e-procurement can improve public sector efficiency

03.11.2008

E-procurement is starting to deliver more stream-lined supply chains, better relationships with the right suppliers as well as significant savings. It may seem surprising that the public sector is in the forefront but it is the natural result of being frequently tasked with improving efficiency and raising service standards. External policies and procedures require public sector bodies to show a clear auditable record of what has been spent, on what and by whom.

If you can't see what your organisation is spending money on, you don't have effective control over your procurement processes reports Esa Tihila of BasWare. E-procurement can deliver considerable cost savings. By identifying preferred suppliers that can offer the best prices or volume discounts, it lowers the costs of goods and services. It can also remove the need to stockpile goods, so freeing up capital.

Lower prices are not the only benefit of e-procurement. It brings with it better productivity, faster planning, greater visibility, and eliminates unplanned buying. Automation of the procurement process frees up time and resources so staff can focus on more strategic areas of business.

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