E-procurement helps companies cut costs and increase productivity by implementing automation in purchase process. This automation reduces overheads and wastages that usually occur in traditional purchases. In spite of the slowing global economy, more and more companies are awakening to the benefits of automation. Numerous software companies cater to the procurement needs by providing quality e-procurement services. A good software managing online purchasing handles all aspects of the purchase process, ranging from the requisition to the arrival of goods. Standard e-procurement software features RFQ (Request For Quotation), automatic bidding and automated negotiation tools.

There are many e-procurement service providers. The service provider generally takes care of the implementation and management of the e-procurement system. It needs great expertise and a sound knowledge of the company requirements to implement purchase automation effectively. E-procurement services are offered for either a monthly or yearly service charge. The software handle tasks ranging from preparation of the inventory to the delivery of the goods. The makers of the software also provide onsite training for handling the system. Most e-procurement services providers design their system to execute continuously in the 24 hour x 7 day model. The system handles the whole process with fewer human interventions. Most e-procurement software is flexible enough to adjust according to the company's business nature.

The overall benefits reaped from e-procurement services far outweigh the investments made into the system. E-procurement services enable a company to save time, money and large amounts of paperwork. In large organizations, this savings may amount to millions of dollars.

Source by Seth Miller