What is eProcurement?
eProcurement, also known as electronic procurement or supplier exchange, is the purchase and sale of supplies, equipment, works and services through a web interface or other networked system.
The technology is designed to centralise and automate interactions between an organisation, customers, and other value chain partners to improve speed and efficiency of procurement practices.
It boasts a suite of innovative features – all designed to bolster the efficiency, effectiveness and total cost of procurement.
eProcurement started in the 1980s, when electronic data interchange (EDI) was developed. EDI allows files and documents to be shared between people in business and, at the time, it was revolutionary. Businesses no longer had to physically send documents, as instead they could be sent electronically.
In the context of procurement EDI, allowed customer and suppliers to send and receive purchase orders and invoices using call-forward networks, which was eventually superseded by email.
Later in the 1990s EDI was improved as organisations developed specialised online catalogues, specifically for vendors.
In its modern guise eProcurement involves, activities related to evaluating and selecting suppliers, such as eAuctions and eTenders, as well as what you need to purchase from these vendors, including electronic orders and supplier catalogues.
Benefits of eProcurement
eProcurement offers significant benefits for your organisation and the most common are listed below:
- Automates laborious tasks – tasks such as auctioning orders and document management for purchase orders, evaluating and selecting suppliers, price negotiations, agree and storing supplier contracts and more can all be automated between an organisation and its suppliers to increase the speed you do business, freeing up staff for other tasks
- Improved workflows for procurement – this enables end-user self-service and decentralisation with control through company-approved catalogues, and more frictionless processing of employee requisitions (the ordering of goods and services) and supplier payments
- Visibility of your purchasing behaviours – eProcurement will give your organisation visibility into what it spends. This data is invaluable and will help you control things such as non-compliant (or maverick) spend , identify areas for consolidation of suppliers, or to leverage buying power to negotiate cost savings
- Connecting to external supply chains and ERP – Realtime information can be shared between ERP or finance systems and supply chains for better overall visibility of supplier information and supplier transactions
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.
About Wax Digital
There are many eProcurement solutions available from numerous suppliers, and web3 the eProcurement tool, supplied by us, Wax Digital, is just one of them.
We’re a leading SaaS and eProcurement specialist based in the UK and we’ve earned a reputation for being a company that put the customer at the heart of everything we do.
Here are just four ways we’re uniquely positioned to improve your procurement processes:
- Gartner ‘Visionary’ company – we’ve been identified as a ‘Visionary’ on the latest Magic Quadrant report for Procure-to-Pay Suites (also known as purchase-to-pay) – which we feel demonstrates the ongoing excellence and development of our eProcurement solution.
- 98% client retention – we have long-standing relationships with our clients, who have continued to work and grow with us over many years. Our customers come to consider us as their go-to expert in everything procurement-related and value our expertise and support.
- £23bn of spend under management – totalling everything that goes through web3, courtesy of our clients, we manage over £23bn of spend, illustrating the scope and scale of our solutions.
- Powering trade in 102 countries – Wax Digital powers procurement for organisations in 102 countries. web3 is available in 15 languages including English, Chinese (simplified), Dutch, Spanish and German. Web3 is also used by over 260,000 users worldwide.
Find out more
For more information about eProcurement, and how web3, the innovative eProcurement software can help your business, follow this link.