What is eProcurement and its Benefits?

What is eProcurement?

eProcurement is the process of using electronic technology to automate the procurement process. This includes tasks such as sourcing suppliers, requesting and approving purchase orders, and receiving and paying for goods and services.

eProcurement can help accountants in a number of ways, including:

• Improved efficiency: eProcurement can help accountants improve their efficiency by automating many of the manual tasks involved in the procurement process. This can free up accountants’ time to focus on more strategic tasks, such as financial planning and analysis.
• Reduced costs: eProcurement can help accountants reduce costs by streamlining the procurement process and by negotiating better prices with suppliers.
• Improved compliance: eProcurement can help accountants improve compliance with financial regulations by providing a more transparent and auditable record of all procurement transactions.
• Reduced risk: eProcurement can help accountants reduce the risk of fraud and other financial losses by providing a more secure and controlled environment for procurement transactions.

Benefits of eProcurement.

Here are some of the specific benefits of eProcurement for accountants:

• Improved visibility into spending: eProcurement systems can provide accountants with real-time visibility into all spending, which can help them identify areas where costs can be reduced.
• Reduced workload: eProcurement can automate many of the manual tasks involved in the procurement process, such as creating and sending purchase orders and reconciling invoices. This can free up accountants’ time to focus on more strategic tasks.
• Improved accuracy: eProcurement systems can help reduce the risk of errors in the procurement process. For example, eProcurement systems can automatically check purchase orders for accuracy and compliance with company policies.
• Increased control: eProcurement systems can help accountants increase their control over the procurement process. For example, eProcurement systems can be used to set approval limits for purchases and to track the status of all purchase orders.

How to use eProcurement.

Finance teams can use eProcurement in a number of ways, including:

• To source suppliers: Accountants can use eProcurement systems to search for and compare suppliers based on criteria such as price, quality, and delivery time.
• To request and approve purchase orders: Accountants can use eProcurement systems to create and send purchase orders electronically. eProcurement systems can also be used to automate the approval process for purchase orders.
• To receive and pay for goods and services: Accountants can use eProcurement systems to track the receipt of goods and services and to generate invoices for payment. eProcurement systems can also be used to automate the payment process.

eProcurement tips.

eProcurement can automate many of the manual tasks involved in the procurement process. eProcurement can help accountants improve their efficiency, reduce costs, improve compliance, and reduce risk. Here are some best practices for finance teams who are using eProcurement:

• Choose the right eProcurement system for your needs: There are a variety of eProcurement systems available, so it is important to choose a system that is right for your organization’s size, industry, and budget.
• Implement the eProcurement system properly: It is important to implement the eProcurement system properly in order to reap the full benefits of eProcurement. This includes training all employees on how to use the system and developing a process for managing procurement transactions.
• Integrate the eProcurement system with other financial systems: Integrating the eProcurement system with other financial systems, such as ERP and accounting systems, can help to streamline the procurement process and improve the accuracy of financial data.
• Monitor the eProcurement system regularly: It is important to monitor the eProcurement system regularly to ensure that it is working properly and that it is meeting the organization’s needs.
• Use the eProcurement system to generate reports: eProcurement systems can generate a variety of reports, such as spending reports, supplier reports, and purchase order reports. These reports can be used to identify areas where costs can be reduced, improve supplier relationships, and track the performance of the procurement process.
• Use the eProcurement system to collaborate with other departments: eProcurement systems can be used to collaborate with other departments, such as sales and marketing, to ensure that procurement is aligned with the organization’s overall business goals.
• Keep the eProcurement system up to date: It is important to keep the eProcurement system up to date with the latest features and security patches. This will help to ensure that the system is operating efficiently and securely.

How Airbase helps with eProcurement?

Airbase’s procure-to-pay platform offers many of the important aspects of an eProcuement system. In particular, it provides a vital upfront workflow, referred to as intake. At Airbase, we call this Guided Procurement. Before any employee can make a purchase, they make their request in Airbase. The system guides them through the requirements and prompts them to collect documentation and submit information. Airbase then routes this to all stakeholders for their review and approval.