Electronic procurement, commonly referred to as e-procurement, defines the automation of procurement and supply chain processes using web based technology. eProcurement enhances an enterprise resource planning (ERP) system, providing procurement automation of internal business processes which are not a focus of ERP systems. Streamlining the procurement process using eProcurement technology reduces time and costs without compromising on standards and quality.
A common approach seen in Procurement is to use your ERP system for direct spend due to the built in inventory process of the ERP and then use an eProcurement technology solution for indirect spend. Many of these eProcurement software tools are delivered as a Software as a Service (SaaS) model. These SaaS eProcurement automation tools enhance our ERP system and integrate witht he existing ERP system. Additionally most provide for online cataloging which would encompass an internally generated product catalog as well as online retail catalogs frequently accessed by what is referred to as “punch outs”. The end result is one eProcurement tool to handle all of your organizations procurement needs.