You already know the importance of timely and accurate procurement of raw materials, equipment, and other items that you may need. You need to make sure that you have an adequate inventory of raw materials to ensure the smooth production of goods and products. That is the reason many companies have digitized their procurement process and now several B2B businesses are procuring raw materials and goods online.
This has increased the demand for e-tendering software as it enables organizations to find, order, and purchase goods and services that they need through the internet. The software allows procurement professionals to browse through visual catalogs and note down details of each product or service. They get detailed information, not just about the pricing but also the expected time of delivery. As a result, it shortens the selection process and automates the buying and payments. The software allows a business to forge partnerships with multiple vendors and suppliers and hence, they can select the vendor or supplier that offers competitive pricing and high quality.
Advantage of Using e-Tendering Software
Here are some benefits of adopting this software:-
Reducing Procurement Costs
After deploying the software, you will witness a reduction in procurement costs. Since procurement professionals can compare and vet products, goods, and services online, it helps them manage the spend better and do away with maverick spending. It reduces requisition to order cycles and costs.
When you automate procurement, it makes the entire process more transparent and fair. The method to shortlist suppliers, get quotes, negotiate prices, and choosing the supplier are easily available and hence, it allows the management to see why a particular supplier was selected. It makes it easy to keep track of the entire procurement cycle, from start to finish, and this reduces the possibility of malpractices and fraud.
As the terms and conditions of the contract are clearly spelled out, it becomes easier for procurement professionals to ensure vendors comply with the terms and your business is also in complete compliance. This minimizes the risk of delays, penalties, and fines. It forges a better working relationship between you and your vendors, and you and your customers.
Since the procurement cycle time reduces and purchase becomes the sole responsibility of the procurement department, it ensures higher transparency as well as agility. The procurement team becomes more productive as it can handle all aspects of the procurement cycle, right from maintaining vendor and supplier database, choosing the right supplier for products or services, and negotiating rates and contracts. The turnaround time reduces, allowing the procurement department to concentrate on strategic procurement.
The Bottom Line
e-Tendering helps your business to standardize procurement. It also makes procurement approvals quicker as your procurement team can create e-signature contracts, which are valid and legally binding.