Small and medium businesses are now moving towards e-procurement

E-Procurement platforms have largely been the domain of big companies for the last decade, but that is changing with mid-sized companies now enjoying the benefits.

These e-Procurement platforms are not a new concept, having been released on the market about a decade ago, promising major efficiencies and savings of to 12 per cent. The problem was that these projections assumed all business operations are the same – and they are not.

Larger, Fortune 500 companies discovered the savings 10 years ago, but smaller operations found that the early e-Procurement solutions were too complex for their small teams to adopt and failed to discover any savings by making the switch.

But a decade later, things have changed and platforms like the Online Procurement System are making it simple and easy for small and medium-sized enterprises to make the switch and discover real differences.

What is e-Procurement?

This is the process of moving the sale and purchase of supplies, work, services and equipment on web-based platforms where businesses, consumers and government bodies can exchange online for the procurement of these goods and services.

The main functions of e-Procurement are automated processes and total visibility throughout the entire procurement process, which frees up valuable resources, reduces errors caused by human mistakes, improves communications between stakeholders and streamlines the entire process. Having a supplier self-registration process also reduces resource requirement to assist with onboarding suppliers, which has a hefty price tag in some instances.

How e-Procurement failed small business operations in the past

You can’t blame early e-Procurement efforts for targeting the big fish, it made economic sense. So the launch platforms were tailored to multi-national organisations with a globalised approach to doing business.

Put simply, the hat didn’t fit the small and medium players.

The digital forms were too complicated and time-consuming, the features were top-heavy and not suitable for simple local procurement, the analytics were extensive and hard to comprehend and sort through and training staff was a long and complex process.

It was easier for smaller operations to just handle their procurement the old-fashioned way and leave e-Procurement to the big companies with operations all around the world.

This is changing. Research has indicated that many medium-sized companies are now shifting their operations towards e-Procurement as a way to manage their supply chains and contracting of services.

What has changed with e-Procurement?

The key difference is that there are now platforms available that suit the needs of small operations while offering a simple to use UI that delivers the savings and efficiencies promised a decade ago.

And there are many other reasons why SMEs and medium-sized companies are turning towards e-Procurement to service their needs including:

  • Intangible business products: Previously you could order spare parts and tangible products with no problem. But the new, digital world means that businesses of all sizes need to be able to procure more intangible services like IT support and IT systems on a contingency basis. These services primarily exist online and are more easily accessed through e-Procurement.
  • Globalisation: More and more medium-sized enterprises across all industries are finding that their operations are expanding and they need to tap into international supply chains to be competitive.

How Online Procurement Services can make e-Procurement simple to adopt for your medium-sized enterprise

First of all, Online Procurement Services (OPS) is not a new company or a new platform. In fact, we have been providing powerful, yet simple supply chain solutions for businesses of all sizes since 2015.

Our team has over 30 years of procurement, consultancy and supply chain experience and designed this platform to be powerful but simple to adopt for every business and their suppliers.

OPS can be used precisely how you need to use it, and being modular in design, can be tailored to suit your requirements. It can be used with a strong local, community approach and connect you to the best and most reputable local suppliers while also allowing you to onboard your preferred suppliers simply and easily. And it can also connect you to local projects and deliver analytics on the real value delivered locally.

Contact our team today and get to know how easily you can start your e-Procurement journey and experience enormous efficiencies through our simple to use platform.