Most procurement leaders agree that going digital is the best way to stay ahead. Digital transformation in procurement is expected to touch 72% by 2025. Understandably, many industry leaders worldwide are investing in e-procurement solutions. Short for electronic procurement, this practice involves acquiring and selling products and services between businesses over the internet.

For midsize organizations, the incentive to embrace electronic procurement may be revised because of other pressing challenges. For example, cash flow issues, the pressure to innovate and the need to expand the customer base can all put procurement transformation at the bottom of the priority list. But there are many benefits of digitization in procurement today.

Top reasons to embrace digital procurement

1. Cost savings and margin maximization

PwC reports that nearly 70% of companies adopt digital procurement to save costs. This is a reasonable incentive to switch to e-procurement because you can save operational bandwidth, consolidate vendors and even switch to alternate vendors to optimize outlays. Additionally, reduced paperwork and eliminating unnecessary steps in the purchase process, such as making multiple copies of documents and duplicating manual data entries across different branch offices, can also cut costs and improve margins.

2.Reduced dark purchasing

Dark purchasing makes it harder to track who requests what inventory and why. This is a common issue in areas like MRO in procurement, which can be less organized than other areas of the supply chain. E-procurement can make tracking purchase requests and supplies easier, thus eliminating dark purchasing.

How to effectively integrate e-procurement into your business strategy?

There are many steps you can take to digitize your business purchases. Here are two such crucial strategies that can be great starting points.

1. Implement an e-procurement software 

E-procurement software helps your business convert the entire purchase process from manual to electronic. As a result, inventory management, tracking, invoicing, order fulfillment and vendor management are more streamlined.

2.Utilize an e-catalog for smarter procurement

E-catalogs make purchases more transparent and eliminate many roadblocks associated with manual catalogs. They even make real-time inventory updation possible and reduce gaps in communication with your vendors. Furthermore, e-catalogs also give you all the information about the products or services you need to procure in one place.

Revolutionize procurement for your business: Upgrade to e-procurement today. 

E-procurement can transform your organization’s entire procure-to-pay cycle for the better. With the right digital procurement strategies, your business can cut costs, maximize margins and streamline the supply chain.

This is especially important for midsize organizations keen on expanding into more extensive frontiers. If your organization belongs to this category, Moglix Mid-Market Solutions can streamline MRO procurement and help address supply chain challenges more effectively.

To digitize your procurement and save big, you need to send us your business query at info@moglixbusiness.com.

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