Large companies, government agencies, and institutions typically manage their Indirect supply chain and buying process using e-procurement systems. These organizations depend on their e-procurement system to automate their daily purchasing activities and contribute to their business goals throughout the year.
As technology continues to evolve, organizations increasingly rely on electronic procurement systems to help guide their corporate strategic vision plan and reduce costs. Both of these goals can be reached with a B2B e-commerce solution combined with PunchOut solutions.
Let’s take a look at why companies are turning to e-procurement systems and how PunchOut websites can help organizations reduce costs and improve operational workflows today!
What Is An E-Procurement System?
Electronic procurement is the process that corporations, government agencies, and other large institutions use to order items for operational needs.
For example, if a department in a large company needs to order more paper clips, an employee can use the procurement system to find, research, and order paper clips for the department.
This process may sound similar to an individual jumping onto Amazon or Walmart.com to buy personal items. However, B2B e-commerce requires an e-procurement solution with specialized functionality and customizations to regulate employee management policies, vendor agreements, and other spend management considerations.
From government agencies looking to save taxpayer dollars to large corporations that need a way to remain competitive, e-procurement systems support all organizations because they govern employee permissions, automate approval workflow, and reduce time wasted on inter-department communication.