What is eProcurement?

Eprocurement is the term used to describe electronic methods of conducting business transactions. The 'e' in eprocurement stands for electronic. Eprocurement can be used in every stage of the process. It can begin with the actual sale coming through to the purchaser and end with the customer's invoice and payment.

With the advent of the Internet, many businesses now sell only via computer technology. It is an excellent way for businesses to cut overhead costs and reach a larger customer base. Eprocurement is not only beneficial for businesses; customers can also find this method of purchasing advantageous. They have a wider choice of merchandise and can shop without leaving their home. With a little web research, they can easily find the lowest price when purchasing goods.

Specific benefits for a business using eprocurement include modernization, which brings the workplace up to date with the latest marketing and selling methods. It can also help departments manage their supply chain more efficiently. Eprocurement also opens up a diverse range of markets, including tendering bids and reducing costs on government contracts.

An easy to recognize web business that utilizes eprocurement is ebay. Businesses or individuals sell their products on this web site to the highest bidder. Sellers can also advertise a "buy it now" price which customers can accept for purchase without bidding. Once the sale is complete, you can pay by credit card, with a Paypal account or via your bank account.

This type of buying and selling reaches the widest possible marketplace. Many people run businesses from web sites like these. There are little or no overhead costs, but you may need to purchase software applications such as epayment. Epayment is a software tool which deals with electronic invoicing and self-billing. Such software is relatively cheap, and once it is in place the billing procedure takes care of itself.

Eprocurement does not just deal with sales and purchasing. With today's Internet capabilities, it has never been easier, or cheaper, for businesses to market and advertise their products. Instead of costly and time consuming mail shots, a single email can be sent to many customers at a fraction of the price. Even business conferences with staff based all over the world can take place electronically.

There are no limits to what businesses can do using the technology of eprocurement. Almost anything you can think of can be bought or sold using this process. Wholesale buyers can search electronic catalogs for goods, purchase their requisitions and send the goods to their suppliers. The time scales using eprocurement compared to previous methods are extremely quick. In today's fast paced consumer marketplace, no business can afford to underestimate the value of eprocurement.