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procurement service provider

What’s An E-Procurement Service Provider?

Most procurement teams are currently fighting to keep up with rising market volatility and maintain a competitive advantage. However, the majority of businesses are still utilizing older, legacy ERP systems, which are falling behind the competition.

On the other hand, e-procurement service providers on the market help companies across various industries meet their policy requirements, scale, and grow. Of course, some business owners are still unsure how an e-procurement service provider can help them. We’ll provide the answer right here in this article. 

Photo by Campaign Creators on Unsplash 

1. Infrastructure

When it comes to adopting e-procurement solutions, lots of companies tend to opt for an in-house operation in the hopes of saving money and time. However, they don’t realize they need to set up the infrastructure and equipment necessary for the whole thing to work. Needless to say, that takes a lot of resources, effort, and time. This is where an e-procurement service provider comes in and offers all of that at a drastically lower price. 

2. Expertise

Even if companies manage to successfully establish, test, and try their infrastructure, they still need to either train their existing team or bring external professionals. The first approach will cost a lot of money and time to train people who already have plenty on their plates. The second approach will also prove expensive because these experts need to be present continuously. Again, an e-procurement service provider can solve all of those problems at once by offering a reliable e-procurement solution that works 24/7. 

3. Risk Management

Procurement managers struggle to figure out how to manage costs and reduce risks while dealing with an old-fashioned procurement system.

Teams must abandon outmoded, manual processes that lack the authority and control necessary to generate efficient cost reductions to address this issue.

For many, the pandemic has been a massive issue. It has put many companies in jeopardy, with a lot of firms having gone out of business.

4. Avoid Invoicing Errors

One of the most difficult tasks in the procurement process is matching an invoice with the supporting documents. An invoice’s details and specifications must match those on the customer order and the receipt note.

Furthermore, the invoice’s descriptions and per-unit price must match the customer order and the actual items delivered. While three-way matching can be done manually, an e-procurement solution can automate the entire process and save a lot of money and time.

Bottom Line

As noted before, today’s high-tech market leaves players no choice but to either be left behind or keep up with the flow by using automated e-procurement solutions. That’s what e-procurement service providers like Penny can accomplish for you and any other business. All you need to do is to contact us and let us provide a tailored solution that perfectly fits your budget and objectives.

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