What Is E-Procurement and How Does It Help Curb Indirect Expenditures?

Mar 20, 2020 1:30:46 PM

Organizations in today’s business climate focus on two main areas; one of them is to increase revenue, and the other one is to reduce expenses. In today’s competitive world, both of these aspects are challenging.

At To-Increase, we have been helping customers with improving many aspects of their business. In the recent past, we have had many customers approaching us seeking help on curbing expenses.

One of the ways we have been able to help them is with our accounts payable solutions. Accounts payable automation not only streamlines the payment processes but also enables you to get a complete overview of spending, supplier management, quality of supplies, and cash flow management.

One of the aspects of our accounts payable solution is that it can help you streamline your indirect spending process and reduce manual efforts by using the e-procurement option.

ACCOUNTS PAYABLE AUTOMATION-01 (003)-1

 

 

 

 

 

 

 

 

Let’s take a deeper dive into the subject to learn how you can use e-procurement to improve efficiency and control your indirect spending.

What is e-procurement?

E-procurement or electronic procurement is the process through which you purchase supplies and services for your company through an accounts payable automation solution.

The procurement process typically has the following steps:

Creating or raising a purchase requisition

The e-procurement process starts with the requester entering the system and raising a request for the product or service he or she wants to buy.

Select from a product and supplier catalog

On entering the requisition dropdown menu, the requester can pick the product or service from the approved supplier list or catalog. The advantage of having a list of approved vendors and suppliers is that you can define the items they will supply and the rates at which they will supply. This aspect will help you control expenses.

Adding the delivery date

Once the requester selects the product or service, he or she can also specify the expected date of delivery, which ensures that the approver and later on, the supplier, is aware of the timeline.

Submit for approval

Once the requester fills all the details, he or she can submit the requisition for approval. Since the procurement approval process is automated, the requester need not send reminder messages or follow-up with the approver.

Email notification to the approver

Another benefit of the e-procurement module or product is that it ensures that the approver gets email notification, easily accessible on a mobile device of the approver’s choice. The approver can see the request but also any attached documents.

Comments and clarification

The approver can approve right away if the details are clear or call for clarifications by adding a comment at this stage. The requester will get a notification, to provide clarifications or make requested changes.

Approval and PO generation

Once the approver is pleased with the inputs that the requester has provided, he or she approves the purchase requisition (PR), and notification of approval goes to the requester. At the same time, a purchase order (PO) is generated and sent to the vendor or supplier to execute the order.

Goods delivery and update on the system

Once the goods are delivered, the requester can acknowledge the receipt and upload the goods received receipt on to the e-procurement module. In the meantime, the vendor or supplier generates the invoice and sends it to the accounts payable department.

Three-way match, payment, and process closure

The accounts payable automation solution will do a three-way match of the purchase order, goods receipt, and the invoice to process the invoice. Once the invoice is approved , the entry will sync to the ERP system.

Watch the video to see how the e-procurement module within To-Increase MediusFlow works.

TI MediusFlow e-procument demo

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Here’s what you can do next

Now that you are aware of the simplified process that e-procurement brings to the table, let us look at the benefits:

  • E-procurement makes the purchase process quicker and more efficient
  • Ensures that any spending well-planned and systematic
  • Helps you source suitable suppliers with attractive rates, payment and delivery terms
  • Is easy to follow and implement and helps with audit documentation as all approvals are maintained within the software
  • Reduces the stress on your finance team, especially the purchase and procurement team

Want to learn more? We can help you streamline your indirect procurement process.

Share this message
Assets icon-01
Factsheet

Want to learn how to streamline your e-procurement process?

Download Factsheet

About Author
Michele Chapman

Michele Chapman

Product Manager Finance Michele brings her 15+ of experience in government contracting and materials management to To-Increase as a product manager. During her career, she has held positions in supply chain for a government contracting company and for one of the largest providers of supply chain transportation solutions in the U.S. More recently, she was a principal consultant at a recognized software vendor for the government contracting market.
Michele holds a B.A. in French and International Studies from West Virginia University, an M.A. in French from George Mason University, and an M.B.A. and a Certificate in Supply Chain Management from the College of Business at East Carolina University.

Get In Touch

Related Blogs

Jul 9, 2020 12:08:02 PM
Jun 10, 2020 10:00:00 AM
Jun 3, 2020 9:45:00 AM