What is e-procurement?
Definition of e-procurement
Fusion of “e” for electronic and “procurement” for supply or purchase, e-procurement corresponds to the online procurement generally understood for a company.
What is the purpose of e-procurement?
The purpose of e-procurement is to centralize and optimize the purchasing channels of a company and to optimize the procurement processes through platforms.
Many procurement platform applications exist, all of which serve to improve operational efficiency within the company and to improve management control.
Examples of procurement platforms
1. Management of intellectual service providers: improving sourcing
The most common application example for e-procurement platforms is the management platform for intellectual service suppliers. This can be a platform that lists the freelancers the company has used, with their ratings, contact information, fees and availability management. It can also be a marketplace to monitor salary sharing.
This type of marketplace can be internal to the company, or the company can partner with existing companies / platforms. This type of procurement marketplace can be similar to online supplier catalogs.
The Pantone company understood that the talents of today were not in the companies but independent workers, that’s why they outsource a lot of their workforce. The service providers are selected then onboarded on a platform with the detail of their competences and solutions to make their services accessible to all the business units.
Note: These sites are very similar to freelance marketplaces.
2. Management of software purchases
Another possible application for e-procurement marketplaces can be a site for software license purchase requests. When an employee arrives, any necessary purchase can be requested via this platform, which facilitates the onboarding and license management of the employees. It can also be a platform that serves punctual license requests by an employee or hardwares requests. This type of marketplace can be directly integrated into an intranet.
The company Oasis has grown in 5 years and now has 500 employees. No two days go by without a new arrival, which makes onboarding and procurement management difficult. This is why they opted for a software and hardware management platform to facilitate the management of orders and resources.
3. Identify all certified providers in the company
A third application that is particularly useful in retail and franchising is a procurement platform for managing the company’s certified providers. Franchisees can, for example, access all partner suppliers and get a preferential rate.
Procurement marketplace idea:
A large retail chain has formed partnerships in France with service providers for one-off needs (communication, promotion, printing) as well as for regular requests (cleaning). All the franchises can access these services or specific products, validated by the parent company, with preferential rates.
4. Supporting HR policies
An idea of an electronic platform that serves the employer brand and HR policies: a platform that lists offers negotiated by the works council or employee services (concierge services, daycare, canteen, etc.)
The Green group is reforming its employer brand and has banked on a quality Works Council. To ensure that employees are aware of all the benefits they receive, the group has launched an e-procurement platform to list all the benefits and service providers to which they have access.
5. Supporting business transfers and travel
A final application can be a human resources travel management marketplace. When an employee is transferred, he can access all the dedicated services (moving, apartments, …). This site could also be dedicated to business travel.
Electronic procurement idea:
The Gerard Group now has over 70,000 employees worldwide. Changes are numerous and the group continues to grow.
Transfers are numerous and the group continues to grow. To accompany the transfer and ensure that everything goes smoothly, the group provides expatriates with a platform to accompany them in their transfer.
This list of online procurement applications is not exhaustive, there are other ways to improve the purchasing process, supplier management, purchasing/expenditure and taming within a company. This tool also allows the improvement of supplier sourcing.
More than optimization within the company, this system allows to offer a better experience to the supplier. Procurement platforms are part of B2B platforms: other ideas for b2b matchmaking platforms.