What is e procurement and what are the advantages of e procurement?

When it comes to procurement, many people know about it, but I believe that many people don't know much about e-procurement. Today, Chengyi Technology (DSP digital service platform) will take you to understand what e-procurement is and what are the advantages of e-procurement.

E-procurement is a kind of procurement behavior initiated by the purchaser, which is a kind of online transaction without meeting, such as online bidding, online bidding, online negotiation, etc. It is the act of purchasing and selling goods and services between enterprises through the Internet, and it is also the behavior of many B2B**.

an important component.

Advantages: 1. Save costs 2. Improve efficiency 3. Reduce inventory, there are cases to prove that after the use of electronic procurement, the procurement cost of enterprises has decreased, the inventory area has been reduced by half, the inventory capital has been reduced, and the inventory capital turnover date has also decreased in the same period 4. Optimize the process and design the procurement process according to scientific methods.

Make it more conducive to the development of enterprises 5, information sharing, enterprises and businessmen can share information, can query relevant procurement information, is conducive to buyers and sellers to better promote transactions 6, businessmen benefit, this is the most profitable, businessmen can learn more about the market through electronic procurement, increase more opportunities to contact buyers, and get more opportunities.

E-procurement, better known as an organization's use of the internet (and sometimes an intranet), to procure goods and services needed for operations. Paper-based processes are replaced by fully electronic (ideally automated) workflows that streamline all aspects of the procurement process.

What are the main functions of e-procurement?

The main function of e-procurement involves all aspects of the organization, touching and benefiting all parts of the company's day-to-day operations and **chain activities. Here are the key features of eProcurement:

Automate manual processes that save time and reduce carelessness and human error.

Streamline the procurement process with contactless processes, advanced technology, and compliance steps.

Provide a centralized monitoring platform for employees and stakeholders to optimize procurement performance.

Allows for streamlined negotiations between multiple partners and stakeholders.

What are the main benefits of e-procurement?

The digitization of the process eliminates many manual steps, speeds up workflows and reduces careless errors. In organizations, digitalization alone can reduce processing costs by up to 70%. But savings aren't the only thing an eProcurement solution can offer.

When organizations truly adopt eProcurement solutions and gain 100% of users, procurement compliance increases tenfold, more spend is managed, and better goods and services can be negotiated with strategic vendors. In addition, e-procurement can:

Control Abnormal Purchases.

Increase overall transaction speed.

Standardize the procurement experience.

Fraud prevention. Provides 100% visibility into consumption.

Offload routine tasks and allow procurement teams to focus on strategic initiatives.

The first step in making eProcurement work in your business is to select and implement an eProcurement solution. From demand to delivery, 8Manage SRM can closely track and manage every step of the procurement process, supporting the following processes:

Purchase requisition: Create a purchase requisition and send it for approval.

Purchase approval: After the approval is passed, the purchase order is sent to the corresponding merchant. Once accepted, the purchase order becomes a legal contract.

Order fulfillment: Set a shipping plan as needed and support bulk shipments.

Order Invoice: Automatically generate a purchase invoice on the Approved Purchase Orders page and send it to the person in charge of purchasing.

Order payment: Set up payment schedules on demand, support installment payments, and generate sales orders based on payment schedules and receipts and make payments accordingly.

Digital tools can make procurement spending more effective because it will be more evidence-oriented, transparent, simplified, optimized, and adapted to market conditions.

What is e-procurement?

E-procurement refers to the process of buying and selling goods and services on the internet. It differs from e-commerce in that e-procurement uses a closed system of merchants, which is usually only available to registered users.

When implemented correctly, eProcurement can create direct connections and facilitate interactions, such as bidding, ordering, and emailing, opening up lines of communication between companies and merchants.

Advantages of e-procurement.

With this streamlined procurement process, you can gain a profitable advantage.

First, your procurement system is now automated. You don't have to execute duplicate purchase orders. Your company can invest time in developing strategies that will boost business revenue.

You can also save on procurement costs by limiting paper usage. In other words, you have implemented an eco-friendly procurement process.

You can control the quality of the inventory you buy, as every descriptive information can be seen in the catalog. This is possible because the software enables purchasing managers to conduct research on the specifications and quality of goods.

What is e-procurement?

The procurement process is supported with appropriate networks, collaborative technology to facilitate the full lifecycle of the procurement process for buyers and buyers. This usually takes the form of real-time dynamic negotiations, where buyers and a group of pre-qualified merchants compete with each other through the use of a B2B sourcing platform to win buyers.

Advantages of e-procurement.

The reason e-procurement has become so common is that, like many other areas of activity, the internet has brought buyers and merchants closer together, facilitating cost reductions, better communication, and more efficient processes.

Reduce costs

While saving money is only one aspect of good procurement practices, it is a major driver of e-procurement. Being able to reach a wider range of bidders, and the different bidding methods facilitated by the system, can provide buyers with incredibly successful results – the UK's recently conducted e-auction saved over 59% on mobile.

The e-procurement system also speeds up the procurement process – reducing the total time spent in the bidding process and the time that procurement managers spend on tenders – freeing up valuable time for them to focus on strategic activities.

In addition, the process efficiencies brought about by these systems reduce costs for both buyers and sellers, especially printing and paper costs.

Improve business relations

E-procurement can greatly improve the transparency and openness between buyers and merchants. The system provides a portal through which the vendor can see all of the vendor's bidding opportunities, with a clear list of deadlines, current status, and final results.

Fast communication and effective feedback are ensured through systematic interaction – so the business owner is always aware of the current situation.

E-procurement reduces geographical boundaries and coupled with clear tender announcements, allowing suppliers to effectively participate in more opportunities. This gives buyers the potential to develop relationships with companies that may have previously been an obstacle.

Improve or close rubber compliance and reduce risk

A systematic approach to the e-procurement process provides companies with control over their bidding process and provides an audit trail for compliance purposes.

It refers to the electronic purchase process of goods and services, including the whole process from the identification of procurement needs to the payment of procurement loans, and also covers activities such as delayed payment, such as contract management, business management and development, etc. Electronic procurement (e-procurement) is a kind of procurement behavior initiated by the purchaser, which is a kind of online transaction without meeting, such as online bidding, online bidding, online negotiation, etc. This kind of bidding, bidding, negotiation and other activities carried out between enterprises on the Internet are defined as B2B e-commerce, in fact, this is only one component of e-procurement. Electronic procurement than the general e-commerce and general procurement in essence has more concept extension, it not only completes the procurement behavior, but also the use of information and network technology to manage all aspects of the procurement process, effectively integrate the resources of the enterprise, help the supply and demand sides to reduce costs, improve the core competitiveness of the enterprise.

It can be said that the electronic procurement of enterprises is an indispensable and important part of the informatization of enterprise operations. The advantages of e-procurement, which frees businesses from manual methods of buying and selling their products, are significant in their own right, as buyers and sellers connect electronically and business transactions become seamless.

E-procurement is the act of purchasing and selling goods and services between enterprises through the Internet. E-procurement is an important part of many B2B** balances. eProcurement is also sometimes referred to as a "supplier exchange".

In general, eProcurement** allows qualified and registered users to access information about the goods and services of both the buyer and the seller. In this way, buyers and sellers can draw up a ** or conduct a tender, and a transaction can be started or completed. Ongoing buying activities can qualify customers for bulk discounts or discounts.

The disadvantages of the lack of ruler pure dots are as follows:1. Fundamentally change the traditional procurement mode of the enterprise and improve the efficiency of the enterprise. Traditional procurement is all text-only work, which takes a lot of time and has a small scope of transactions.

3. Expand the scope of transactions.

4. Improve the profitability of the overall ** chain.

Due to the reduction of uncertainty and the dynamic communication between the members of the chain, the overall inventory level on the chain is greatly reduced, which reduces the total cost of the chain and therefore improves the profitability of the chain.

The information advantage of e-procurement can not only greatly improve the efficiency of procurement, but also help to supervise the implementation of procurement policies, so as to enhance the openness, transparency and credibility of procurement operations.

It is also generally believed in the industry that in addition to providing convenience for enterprises, electronic procurement can also make the procurement process more standardized and transparent, which helps to solve the chaos caused by human intervention. For example, many places have changed the original procurement mode of offline transactions of vertical and fixed-point procurement (agreement), and realized the online retention of the procurement process and transaction results, making the procurement process more standardized, the competition more sufficient, and the information more transparent. Some places have settled in the **business group on a large scale in the construction of **procurement network**, so that more enterprises can participate.

However, e-procurement still faces some difficulties. How to further digitize the whole process and all links such as the signing and performance of procurement contracts, credit evaluation, and fund payment. It is a difficult point in the current procurement reform process.

Yu An believes that new technologies and new models are constantly updated and iterative. How to use them more effectively in the procurement process and accelerate the transition from electronic infrastructure to smart digitalization is also a difficult point.

ToCheck optimizes the algorithm for bidding documents and provides text error correction functions, which does not let go of clues, and finds suspected plagiarism, plagiarism, collusion and bid-rigging for users, helping enterprises avoid risks.

1. What are the differences between e-commerce procurement and traditional procurement?

1. The differences between e-commerce procurement and traditional procurement include:

1) The nature is different. Online procurement refers to the whole process of publishing procurement information, opening bids online and announcing procurement results through the Internet;

2) In a different way. Online procurement adopts modern computer network technology, especially the application of the Internet, as a tool, and puts the information announcement, bid issuance, bidding, and bid awarding of procurement projects on the computer network, and the procurement-related data and information are electronic.

2. Legal basis: Article 12 of the Company Law of the People's Republic of China.

Scope of business] The company's business scope is stipulated by the articles of association and registered in accordance with the law. The company may amend its articles of association and change its business scope, but it shall go through the registration of the change.

The company's business scope is subject to approval in accordance with laws and administrative regulations, and shall be approved in accordance with the law.

2. What are the roles of e-commerce procurement?

The role of e-commerce procurement includes:

1. Greatly reduce the written documentation materials required for procurement, and reduce the dependence on traditional communication tools such as fax;

2. Improve the efficiency of procurement, reduce the cost of procurement, and use the characteristics of network openness to form the most effective competition for procurement projects and effectively ensure the quality of procurement;

3, can achieve electronic evaluation, to provide convenience for the evaluation of the work, due to the need to analyze, sort out and summarize a variety of electronic information, can promote the construction of informatization, can be more standardized procurement procedures operation and supervision;

4. Greatly reduce the human interference factors in the procurement process, more in line with the requirements of the information age for procurement, and promote the combination of procurement and e-commerce.

Electronic bidding and bidding is based on network technology, the traditional bidding, bidding, bid evaluation, contract and other business processes are all digital, networked, highly integrated new bidding methods, and has database management, information query and analysis functions, is a real sense of the whole process, all-round, paperless innovative procurement transaction mode.

Advantages of using e-tendering and procurement platform for enterprises:

Promote openness and transparency and achieve sunny operation.

All aspects involved in bidding activities (project registration, tender announcement release, prequalification, issuance of bidding documents, submission of bidding documents, bid opening, bid evaluation, bid publicity, etc.) can be carried out online, covering the whole process of bidding, and all parties involved in the transaction can log in to the online bidding management system to grasp and understand all kinds of public information related to it in real time, so as to realize the sunny operation of bidding and bidding, and avoid the black box operation caused by information asymmetry. At the same time, the use of layout file technology and asymmetric encryption technology can strengthen information security and confidentiality.

Reduce transaction costs and save social resources.

Online bidding and bidding can realize the whole process of paperless operation, save the cost of bidding, and at the same time, it can also avoid the cost of communication, transportation, printing, manpower, and other expenses of the clerk repeatedly going back and forth to the tenderer, regulatory agencies, trading centers, etc., and reduce the consumption of various resources. It has a certain role in promoting the conservation of social resources and the protection of the ecological environment.

Leave traces in the operation process and strengthen node monitoring.

The online bidding system can not only completely record the handling of matters in the whole process of bidding and the time nodes generated by the handling personnel, but also completely record all documents and materials; Moreover, with the function of "client log monitoring", construction, auditing, discipline inspection and other departments at all levels can directly conduct real-time supervision and follow-up inspection of all project bidding activities to ensure that the bidding supervision is timely, accurate and comprehensive. At the same time, the corresponding service process can be scientifically and reasonably solidified, especially for the best investment projects, which can standardize the work procedures and strengthen supervision and management.

Reduce human intervention and prevent the breeding of corruption.

The application of systems such as online registration, online pre-qualification, online Q&A, and remote bid evaluation by judges has greatly reduced the impact of human factors on the bidding results and reduced the impulse of bidding enterprises to pay bribes; Weaken the influence of the manager of the construction unit on the bid evaluation results, reduce the risk of corruption of the parties, and protect the parties of the construction unit; The list of judges is completely confidential, which reduces the possibility of manipulation of judges by all parties; The bidding units are scattered and contacted online, which can effectively realize the mutual confidentiality of the bidding units, making it difficult to achieve bid-rigging and collusion.

Raise the cost of violations and promote the establishment of creditworthiness.

The online bidding system is supported by the enterprise integrity database, and only bidders with good performance can be shortlisted, and the fraudulent enterprises will enter the blacklist database once confirmed, and cannot obtain the qualification for online registration; Through the evaluation and feedback of the bidder to the construction unit, the malicious arrears of the construction unit are effectively curbed, which helps to improve the integrity of the construction unit; Improve the evaluation system of judges, which is conducive to supervising the professional ability and ethics of judges.