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E-procurement: towards an optimal procurement process!

Need office supplies or a new office chair? Employees often order those themselves, either through their favorite online store or by making a quick phone call to the supplier. That seems very easy. But meanwhile the receipts, packing slips and invoices pile up. Before you know it, they get mixed up or lost. And the overview? That is hard to find. Many organizations struggle with streamlining their procurement processes. Fortunately, there is a solution: e-procurement. It gives you a grip on everything to do with ordering, delivery, approval and payment. Want to know what e-procurement entails and how you can benefit from it? We explain that in this blog post!

What exactly is e-procurement?

E-procurement encompasses your organization’s entire digital procurement process. It starts with the selection of suppliers and ends with the payment of invoices. So under the heading of ‘e-procurement’ there are quite a few processes. Some examples: ordering, contract management, matching and invoice approval.

If you set up e-procurement properly, the whole process will be coordinated. No more loose mails, paper receipts or (afterwards untraceable) phone calls. And therefore no more surprises in the accounts payable department because an employee ‘quickly’ ordered an item outside the system. In short, e-procurement helps you bring grip and structure to a comprehensive process that is traditionally quite fragmented!

Need office supplies or a new office chair? Employees often order those themselves, either through their favorite online store or by making a quick phone call to the supplier. That seems very easy. But meanwhile the receipts, packing slips and invoices pile up. Before you know it, they get mixed up or lost. And the overview? That is hard to find.

 

Many organizations struggle with streamlining their procurement processes. Fortunately, there is a solution: e-procurement. It allows you to get a handle on everything from ordering, delivery, approval and payment.

 

Want to know what e-procurement is all about and how you can benefit from it? We explain that in this blog post!

What if you don’t automate your procurement process?

Suppose an employee urgently needs an item. Because your organization has not automated the purchasing process, she cannot easily find your arrangements with suppliers. Therefore, she goes to a webshop she knows from her personal life. A large platform or a well-known chain, for example. A logical decision, because this is where she has had good experiences.

Shortly thereafter, the accounts payable department receives the invoice. Question marks abound because no one knows where this invoice came from. Who ordered this item? Who is this supplier? Is it a mistake? Or, even worse: scam?

To use some jargon for a moment, we also call this maverick buying. This involves employees making small purchases outside the organization’s purchasing procedures. An inefficient, time-consuming and costly process. After all, it involves a lot of manual research. Moreover, you don’t take full advantage of price agreements with your suppliers. The latter affects not only the costs, but also the relationships you maintain with your suppliers. Because employees keep ordering from different parties, you are not building solid or lasting relationships.

The conclusion? Without e-procurement, chaos and confusion quickly arise in financial administration. And you miss out on a lot of benefits.

A world of possibilities: what processes can you optimize?

 

1. Supplier selection and contract management.

Good agreements with suppliers are the foundation of e-procurement. Via contract management you record these. You link all information about articles, prices and delivery times to an internal catalog. So employees know exactly what they can order and where. Many systems also offer the ability to click through to a supplier’s website from there, so employees can place their order there. Once they have done so, they automatically return to your system. How convenient!

 

2. Order process and approval

When an employee selects an item in the internal catalog, the system automatically sends a notification to the budget holder. The latter can approve the request with a single click. Then the order goes directly to the supplier. Separate emails and separate approvals are unnecessary. All those involved know their role, making the process simple and clear.

 

3. Invoice matching and payments

After the employee places an order, the supplier sends an invoice. This arrives automatically in the system, which compares the data with the corresponding order. If the quantities and amounts differ, you will be notified. This allows you to make timely adjustments.

If there is a match, then it is really only a matter of waiting for the delivery. As soon as it arrives, the invoice can be paid automatically. Manual checks are thus a thing of the past!

 

4. Inventory management and repeat orders.

How many items are still in stock? Is a particular item about to run out? With e-procurement, you can keep track of this automatically. The system prompts you when it’s time to reorder.

Moreover, if you have purchased an item before, you can place a repeat order very easily. There is no need to re-enter all the details manually. Re-ordering is therefore quick and easy.

The benefits in a row: here’s how to benefit from e-procurement

  • Efficient and fast way of working
    Loose receipts and riddles around orders? You don’t have to worry about that anymore. With e-procurement, you save time and avoid mistakes.
  • More control, fewer errors
    Who ordered what from which supplier – and why? You can always answer that question. You have real-time insight into current orders, stocks and budgets. This gives you control over the entire procurement process, from order to payment. And because you automate many manual operations – such as invoice matching – you significantly reduce the error rate.
  • Save costs and strengthen supplier relationships
    Because you make smart use of price agreements and contracts, you always order according to the agreements made. This prevents expensive (rush) orders, which lead to chaos and increase the pressure on the financial administration. Moreover, you build strong relationships with your suppliers.
  • Continuity and clarity
    Is a particular employee on vacation? Or have you just hired someone who doesn’t yet know how the procurement process works? No problem. The system supports employees every step of the way.
  • Optimization opportunities through insight
    Data? You save it automatically. So you can run reports to analyze supplier performance. But you can also decide to take a closer look at invoice matching. How many matches were there in the past period? And what is causing the mismatches? By looking at things like this, you can further optimize your processes.

Want to know more?

Schedule your demo here!

Discover the benefits

  • Efficient and fast working method

  • More control, fewer errors

  • Strengthen supplier relationships

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Optimizing?

Are you curious about how to set up e-procurement smartly in your organization? Feel free to contact us. We are happy to discuss the possibilities with you.

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Schedule your demo

With a (web) demo, you can quickly and easily see what benefits our solution brings you.

This field is for validation purposes and should be left unchanged.

Schedule your demo

With a (web) demo, you can quickly and easily see what benefits our solution brings you.

This field is for validation purposes and should be left unchanged.

Schedule your demo

With a (web) demo, you can quickly and easily see what benefits our solution brings you.

This field is for validation purposes and should be left unchanged.

Schedule your demo

With a (web) demo, you can quickly and easily see what benefits our solution brings you.

This field is for validation purposes and should be left unchanged.