If a business is looking to perform well and stay on top in the market, the industry must bring down its operational costs and switch to more economical procurement mediums.
With most governance exercises shifting to the internet, e-procurement channels have been on the rise sidelining the traditional procurement sources. Also, the heightened efficiency, coupled with effectiveness, has led to many public and private entities migrate to e-procurement.
E-procurement allows the purchase and sale of services in government to business (G2B), business to government (B2G), business to customer (B2C) and business to business (B2B) transactions in an efficient manner when compared to the traditional practices.
Over the years, e-procurement has helped businesses in cutting down costs of operations and services, allowing them to withstand competition in the market. With e-procurement, companies, government and other entities are now able to bid for services and products online openly.
Also Read: FTA Enhances Export Opportunities of MSME Products
Micro, Small & Medium Enterprises (MSMEs) have been the foundation of the Indian economy for too long now. Thanks to improved effectiveness and productivity that e-procurement provides, MSMEs have been able to increase their profit margins considerably over the years.
Transparent transactions and mediator elimination coupled with reduced paperwork have helped MSMEs bring down the costs of operations and resources by a considerable margin.
With the elimination of the mediators and intermediaries, procurement of products and services online can bring down the costs considerably. E-procurement also ensures that the products and services are genuine and purchased at the best available price.
Online procurement of services has helped businesses replace the traditional channels where individuals would have to travel and bid for services physically. In the same line, with the data processed digitally in e-procurement, the paperwork associated with the bid and workforce involved has also been brought down considerably.
For any clarifications/feedback on the topic, please contact the writer at viswanathan.v@cleartax.in
Abbreviation is the name of the game – SIP, NPS, ELSS, KTM, and OMR.
Vishnu is the cat that got too curious. He can normally be found staring at market charts or drooling over his Real Madrid curios.
Favourite quote: ” Madrid, Madrid, Madrid ¡Hala Madrid! Y nada más”
