E-procurement is more than just a fancy word for digital purchasing. Though the process involves ordering and purchasing goods and services, the solution for eProcurement takes the entire paper-based process of supplier exchange and transforms it into an innovative online service.
For businesses in the hospitality industry, this means proactively identifying and fulfilling needs while sourcing, tendering, auctioning, and ordering products for your hotel, restaurant, casino, food service, or other event-hosting business.
To learn more about this tool, let’s take a look at what eProcurement software is and how it can benefit your company, as well as successful examples from some of BirchStreet System’s most reputable customers.
What is eProcurement Software?
Though many believe eProcurement software to be a fairly recent invention, its evolution has been taking place since the 1980s, when electronic data interchange (EDI) was first developed.
Fast-forward to the 1990s, improvements to EDI led to further advancements which allowed organizations to develop online catalogs for vendors.
Today, modern eProcurement involves a web-interface system that centralizes and automates interactions between vendors and customers to acquire products or services efficiently.
Benefits of eProcurement Solutions
Regarding the main functions of eProcurement, the features are far-reaching, ranging from automating the company’s day-to-day activities to larger supply chain functions.
In general, most eProcurement software offers automated processes to replace manual repetitive tasks, enables improved communication and collaboration between partners, works as a centralized platform for all procurement activity, and offers real-time data reports for all parties involved.
When it comes to the software’s benefits, most of the advantages of eProcurement are apparent in the functions themselves. For example, automated processes mean that chances for human error become significantly lower. Improved communication translates to more streamlined procurement cycles. A centralized platform for all procurement allows managers and stakeholders to manage and audit from a single location. And lastly, real-time data reports ensure all parties are on the same page at all times.
Particularly for supply chain management, eProcurement offers several additional benefits for indirect procurement or any items that are not directly involved in producing the final product sold by the company. This variety of goods can include office supplies, janitorial and facilities supplies, and other low-cost items.
eProcurement According to BirchStreet’s Customers
Since manual systems often result in wasted resources and unnecessary expenses, eProcurement solutions can save companies significant capital.
At BirchStreet, several customers utilize our unique eProcurement software, which eliminates such expenses and saves the company money which can be otherwise allocated for more important business-boosting practices.
Among our long list of reputable global partners and customers, clients notice significant cost savings and productivity gains from digitizing their procurement processes.
For example, a leading procurement service provider in North America uses BirchStreet’s eProcurement software to purchase nearly $4 billion of critical supplies and services annually.
Additionally, BirchStreet has partnered with top third party management companies to utilize this comprehensive, value-based supply management solution.
As a whole, our clients notice an overall savings of 7-10% from compliance improvements after using the eProcurement software solution, as well as a 10-20% productivity gain from automating procurement processes.
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Gone are the days of manually conducting procurement processes. In our digital age, it only makes sense that dozens of companies and industries are migrating over to eProcurement solutions to identify and fulfill the needs between vendors and customers.
And with a simple, easy-to-use interface like BirchStreet’s eProcurement software, integrating our comprehensive solution for sourcing, tendering, auctioning, and ordering products becomes a no-brainer for your hospitality company. Plus, you can obtain real-time visibility into spending and compliance for all locations and departments while noticing significant cost savings and productivity gains first-hand.