integrated_eprocurementeProcurement is widely understood as a software application for requisitioning and ordering goods and services. The purpose of eProcurement is to help employees identify and request the right goods and services, at the best possible price, in the right quality and quantity, at the right time. Goods also need to be approved and within budget.

According to an Enporion whitepaper, even best-in-class organisations max out at 82% spend under management, while average organisations implementing eProcurement only have 65% of spend under management. Enporion suggest that this is likely to be due to incomplete eProcurement solutions on the market, which only satisfy the needs of part of the procurement cycle, such as Purchase to Pay (P2P) – see definition further down. The whitepaper goes on to state that organisations cannot gain maximum value unless they have integrated end-to-end eProcurement, as without this, specific aspects of the procurement cycle remain unaddressed.

So what is integrated end-to-end eProcurement?
Integrated end-to-end eProcurement supports each stage of the purchasing process, from the initial creation of a requisition to the payment of the final invoice at contracted rates. Here at Eclipse, we provide the PROACTIS eProcurement suite, which consists of two complementary and highly integrated procurement sub-processes, Source-to-Contract (S2C) and P2P.

S2C includes the supplier management, sourcing, contract management and catalogue management functions Procurement uses to create value. P2P provides the framework that guides employees to established suppliers and agreements to fulfil their needs. P2P also ensures proper up-front purchase authorisation and drives PO-based purchases which, in turn, enable automated invoice processing at the back end. It also captures detailed spend history to drive spend analysis that enables even more value creation in the S2C cycle. Together, these two sets of inter-related processes create a closed-loop, end-to-end procurement process.

What are the benefits of integrated end-to-end eProcurement?

  • Improved process efficiency
  • Increased organisational effectiveness
  • Greater collaboration with suppliers
  • Optimal control over demand and spend

From our experience, organisations often implement a solution to support part of the procurement cycle and may look at other areas where they have savings leakages at a later date. Check out our ‘No-Brainer’ webinar series we are running in conjunction with PROACTIS for quick and easy ways to improve different aspects of your spend control.

Whilst some benefit can be gained by improving specific areas of the Spend Control process individually, it is not the most efficient approach to achieve optimal end-to-end eProcurement, as it could take a very long time. Implementing end-to-end eProcurement is by no means cheap, but the benefits of doing so can make a substantial difference to an organisation’s bottom line.

For more information on how to achieve integrated end-to-end eProcurement, contact us on +44 203 866 8800, or:

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