eProcurement

How does eProcurement work?

eProcurement is designed to streamline the regular procurement process. Instead of manually doing things such as exchanging contracts, sending out tender documents and filling out supplier onboarding questionnaires, the entire process is automated. It also blends elements of procurement and finance to streamline operations between the two.

Here are the key components of an eProcurement solution:

Supplier management – refers to a buying organisation administrating suppliers’ information, interactions, performance and relationships. Supplier management involves gaining complete visibility on the information, interactions and ongoing performance of an entire supplier database.
Supplier Management is typically comprised of two elements – Supplier Relationship Management (SRM) and Supplier Information Management (SIM).
Source-to-contract (S2C) – details the end-to-end process an organisation undertakes when identifying and sourcing products or services. S2C deals with strategic sourcing activities and managing contracts and it is usually comprised of eSourcing (eAuctions and eTenders) and contract management.

Purchase to pay (P2P) – describes the end-to-end process of ordering a product or service from a supplier, through to the organisation making a payment of services rendered.

P2P is made up of product ordering, supplier requisitions, budget authorisation, receipting of delivery and invoice processing. P2P software improve efficiency, savings, spend management and transparency across the entire purchasing lifecycle.

Analytics – most tools used in businesses use some sort of analytics platform and eProcurement is no exception. Typically, analytics allow procurement and finance professionals to view and take corrective measures for spend across the whole business. This is usually achieved with easily configurable dashboards, giving decision makers what they need to make informed decisions