Directorate of distance education

Visibility of spend
: Centralized tracking of transactions enables 
full reporting on requisitions, items purchased, orders processes and 
payments made. E-procurement advantages extend to ensuring compliance 
with existing and established contracts.

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Productivity
: Internal customers can obtain the items they want 
from a catalogue of approved items through an on-line requisition and 
ordering system. Procurement staff can be released from processing orders 
and handling low value transactions to concentrate on strategic sourcing 
and improving supplier relationships.
Controls
: Standardized approval processes and formal workflows 
ensure that the correct level of authorization is applied to each transaction 
and that spend is directed to draw off existing contracts. Compliance to 
policy is improved as users can quickly locate products and services from 
preferred suppliers and are unable to create maverick purchases.
Using technology
: E-procurement advantages can only be fully 
realized when the systems and processes to manage it are in place. Software 
tools are needed to create the standard procurement documentation: 
electronic requests for information (e-RFI), requests for proposal (e-RFP) 
and requests for quotation (e-RFQ). These are proven methods to source 
goods and make the framework agreements that offer the best prices.
An adequate, fully integrated e-procurement approach is needed 
for overall success. Additional programs provide the framework for 
the supplier databases and spend management as well as holding key 
vendor information and being an electronic repository for contracts. 
All these facilities cost money and a clear business case must be made 
for e-procurement. In most cases this is fairly clear that cost savings are 
possible. 
It pays for companies to spend money on e-procurement technology, 
this investment will boost efficiency. The longer term reduction in costs 
will enable companies to direct their resources to more strategic initiatives. 
E-procurement advantages are significant bottom-line benefits, including 
cost reduction, process efficiencies, spending controls and compliance.