fbpx

What is eProcurement?

by | Nov 22, 2019 | Procurement and Contracting | 1 comment

What is eProcurement?

Imagine if you could use technology to automate the whole procurement process. Now imagine that the same technology could also detect fraudulent spend, process purchase orders and target new methods of cost reduction.

This is possible with eProcurement technology.

eProcurement solutions have been around for a few years now, but they have rapidly evolved to become a valuable tool for procurement leaders and their organisations, including developments such as blockchain, IoT and automation.

Here’s what you need to know about eProcurement.

What is eProcurement?

eProcurement is the automation of procurement processes typically using web-based software, or software-as-a-service (SaaS). The goal is to remove the administrative burden associated with bids, tenders and procurement requests, and managing suppliers.

eProcurement typically covers the end-to-end process from the decision to make a purchase, through the selection of the products or services, order approval, invoicing, delivery and more.

How eProcurement technology is evolving

As we head into 2020, procurement technology solutions are enabling more strategy and risk control to align with the changing values of procurement leaders.

Some technology providers are creating fully digital procure-to-pay options and are even using artificial intelligence (AI) to process purchase orders and detect fraudulent spend.

Advantages of Procurement Technology 

Procurement technology is not about replacing your team, but enhancing their capabilities and adding value to the procurement function, and the organisation as a whole.

Let’s take a look at the three key advantages: 

  1. eProcurement unlocks valuable data and insights

Data analytics is one of the top benefits of procurement technology. It enables you to collect and analyse procurement data to draw out meaningful insights and make smarter business decisions.

With AI, the predictive capability of data analytics also allows organisations to manage costs and supplier relationships too.

With analytics, you can evaluable payment accuracy, identify mistaken payments and even reduce fraud. Additionally, you can use it to identify new opportunities for sustainable procurement, predict future demands and track spend.

  1. It’s easier to manage suppliers.

Some platforms are designed to specifically provide buyers and suppliers with visibility into all elements of their joint value chains. This enables you to maintain supplier information in the cloud, as well as measure, analyse, and manage supplier performance.

The potential for better supplier management is huge – it can uncover joint process improvement opportunities, enable supplier-enabled innovation, and identify supplier risks. 

  1. Procurement automates manual tasks to save time and costs.

Nearly two-thirds of procurement leaders say automation as a key priority – and it’s not surprising when you look at the benefits. Procurement technology can automate manual, repetitive and low-value procurement tasks to ensure your team are free for higher value work. It also provides organisations with an easier way to manage the masses of information involved in the procurement process.

The bottom line? With technology, procurement becomes more nimble and agile, which saves on costs and resources.

Conclusion

Over the next 10 years, technology will cause procurement to be unrecognisable in many ways. Technologies are opening up new ways for procurement to respond to the needs of consumers, suppliers and the business as a whole.

Investing in the right procurement technology will lead to increased efficiency and productivity, as well as enable you to predict future trends and set up your organisation for success.

Digital transformation is one of the trends we highlighted for 2019 – learn about more trends in procurement.

1 Comment

  1. Reyna Warrick

    Hi! Thanks for this info! Excellent article.

    Reply

Submit a Comment

Your email address will not be published. Required fields are marked *

Recent Blog Posts Testimonials

“The most practical and well organised course I’ve been involved with, perfect for anyone with a demanding full time career and family commitments. My facilitator was extremely helpful and being part of the construction industry applied a very focused approach to the course content which assisted me in completing my studies, Would strongly and have already recommended Transformed to those looking to complete their Cert IV and Diploma in Building and Construction. Thanks for all your efforts and support.”

Aleks Petrovic
Cert IV and Diploma in Building and Construction Student

“I also want to take the opportunity to thank you for all your help during my studies. I think your training company is very professional and I would endorse you and Transformed to anyone looking to study distance learning”

Doug Madarovski

“I’m extremely impressed by The Cert IV in HEES delivered by Transformed. It is a fantastic, relevant, and interesting course with great content. The study materials and assistance have been exceptional. Thanks again to Transformed for their support”.

Matt Wade
Cert IV in HEES Student – April 2022.

“Just wanted to say thanks for putting up with me and getting me over the line!! Which I know was a bit difficult with no background in the industry!! Thanks very much and I look forward to starting my business and conquering the world as an Energy Rater!”

Laura Lace

“Don has been a terrific teacher and very prompt with feedback throughout the whole diploma, which has been great!”

Anna
Diploma of PM

“The excellent and prompt communication from my assessor”

Cert IV in NatHERS Assessment student

“Working at my own pace online and the response time to emails and responses were always great”

Ekaterina Sidorova
Lend Lease

“Easy to deal with”

Laura Lace

“Learning – I have now fine-tuned my existing skills”

Brian Peterson
Moreton Bay Regional Council

“I want to thank you for providing that encouragement and feed back at appropriate times. You make me and I’m sure all students, feel special and like we are getting personal assistance, which I have received. I don’t know how you manage all that you do but you do it well. Thank you”

Darrell
Cert IV in NatHERS Assessment student

“My assessor was absolutely fantastic and I couldn’t have achieved this without her encouragement and guidance’.

Simone
Cert IV in Procurement & Contracting - March 2022

“I found the course easy to follow and navigate through. I would recommend this course to others”

Ekan
August 2018

“All round I’ve been really impressed with how professional everyone at Transformed has been”

Anna
Diploma of PM

“…I originally enrolled in Transformed’s Diploma of Project Management on the basis of their flexibility. ..As I subsequently discovered, Transformed’s approach extends even further to include ‘one on one’ coaching sessions… and adjusting the training to fit in with the client..”

Michael Irwin
Austrade

“I am so appreciative of you and Transformed for your flexibility and support- THANK YOU”

Louise Anderson
Cert IV in P & C student - May 2020

“I engaged Michael Young from Transformed to assess me for the Australian Institute of Project Management Certified Practicing Project Manager. I wanted to be certified as I wanted to verify that the skills and knowledge was in line with industry best-practice. At first it seemed a bit daunting, however, Michael made the process very easy, providing templates for references and self-assessment as well as providing a list of the project management documents I would need to provide as evidence. The assessment interview was very relaxed and more like a conversation than an assessment, which brought out the best experiences to evidence my capabilities. Because of Michael’s current government security clearance, we were able to look at specific of particular projects, rather me than having to spend a heap of time sanitising documents. Since the assessment, I have been successful in gaining a promotion..”

Mike McCarthy

“The course is really well organised, your videos and zoom meetings were extremely helpful, the platform functions perfectly, your response time to queries and questions is always prompt and overall it is just been a wonderful experience”

Melanie
Cert IV in HEES student, July 2021.

“Always good and prompt feedback from Michael”

John Logan
Draft Comps Services

“Ease of delivery, completing from work”

Simone
Qld Health

“I am very satisfy with the study”

Eric Lam

“The self-paced learning it allowed me to work whilst studying”

Haylea Edwards
Efficient Living

“I think everything worked very smoothly”

Susan Mariott
Quality Home Design and Drafting Service

“Just wanted to say thank you so much for offering such a great course, I have really enjoyed studying my Certificate IV in Home Energy Efficiency and Sustainability with Transformed”.

Melanie
Cert IV in HEES student, July 2021

“Phenomenal course to understand contract management in the best way possible. I am working as a Procurement Manager and never understood contract part completely but this course helped me to understand key points of contract management. Thanks to author for creating this wonderful course. ”

Nitin
Student - Introduction to Contract Management - August 2021

“Thanks for your support over the years and I look forward to doing more courses at Transformed in the future”.

Gerard
Cert IV in HEES - March 2022
Recent CommentsArchives