What Has Changed Recently With Procurement?
Any business organization will need materials for the production of good and services to its clients. For this reason, businesses will need a constant supply of materials to ensure that their production does not stop. This is why most business organizations have created procurement department. Procurement department deals with the purchases of materials that the organization need. The procurement department can order for any raw material that the business will need on behalf of the entire organization. In the past the procurement process used to be manual, where the organization’s procurement team would go to the market and look for a supplier or announce a tender before selecting the supplier. But today with digital procurement, the firm can order for the materials from the available suppliers online with the help of e-procurement software. The invention of digital procurement has a lot of advantages to organizations which use them. This article discusses some of the advantages as follows.
The first benefit of procurement is that it is fast when compared the tradition method of procurement. With e-procurement, an organization can make an order for the supply of goods and services without moving around in the market or announcing a tender looking for a potential supplier. With digital procurement process, everything is done electronically, you can check the status of the supplier online if the supplier meets all requirements then you place your order with the supplier and goods will be delivered fast. After or before the goods reach your company, an invoice is usually sent electronically for confirmation before you make payments. This process happens very fast as capered to the old fashion procurement process.
The second benefit of using e-procurement method is that it is less prone to error, and detecting and correcting the errors are fast and possible. With digital procurement method, the invoices are sent electronically so making an error in the first place is difficult and if an error has occurred detecting the error and correcting it is possible and very fast. But with the old fashion procurement method, the invoice was written on the paper with could even get lost on the way, this method was also prone to a lot of errors which detecting and correcting were difficult.
The third benefit of digital procurement is that it is cost-effective. The third merit of e-procurement method is that it is less costly. The only thing you need to start digital procurement is to install the e-procurement software, which is not expensive. This less expensing when compared to the cost the organization will incur if it had to announce for tender in different newspapers and media houses.
These are the merits of digital procurement methods.