WHY SHOULD YOU CHOOSE E-PROCUREMENT SYSTEM OVER A TRADITIONAL ERP TO TRANSFORM PURCHASING EXPERIENCE?
The quintessential motive of both ERP and E-Procurement is to increase the productivity and efficiency of the business activities, primarily the purchase order systems. But, how fast can you achieve this motive using ERP? Months, years or maybe never. The more quick and efficient way to achieve it is through E-Procurement because, there are no if's and but's in a business, results speak for everything.
The below are the prime factors that will determine how the multifaceted E-Procurement always triumphs over traditional ERP in the purchasing world.
LOW COST AND IMMEDIATE.
All businesses need new technologies to accelerate their businesses, make themselves more productive and stay relevant in the industry. But the question here is, can the businesses afford an expensive ERP or do they want to spend on a system that might show results over a long period of time. No, not all businesses mint enough money to buy expensive software neither do they have the time for the ERP system, to fall in place so that they can act further. The ones that can afford and actually understand ERP are already running ahead in the race. So, what about your business that is waiting on the ladder of growth for a system that actually works for you?
e-Procurement products as a matter of fact are far more efficient in transforming purchase experience.
The positive outcome of its deployment can be seen from the day the system is implemented and
Also, the ROI is evident in the initial two or three months of bringing e-procurement into action.
The administration of an E-Procurement system into the daily activities will allow all scales of businesses to make their mark the race and prosper.
FLEXIBILITY AND SCALABILITY.
Similar to most traditional customs, ERP is also extremely rigid and inflexible. The companies are forced to follow certain standardised purchase procedures offered by traditional ERP that might not suit their business.
Unlike ERP, an e-Procurement system can be designed and customised as per the size of the company as well as type of the industry.
It can also be configured to suit your needs in case of both horizontal and vertical expansion of the business.
E-procurement is also highly transparent which allows documentation and communications at an ease.
The best of e-Procurement is materialised when companies choose it as a standalone system as the purchase system of an organization is a formidable function.
However, its flexibility allows it to act as an add-on service or as a standalone system; on cloud or on premise. Nevertheless, the return on investment is visible immediately.
EASY IMPLEMENTATION AND QUICK LEARNING
It takes months to implement ERP systems and migrate the purchasing data. The pain will not end there as ERP needs long training periods to learn and excel the complex system. The downside of all of this is you can never be a 100% positive that the introduction of ERP in your purchase team would work in the way you want it to. However, that was the past.
e-procurement takes just a few weeks (days) to implement without disturbing your daily business activities and then, you can see the results promptly.
There is no complexity involved in this new system and it can be learnt at a proficient level in a span of days.
e-procurement simplifies and speeds up the purchase order system considerably, the best part being that it can be purchased online.
e-Procurement helps in streamlining the tenders and quotations, automation of payment cycles, live bidding and leveraging volume buying which in in turn fuel up the productivity.
Historically, the data has always showed us that the increase in productivity is a sign of upward growth.
As per a popular research conducted by Forbes, it is found that 70% of the organisations that switched to E-procurement showed an increase of 5%- 20% in then spend savings.
PRM360 alone showed a record of 10-15% savings on the final negotiated prices.
They say change is inevitable. Levelling up is the solution to keep up with changing business environments.
E-Procurement is a hands down winner in its race with the legacy ERP system in the purchase world.