India Could Likely Be Headed For A Paradigm Shift In Procurement

Socrates said,“ The secret of change is to focus all of your energy not on fighting the old, but on building the new!”

This truly applies to procurement. A term that is at the centre of every business, big or small and yet, is the most understated.

It’s the department that sits at the centre of an organisation, drives purchases and is responsible for the bottom line profits.

It’s imperative to ask the question then, “In the ever-evolving spectrum, what are the next steps for procurement?”.

To put it simply, the answer is to advance and explore emerging trends and technologies. One substantial change over the years has been the shift from traditional procurement methods to eProcurement.

The international trend over the years is that companies have started to adopt the eProcurement way and continue to do so successfully establishing their way to the digital future.

On this global platform, India is already making strides towards digitising the nation. The Indian Government has made it mandatory for whole-of-government to source goods and services from its procurement site, in efforts to boost transparency and streamline public sector procurement.

The Government e-Marketplace, GeM, was launched in 2016 and sells over 2,500 products across 469 registered government departments. ( govinsider.asia/digital-gov/india-makes-e-procurement-mandatory-for-all-of-government )

The benefits that companies in India can reap from taking the eProcurement route are immense.

What should companies be looking at:

Real-time processing

This is possibly the greatest benefit of eProcurement in India. Using traditional methods of paper-pencil to handle all approvals and transactions can take a whole amount of time and manpower. Time is money as they say and overcoming this challenge could be one of the areas that could save companies not only money but increase transparency and real-time processes.

Forecasting

Every company forecasts for the coming months or years. This is always based on data. However, collecting data from traditional methods can not only be tedious but also give room to human errors. Moving away from this to an eProcurement system that can collect data in the most effective manner will give companies the bandwidth to forecast in order to increase profits as well as decrease unnecessary costs.

Integration

Majority of the companies in India use accounting packages to manage their books. However, the procurement department that is directly engaged or we can say initiates these invoices is not integrated with accounts. An eProcurement system that can integrate requisitions and orders with invoices and that can send and receive data from accounting packages would ensure that the entire pay-to-purchase cycle runs smoothly.

Green Initiatives

This is another great aspect and reason to adopt eProcurement. Going green and reducing the amount of paperwork that procurement processes demand would not only help companies use their time and money efficiently but also contribute to the environment.

These are just some of the reasons that would certainly contribute to the growth of organisations to keep them at par with the rest of the world. We reckon these are enough to get one thinking of the other benefits that would come with going the eProcurement way.

Our part in your journey:

At Eyvo, we work with organisations in close tandem to help them pave the way from the traditional methods to the emerging technologies. Our world class cloud-based platform with services such as analysis, design, build, training, integration and implementation services have made us the preferred choice all over the world.

Contact us to know more about eProcurement and of course about us. We are happy to help you and walk with you on this journey!