E-procurement, also known as electronic procurement, refers to the use of technology to automate and streamline procurement processes, such as sourcing, purchase orders, invoicing, and payments. E-procurement can provide a wide range of benefits for organizations, but it also comes with its own set of challenges.
- Cost savings: E-procurement can help organizations reduce costs by automating and streamlining procurement processes, such as sourcing and purchase order management. According to a study by the Aberdeen Group, companies that use e-procurement achieve, on average, 12% lower costs than those that do not. FactWise enables teams to increase savings up to 25% using analytics and supplier diversity.
- Increased efficiency: E-procurement can help organizations increase efficiency by automating and streamlining procurement processes, such as invoicing and payments. This can help organizations save time and reduce the risk of errors. FactWise can increase efficiency by up to 31% using automation and analytics.
- Improved supplier performance: E-procurement can help organizations improve supplier performance by providing real-time visibility into supplier performance, such as on-time delivery and quality. This can help organizations make better decisions about which suppliers to continue doing business with. FactWise offers a comprehensive suite of analytics into vendor performance to help buyers make data-driven decisions and work closely with vendors to address issues.
- Better compliance: E-procurement can help organizations comply with laws and regulations related to procurement, such as the Federal Acquisition Regulation (FAR) and the Small Business Administration (SBA) rules.
- Better collaboration: E-procurement can help organizations collaborate more effectively with suppliers, vendors and internal stakeholders. This can help organizations make better decisions about sourcing, purchase orders, invoicing and payments. With FactWise, teams no longer need to individually update all stakeholders – our smart dashboards send succinct notifications and warnings for all procurement activities and issue reminders to ensure accurate RfX management and accurate, on-time payments accounting for rejected quantities in GR and QC stages.
- Implementation costs: Implementing e-procurement can be costly, as organizations need to invest in software, hardware, and training. According to a study by the National Small Business Association, small businesses often struggle with the costs associated with implementing e-procurement. Fortunately, FactWise is a plug-and-play solution that can start generating value for teams from day 1 while we integrate with your other third-party systems within a couple of weeks.
- Resistance to change: E-procurement can be met with resistance from employees who are used to traditional procurement processes. This can make it difficult for organizations to fully realize the benefits of e-procurement. FactWise minimizes dependence on email, phone calls, and Excel, to offer a minimal, intuitive interface that is built for self-serve, is consistently rated as among the easiest to adopt in the industry, and delights users.
- Data security: E-procurement requires the sharing of sensitive information, such as purchase orders and invoices, between organizations and their suppliers. This can raise security concerns and organizations need to ensure that they have adequate data security measures in place. FactWise is GDPR compliant.
- Integration: E-procurement systems often need to be integrated with existing systems and processes, such as accounting and inventory management systems. This can be challenging and requires a high degree of expertise. FactWise uses Open APIs that enable us to integrate seamlessly with your other systems within days, and maintain a single source of truth across complex operational workflows and systems.
- Limited Supplier Adoption: Some suppliers may not be able to use e-procurement systems or may not be willing to use them. This can limit the benefits of e-procurement for an organization. FactWise has a suite of compelling features for suppliers too – the platform is free of cost for vendors, invoice creation is automated, RfX management is simplified, and vendor catalogues are available to more buyers than they previously worked with. We are committed to generating win-win solutions for both buyers and sellers.
In summary, organizations need to weigh the benefits and challenges carefully and ensure that they have the resources and expertise to implement and maintain e-procurement systems. At FactWise, our singular mission is to delight users and provide sustainable positive impact to the organizations we serve.