HomeIndustriesLearn What E-Procurement Is and Its Benefits for Business

Learn What E-Procurement Is and Its Benefits for Business

Procurement holds an important role in determining your business’s success. However, do you realize that the conventional procurement process has a lot of weaknesses that significantly affects your business? However, worry not, because e-procurement his now here to solve the issues.

As a part of technology innovation, e-procurement is designed to simplify procurement process. Let’s find out more about the e-procurement and learn its benefits!

Also read: Avoid These Mistakes if You Are a Purchasing Staff

Conventional Procurement

Before we explore more about e-procurement, we may want to look back to recognize what procurement is.

Procurement is an activity where a company purchases goods which will be used for the production process. This activity consists of several processes such as making inquiries, choosing the vendor, establishing purchasing term, selecting the goods, making contract, and the making payment.

The conventional procurement process requires coordination from a lot of people to handle piles of documents such purchase order, invoice, contract, delivery, receiving, and many more.

That type of procurement, whether you realize it or not, has weaknesses that hamper your business efficiency. Here are some of them:

  • The amount of piled documents
  • Repetitive order
  • The number of suppliers involved in the procurement
  • Inventory data inaccuracy due to human error
  • Neglected processes due to tendency of working on the emergency tasks
  • Validating process requires a lot of people from different levels
  • Prolonged execution time

If you experience those matters while running the procurement for your business, maybe it’s time to switch to the e-procurement.

How Does E-Procurement Work?

E-Procurement is a procurement process which is facilitated by an e-procurement software. The system in the process computerize all the procurement processes. Therefore, with minimizing the use of paper, e-procurement can reduce any error too.

In business, e-procurement is more than just online shopping. The e-procurement software automates all functions, procedures, and policies used by a company to manage the procurement process.

Here are how e-procurement facilitates procurement process:

Identifying the Inquiries

The first step of procurement process identifies what the goods required are. E-procurement will centralize this process in one database.

Hence, purchasing manager will have a clear insight of the remaining inventory, what to purchase, and determining budget.

The conventional procurement process will burn daylight because to identify the needs will require paper-based sheet calculation. The risk of not inputting the precise data is real.


In this step, validating means verifying in what vendors or supplier the inventory will be purchased. E-procurement stream-lines and accelerates this process. It will proceed the documents to be validated by the persons in charge.

The conventional procurement process usually consumes an abundant amount of paper containing documents that are needed to be signed. It often takes days because sometimes the persons in charge are not available for quite a time.


The system in e-procurement enables the ordering process. This system will automatically order the inquiries to the supplier or the vendors, according to the list of the required inventory.

If you do this process manually,  you have to send the order to the vendors or supplier one by one. Also, if there is no integration between the procurement process and other functions, it will cause inefficiency.


After completing the ordering, e-procurement allows the manager to track the inventory to acknowledge in what process they are. It is possible because the system presents real-time data from the suppliers or vendors.

Meanwhile, the conventional procurement process can only make the manager wait in uncertainty concerning the inventory order.


This last step of procurement can also be completed in the system because it also integrates the accounting function. At the same time, the supplier can create a valid invoice in the system.

The conventional procurement only allows the supplier to hand the valid invoice in person and this is very inefficient. The possibilities of the losing the invoice is there and it will impede your business.


Because the system records all the procurement activities, reporting will be much easier compared to the traditional procurement process.

All the data saved in the database can automatically generate analytical report automatically. The system uses the record regarding the employees, department, and supplier involved in the procurement process maximally to create assessment.

The Benefits of E-Procurement for Your Company

With this stream-line procurement process, you can gain profitable advantage from it.

First, your procurement system is now automatic. You don’t have to do a repetitive purchase order. Your company can invest the time to build strategy that can boost your business revenue.

You can also save procurement cost by limiting paper usage. In other words, you implement an eco-friendly procurement process.

You can control the quality of your purchased inventory because every descriptive information can be seen in the catalogue. It is possible because the software enables the procurement manager to do research about the goods specification and quality.


E-procurement is an innovation for a paper-based conventional procurement process. By applying e-procurement software, you can organize all procurement process from identifying to reporting much easier and faster.

Choosing the right software that integrates other functions with the procurement process will optimize the management.


Interest in getting savvy tips for improving your business efficiency?


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