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The advantages of procurement are :
Reducing costs
Costs can be reduced by leveraging volume, having structured supplier relationships and by using system improvements to reduce external spend while improving quality and supplier performance. E-procurement eliminates paperwork, rework and errors.
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.
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.
Procurement advantages are significant bottom-line benefits, including cost reduction, process efficiency, spending controls and compliance.
the main purpose of the procurement is to supply the goods to the organization on most competitive rates and high quality
