Electronic procurement normally referred to as EProcurement characterizes the procurement automation and supply chain procedure using web-based technology and application. This extends the idea of ERP (Enterprise Resource Planning) frameworks, permitting internal business process automation hence providing a platform to support automation at an international level. The advantages of EProcurement are becoming more and more evident with the enhanced understanding of its benefits. The fundamental reason behind why different companies and Dubai Marketplace are embracing Eprocurement is to build efficiency, give visibility into daily transactions and make it less demanding for the clients to get their required supplies.
The advantages of eProcurement in Dubai Marketplace as well as at a global level are as follows
Reducing the costs
Costs can be minimized by leveraging the volume, having organized relationships with the suppliers and by utilizing the system improvements to lessen the external spend while enhancing the quality as well as the performance of the supplier. EProcurement solutions eliminate errors, paperwork and rework.
Internal clients can get the things they need from the catalog of the approved things through an online demand and the system of ordering. Procurement staff in Emarketplace can be discharged from the processing orders as well as managing transactions of low value to focus on key sourcing and improving the relationships of the supplier.
Solidification of preferred vendors
Some of the low-volume vendors may become eradicated eventually from the system of providers by means of EProcurement in Dubai Marketplace, bringing about more buys being coordinated to favored sellers and expanded limits getting to be accessible.
Centralized transactions tracking empowers full details on the demands, order processes, items purchased and the payments made. The advantages of EProcurement in Dubai Marketplace extend to ensuring compliance with the established and existing contracts.
Use of technology
EProcurement preferences must be completely acknowledged when the procedures and systems to handle is set up. Various software tools are expected to make the documentation of the standard procurement: e-RFI(Electronic requests for information),e-RFP(requests for proposals) and e-RFQ(requests for quotation). These are demonstrated techniques to source the goods and make the system understandings that offer the best costs.
Formal workflows, as well as the standardized process of approval guarantee that the right approval level is applied on every transaction and that spend, is coordinated to draw off existing contracts. Consistency to approach is enhanced as clients can rapidly find services and products from the preferred providers and can’t make maverick buys.
Decreased transaction time
Business transactions can be finished very quickly; they are not confined by the office hours and may not require the intervention of a human, thus enhancing the ability to complete the transactions on an ongoing premise. This implies downstream procedures are not obliged by trusting that the transactions will be completed.
With Electronic Catalog, there has been a move by a few providers to offer an increasingly standardized offer, in this manner enabling purchasers to effectively look at the offers from e-inventories; anyway, care must be practiced in these correlations as it is difficult to evaluate the nature of the products without the samples. In case of any doubts, ask for the samples and take the time to make for the assessment.
ECatalog development has empowered Dubai Marketplace to market the products offer electronically, this has been a phenomenal tool of marketing for the purchasers and the dealers, there is value straightforwardness (you can undoubtedly perceive how much things cost) and purchasers can think about offers from different e-inventory sellers.
More extensive spread supplier bases
As the virtual portals of EProcurement are online, purchasers can search the suppliers around the world, which means more extensive services and products selection are available to the companies meaning that when things are not locally available, it is as yet possible to source these. It is essential to recollect the time and cost of the shipping goods, however, it’s incredible to realize that it is possible to source things from the world.
Simple scalability and configuration
EProcurement applications can be arranged to suit the individual needs or both the purchaser and the provider and can develop with the organization as requirements are. It is important to choose providers for current as well as the future requirements so gaining the understanding of the supplier of development plans of technical infrastructure will assist purchasers with selecting long term partners.
Simplified global procurement
With the eProcurement applications supporting different currencies, languages, international financing and taxation, shipping directions and many more, it is easy for the sellers and the buyers worldwide to co-operate and communicate.
More cost efficient
With the increased suppliers and time reductions in Dubai Marketplace, trading community’s development, opportunities for buying surplus goods and services at reduced market cost are significantly more. This is due to guided buying. It isn’t surprising that EProcurement ends up being considerably more cost-effective than traditional procurement.
Trading communities’ creation
EProcurement applications are web-based, they take into consideration both horizontal and vertical trading networks to be created. This implies the purchasers can combine purchasing force and it additionally opens up open doors for new supply chains. Opportunity to consolidate the demands of the smaller purchasers by means of trading communities or consortia has empowered the smaller business to get to costs generally held for greater purchasers, accordingly fuelling a quick creating SME sector.
Reduction of the excess stock by the providers temporarily can be applied easily with the dynamic idea of online pricing, which means large companies can take the benefit of significant investment funds by buying at the right time. Key here is to hold close to the market, setting up the alerts to feature significant changes.
E-procurement is something beyond a system for making purchases on the web especially in the Dubai Marketplace. The framework has been implemented to accomplish the significant advantages, for example, cost reserve funds and increased productivity. Different benefits in applying an EProcurement framework are much faster government procurement process and higher straightforwardness contrasted with the traditional procurement and offering strategies.