Not-for-profit Chief Purchasing Officers (CPOs) are always looking for ways to reduce operating costs, have more accurate audit trails, and create greater transparency in spending while decreasing maverick spending.
If this sounds like you, now may be the best time to consider moving to eprocurement.
It’s definitely trending upward
Don’t take our word for it.
Recent studies done by UPS, Pay Stream, and Grainger show that e-procurement is one of the best ways to improve procurement processes and reduce costs by 50% or more while reducing procurement cycle time.
Eprocurement can improve processes vital to any non-profits spend management and operations control, transparency, and data accuracy. However, many CPOs worry that e-procurement is too expensive, too complicated, or that it may open their organization up to privacy concerns and increased errors.
In this booming economy, time IS money… a penny saved is a penny earned
Help is on the way.
Let’s look at what eprocurement can bring to your organization.
After that, we’ll explore the cost and time investments required to make the move.
Eprocurement is a tool that enables business-to-business sales using the internet instead of paper, email, or voice communication for order processing.
A powerful and well thought out eprocurement system includes automation of internal ordering processes, access to online catalogs from approved vendors, and an electronic Request for Proposal (RFP) process that leverages online auctions to accumulate bids for specific projects. It should also include a secure online presence to protect your data and ordering process.
Peering into the cloud offers multiple advantages to a not-for-profit organization
Cloud based software offers several advantages to help improve your not-for-profit procurement process.
They decrease procurement cycle time, increase overall productivity, reduce cost and errors, improve vendor relationships, allow stronger standardization of approval processes, create greater transparency regarding compliance with regulations, and improve security of data and documentation.
Eprocurement is less time-consuming than traditional procurement allowing you to focus on strategic planning and goal fulfillment.
Let’s explore some of the ways eprocurement enhances procurement cycle speed.
– The electronic handling of paper-based, manual tasks supports and simplifies the purchasing process, thus decreasing transaction speed, increasing productivity, and reducing errors.
– The use of customized templates allows paperwork to be filled out more quickly and accurately.
– Electronic storage and retrieval systems mean less time spent tracking POs, Invoices, etc.
– Businesses see a reduction in errors and reworks because e-paperwork is easier to review and correct.
– And finally, previous orders are electronically filed allowing easy access for comparison to ensure new orders are correct and comply with previous supply orders.
Cost reduction is as important as any other potential benefit of e-procurement. A well thought out eprocurement system will enhance productivity while reducing costs across the boards.
Cover all your bases….Storage and Security
The result of centralized electronic storage of documents means that it’s easier to check for and prevent duplicate orders. It eliminates the cost of paper-based systems and often eliminates redundant systems that grew out of the decentralized paper-based systems. Due to stronger relationships with verified vendors, costs may be saved by leveraging volume buying across the organization.
Security and standardization are key to a powerful eprocurement system. With eprocurement, everything is saved and stored electronically. This saves you from needing more room and makes the process of finding previous RFPs and supply orders simpler.
More importantly, through centralized e-filing your files and records are secure and less vulnerable to loss through fire, flood, vandalism, or misplaced files. Standardized approval processes and workflows ensure that each transaction has the correct level of authorization.
E procurement provides your not-for-profit organization a value added benefit virtually guaranteeing an improvement in your bottom line.
Electronic purchasing ensures that each department is conforming to company procurement policy.
Compliance is improved when employees can quickly locate verified vendors and products. Clear, simple, accurate data tracking allows you to check that procurement policy is being conformed to and eliminates maverick spending.
When it comes to transparency and accountability, eprocurement ensures an ease of documentation and communication to ensure transparency and compliance between your spend and your procedures conforming to your organization’s policies.
Centralized tracking and reporting tools give you the powerful ability to analyze purchases at both the category and item level. Audit trails are clear and enable analysis to ensure compliance with local, state and federal non-profit requirements.
But if the thought of moving to an e-procurement process makes you pause and think, you’re not alone.
Many organizations worry that e-procurement is too complicated, won’t really cut costs or that it might open their organization up to privacy concern. And then there’s the time it takes to learn it and the cost of buying the system. In fact, there are systems that can cost up to $400.000 depending on the size of your organization.
However, Procurement Service Providers (PSPs) like International eProcurement have evolved to serve those organizations that want a fully secure, simple externally hosted system that doesn’t break the bank.
IEP offers a solution that can adhere to your specific requirements including workflow customization, configuring requisition approval routes according to your business hierarchy and approval needs. Our eprocurement solution can be tailored to non-profits’ needs.
Here’s something you’ll really like, the transition is …..
Easy, fast, and painless!
The marketplace was designed to offer public and private companies, educational institutions, and not-for-profit agencies cutting edge technology at a fraction of the cost.
Our research has discovered that procurement departments generally fall into four classes:
1. The Buyer displays a notice of certain bid opportunities on their website. Vendors are responsible to contact someone within the Buyers procurement department for instructions on how to retrieve the bid documents.
2. The Buyer uploads bid documents to their website giving vendors the option to download the bid documents, this also includes Addendums and other information as needed.
3. The Buyer uses software allowing them to upload bid documents as well as enabling vendors to register to receive those bids electronically.
4. The Procurement department uses software enabling real-time communication during and after the bid process with multiple vendors. Registered vendors have the ability to upload documents and pricing with sealed bid functionality. The Buyers can now evaluate vendor pricing online.
Which class do you fall into?
If you would like to discuss what International eProcurement can do for your not-for-profit organization, contact us at 1-866-526-9266 or through our website at International eProcurement.