 2137222 and a member of our team will be happy to help you.