3 Steps to Optimize Your E-Procurement Process

eprocurement process

While today’s technology has considerably improved procurement procedures, there is still a right and wrong strategy to set up an e-procurement operation. Things may go extremely wrong behind the curtain. Novice managers who use poor strategies can greatly elevate risks.

Using wrong approaches in e-procurement can lead to data collection errors, inadequate supply, and unsuitable vendors. You need to make some changes to minimize these issues and simplify the e-procurement process. We’ve listed the top three here.

Photo by Andrew Ling on Unsplash 

Find Better Vendors with E-Catalogs

This is significant for several reasons. First, choosing a supplier or vendor is a very complicated process that requires various techniques.

E-procurement, on the other hand, may make this process simpler. For instance, you can find, choose, and contact suppliers more quickly, conveniently, and effectively by using electronic catalogs. Therefore, electronic catalogs can help you research and narrow down your list of vendors.

Additionally, as the selection and research processes get more efficient, this can help you improve supplier management. You need to sustain the relationship so that it can grow and flourish. This enables you to adopt a more proactive approach and assign secondary contracts to other suppliers.

Use The Right Tools

Modern e-procurement solutions can use sophisticated analytics by implementing machine learning and mathematical modeling. However, the most effective method is to be more flexible and deal with issues and incidents as they come up.

This will surely prepare you for the initial implementation phase: Making sure that your suppliers are adopting Industry 4.0 and utilizing their own real-time data systems. Afterward, you need to combine various data streams and use analytics tools that can identify vital supply trends.

You can use this data to monitor the latest events and their timing. This kind of predictive modeling can help you find better solutions to any potential problem.

Close Contracts as the Job is Done

There will very certainly be both long-term and short-term partnerships with suppliers. Regardless, you should close out the contracts as soon as the project is completed. Using digital tools and e-procurement frameworks can help here because you need a set of regulations regarding the close-out process.

By implementing the e-procurement strategy effectively and preparing your team, you can streamline your operations across different departments.

Bottom Line

It may not be easy to oversee every step of the e-procurement process. There are usually many challenges that a company cannot overcome on its own. Using the three tips above can solve a big portion of the problem. However, a more effective approach would be to work with a reliable e-procurement partner.

The ideal partner for your business is one with a wide range of solutions and tools that can be tailored to your specific operational needs and your budget. Luckily, we at Penny offer all of that and more to help you stay ahead of the curve. Just contact us, and let’s get started!



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Frequently Asked Questions

Penny is a cloud-based Procure-To-Pay system. penny helps you digitize and manage your full procurement cycle from request to approval. Manage RFQs to vendors, compare quotations, send POs and even payment. penny was designed to make things easy and consolidate all of your organization’s spending needs into one intelligent system.

  • Allocate, manage and monitor budgets by expense accounts, projects, departments, location, teams..etc 
  • Streamlining procurement means requests, approvals, and POs won’t be lost in emails or offline.  
  • History and records of requests and purchases can be extracted and tracked easily via the platform. 
  • Product requests are more accurate through the catalog, and hence avoid purchasing mistakes.
  • Reports and analysis can be extracted from the platform, giving you a consolidated data center for all your procurement activities.
  • penny is cloud-based and an easy to use platform. The action-board gives your team a user-friendly and simple experience.

Yes, penny is designed to handle complex procurement operations. We make EVERYTHING simple. Via the contract management feature, you can set the terms and conditions of your contract, and the system will recognize the products and the vendors of your request and match it with specified terms of your contract. Easy.

Putting you in control of your spending is integral to our mission. penny allows you to create Expense Accounts that match your P&L, and assign budgets to them. For example, you can assign $X for your “Travel Budget” and reflect on the budget before approving a travel request. In addition, penny allows you to set budgets for cost centers like projects, departments, locations, and so much more. With penny, you can extract reports and view your spend per Expense Accounts or cost center.

Yes. If your product search finds no results, you can submit a non-standard request.

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