The advantages of the e-procurement system include that fact that the Grant Company is able to get access to the right suppliers at the time when supplies need to be ordered for the operations of the company. The real time based transactions reduce the transaction costs, time as well as complexity by providing a direct interface between the supplier and the company, enabling the company to get more work done in the shortest rime possible.
Moreover the just in time techniques can also be supported by the e-procurement systems. “In general, the biggest advantage of e-purchasing is the reduction of inherent inefficiencies in the purchasing process, leading to lower product costs. An additional advantage is the availability of analytical data in real time, data that can be used to manage inventory to quickly take advantage of additional cost-saving opportunities.” (Morrison, 2001) The company is also able to reduce its postage handling and stationary costs through the paper less operations of e-procurement
The e-commerce based systems like e-procurement is also beneficial in terms of providing a medium for two way communication, identifying the trends and the problems in the markets as well as enabling the company and its suppliers to response much more quickly to stock outs. The companies are also able to grow much more quickly with the increased technological resources and efficiency in their operations with the e-procurement system. Moreover the small as well as large scale operations of the business are able to attain advantages from the implementation of the e-procurement system.
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