Buyers of e-procurement are looking forward to reduced inventories, lower procurement costs, lower product costs, shorter procurement cycle-time, higher (internal) customer satisfaction and higher value-add from procurement professionals. Suppliers of systems and services promise those benefits plus secondary cost reductions and efficiency improvements in enabling organizations as Finance and Inventory Control. Following is a compilation of benefits derived from case studies and supplier references.
Accounts Payable: obtained increased efficiency through reduced matching work, automated payment vouching and reduced invoice errors.
Treasury: reduced cash requirements through increase predictability.
Project Accounting: efficiency improved through automated posting of purchases and costs.
General Accounting: improved performance from automated invoice remittance, reduced use of general journal entries and more efficient audit and control activities.
Budget Performance: improved by including committed costs as they are recorded.
Receiving Department: efficiency improved as a result of less frequent matching problems and automated recipient locations as well as from being able to predict future workloads.
Inventory and Production Control: obtained higher accuracy and increased yield through more efficient inventory handling and production capacity.
Every business function that is involved in the procurement process from budgeting to requisition to receipt and payment must be engineered into a seamless system with an absolute minimum of inherent delays and maximum use of automated transaction handling.
About This Note
This Technology Note covering the e-procurement is presented in two parts. The first part covers:
1. The Promise of E-Procurement
2. E-Procurement Myths and Reality
3. Preparing for an E-Procurement Initiative
The second part covers:
4. E-Procurement Architecture
5. Selecting an E-Procurement Partner(s)
6. Implementing E-Procurement
E-procurement is an integrated system of services and technologies that provides a seamless bridge between buying and selling businesses. The e-procurement process begins at the planning stages within the buying company and extends through to the delivery and collections services of the selling company and the receipt and payment services of the buying company. E-procurement shatters walls, enhances controls, and eliminates time delays in the requisition to receipt process.
Accounts Payable: obtained increased efficiency through reduced matching work, automated payment vouching and reduced invoice errors.
Treasury: reduced cash requirements through increase predictability.
Project Accounting: efficiency improved through automated posting of purchases and costs.
General Accounting: improved performance from automated invoice remittance, reduced use of general journal entries and more efficient audit and control activities.
Budget Performance: improved by including committed costs as they are recorded.
Receiving Department: efficiency improved as a result of less frequent matching problems and automated recipient locations as well as from being able to predict future workloads.
Inventory and Production Control: obtained higher accuracy and increased yield through more efficient inventory handling and production capacity.
Every business function that is involved in the procurement process from budgeting to requisition to receipt and payment must be engineered into a seamless system with an absolute minimum of inherent delays and maximum use of automated transaction handling.
About This Note
This Technology Note covering the e-procurement is presented in two parts. The first part covers:
1. The Promise of E-Procurement
2. E-Procurement Myths and Reality
3. Preparing for an E-Procurement Initiative
The second part covers:
4. E-Procurement Architecture
5. Selecting an E-Procurement Partner(s)
6. Implementing E-Procurement
E-procurement is an integrated system of services and technologies that provides a seamless bridge between buying and selling businesses. The e-procurement process begins at the planning stages within the buying company and extends through to the delivery and collections services of the selling company and the receipt and payment services of the buying company. E-procurement shatters walls, enhances controls, and eliminates time delays in the requisition to receipt process.
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