How does eProcurement work?
As long as we have had the internet and consumerism, we have had eProcurement. Even if the term is not familiar to you, the action surely is. eProcurement is the B2B, B2C, or B2G sale and purchase of supplies and services through the Internet. While eProcurement is commonplace to the modern millennial consumer on an individual level, it is also commonplace to the majority of corporations and government agencies to regulate the selling and obtaining of millions or billions of dollars of supplies and services every year.
Before eProcurement, organizations had to communicate with vendors over the phone, in person, or through the mail. That process was not only time consuming, but ran the risk of being unfulfilled due to the risk of human error. However, by removing intermediate procurement steps, eProcurement has made the procurement process seamless. This procurement process that used to require manual PunchOut processing could now be automated through a SaaS eProcurement platform. Businesses flocked to these Saas platforms at the promise of cost efficiency and streamlined procurement.
eProcurement works by combining all of the classic steps toward procurement and adapting them to the virtual sphere. The full eProcurement process begins with e-sourcing and identifying product and service suppliers. Then, the necessary products are identified and solicited for evaluation. After the suppliers have been narrowed down, they are all brought together for e-auctioning to negotiate contracts. Finally, once contracts with suppliers are negotiated, services and materials can be e-ordered.
eProcurement and PunchOut Technology
eProcurement and PunchOut technology work hand in hand. Whereas you can participate in eProcurement without utilizing PunchOut technology, PunchOut technology exists within a hosted eProcurement system.
PunchOuts give buyers access to different supplier catalogs within their chosen eProcurement platform and allows them to synchronize their purchase history and preferences between their eProcurement and B2B ecommerce applications. For vendors and sellers, PunchOut technology allows you to create custom catalogs to provide each buyer based on their persona and activity within your eProcurement platform.
However, PunchOut technology is not all sunshine and streamlined product procurement. While the performance of a single PunchOut site cannot be understated, once a consumer is faced with navigating multiple PunchOuts sites dangling from the same eProcurement platform the process can quickly turn into a time suck.
Using eProcurement Software to Reduce Lab Supply Procurement Time and Cost
As long as organizations will continue to need new supplies and equipment they will continue to use eProcurement software. The good news is, with the right eProcurement software the process of obtaining the materials you need can be as simple as logging in to your account.
When you use eProcurement software to procure your lab supplies you are reaping a lot of benefits you otherwise would not be. Benefits such as:
- Better transparency in the procurement process, from start to finish
- Lower cost of the procurement process itself
- Lower cost of supplies due to real-time supplier comparison
- Stronger relationship with vendors and procurement teams
- The elimination of paperwork
- Optimal utilization of resources
- Equal access to all system elements
- Adding more strategic value to your company
- Remote product approval
By mapping all relevant departments to the eProcurement portal, the process of procuring lab supplies and resources for your organization will help to reduce your time to milestone and get actionable results more quickly. With all the freedom allowed to your organization through your adherence to an eProcurement portal, who knows what you will accomplish next?