How to optimise your purchasing strategy with e-procurement?

The concept of e-procurement has been introduced in recent years as a logical consequence of the increasing digital transformation of companies’ internal processes. The use of this type of digital solution makes it possible to improve a company’s purchasing strategy and target profitability. The benefits of e-procurement are numerous and generate positive externalities for the entire organisation. Find out in this article how to optimise your purchasing strategy by using an e-procurement solution.

The need to optimise the purchasing function

The traditional purchasing function is carried out by a maximum number of direct actions by a multitude of people. These problems are no longer encountered thanks toe-procurement. Supply management is optimised and communication is restricted to the right people. Where you often have to talk to your suppliers to tell them what you need and discuss things with them, e-procurement cuts out these movements.

The purchasing function also includes negotiations in its range of tasks. Negotiations are strategic and lead to a collaboration that could be beneficial to both parties involved. To be successful, negotiations need to be well prepared. In terms of time, this can be a lengthy stage in the purchasing process, especially if there is multiple supplier selection. Or if this function is carried out by a single person within your company. That’s why the need for optimisation is so great, and why e-procurement is such a good purchasing strategy.

Use e-procurement to find the best suppliers

E-procurement simplifies the task of finding you a good supplier of the materials you need for your business. Whether it’s indirect purchasing or production purchasing, using an e-procurement procurement solution is a good strategy. With e-procurement software, you’ll have right in front of you a list of the professionals who supply the resources you need. The essential details of each supplier and their offers are visible and transparently accessible to your staff in just a few clicks.

What’s more, you can easily compare a selection of products. Buying the right product or service at the right price is a major challenge for small and medium-sized businesses. With a digital e-procurement tool, it’s easy to analyse and compare each proposal to select the one that best meets your needs. Essential information such as prices and delivery times are visible on the offers. An innovative supplier approach is a strategic action for your supplier management.

E-procurement to save time

Time is of the essence for SMEs. The slightest slowdown in activity is likely to lead to a reduction in profits. That’s why they are so focused on commercial management. One of the advantages of e-procurement is that it minimises the time spent on each stage of the purchasing process:

• View several offers at a glance,
• A digital purchasing validation circuit,
• Optimised order management and automated processing,
• Faster reconciliation of supplier invoices and purchase orders.

These actions, which used to require countless inefficient and unproductive steps, can now be carried out in a matter of seconds using e-procurement. Thanks to this time saving, the company’spurchasing process canthen be optimised. Purchases can be made in record time if you use an online service, which is a great advantage.

Save money with e-procurement

A major advantage for companies’ purchasing strategy is the financial aspect of this type of tool. In addition to saving a great deal of time, e-procurement limits overspending and helps tooptimise expenditure. On the other hand, the traditional process of validating orders can generate significant operating costs. That’s why the cost of placing an order is the management indicator that effectively measures the profitability of such a process.

This is as beneficial for the supplier as it is for the company requesting its services. With e-procurement, it is possible to limit expenditure on this aspect in particular. If an office supplies budget is defined for a given period, for example, then it cannot be exceeded. These are all control milestones that make it possible toanticipate rather than repair. Class C purchases are the most likely toresult in uncontrolled expenditure. Thanks to e-procurement, this is now faster and more efficient. Where conventional procurement would have involved time-consuming action over several days or even weeks, the e-procurement service makes it possible in a matter of minutes. The time saved is a win-win situation.

For the company, the aim is to minimise the management of expenses linked to supplier relations and their administration. The purchasing company benefits from being able to take a step back from the movements made and to identify the levers of performance. It can then plan to make sales more quickly and naturally turn towards new markets.

E-procurement is a service that has had a major impact on corporate purchasing. If companies use this service properly, they canoptimise their procurement process in the right way. Thanks to Weproc, you can gain a better understanding of all aspects of e-procurement, and the benefits for your purchasing function will quickly become apparent.

Want to learn more about our procurement management software Weproc? Contact us or request your free 15-minutes demo below!

Team Weproc

Weproc is a SaaS software specialized in digitizing the procurement process of companies. From purchase requests to supplier invoicing, through the validation process, Weproc is designed to simplify the purchase management of SMEs and mid-sized companies by centralizing all purchase-related activities.