Advantages of Digital Procurement to a Firm

All business enterprises need raw materials for their production to continue so that they can provide goods and services in the market. For this reason, the business will need to purchase the materials when they are used up. This is why most business organizations have created procurement department. It is the procurement department that is responsible for making purchases of all materials which the business need. The procurement department can order for any raw material that the business will need on behalf of the entire organization. Before procuring process was so hectic, you had to move in the market to look for a potential supplier or announce a tender to choose a supplier. But nowadays with digital marketing, an organization can order good from a supplier online without announcing tender. There are a lot of benefits that businesses which use digital procurement will realize. This article highlights some of the benefits below.

The main advantage of e-procurement is that it is fast compared to other methods of procurement. With the use of digital procurement strategy, a business firm will have not to spend time and money moving to the market to search for a supplier or make announcements for the tender to choose a potential supplier. But when using digital procurement strategy, you can view the status of the supplier you want to choose, then if the supplier has met all that you require you can place your order with the supplier, after that your goods will be delivered as fast as possible. After the good have been delivered you can then make receive invoices electronically and make payments. This process happens with a few minutes, and therefore, it is faster than the tradition procurement method.

The second advantage of digital marketing method is that it is not prone to human error, but if any detecting and correcting the error is very easy. With e-procurement, the invoice is sent digitally, so chances of human error are reduced, but an error occurs detecting the error and making a correction is easy and fast. With the old fashion procurement method, the invoice is prepared by a person this is the reason why it was prone to human error and detecting the error was difficult.

The other advantage of digital procurement is that it is cheap in the long run. The only thing that an organization need to start digital marketing is e-procurement software which is not expensive to buy. This is less expensive compared to the cost which the organization will incur when it starts to look for the potential supplier from one market to another or the cost of announcing tender in the newspaper.

These are the benefits of using e-procurement method

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