eProcurement: High performance in procurement.
Average savings in procurement: 40 percent
The free Purchasing Efficiency Guideline provides the answers to immediately achieve impressive savings in process costs with eProcurement! It's best to request it now, free of charge and without obligation, together with a wealth of practical experience in the DIG magazine.
eProcurement and purchasing digitization: a question of future viability
The digitalization of procurement is about potential that companies cannot do without! On the one hand, savings in process costs (up to 40%) lead to rapid amortization of eProcurement solutions (often within the first year). On the other hand, it is precisely this easing of the burden on purchasing through electronic procurement platforms that enables real strategic added value: supplier consolidation and development, the bundling of procurement volumes, green sourcing or tasks in connection with the supply chain due diligence obligation (LkSG or CSDDD) are to be mentioned in this context as critical construction sites in buying. With eProcurement, purchasing is experiencing an absolute upgrade: from Mr. Two Percent to the future-proofing of the company!
Electronic procurement (also known as eProcurement) makes buying processes secure and cost-effective through transparent processes. Our solutions adapt to the people who use them - and thus reflect the real, practical organization. In combination with high usability, DIG offers simple, intuitive use on a par with the conventional online shopping experience. This massively reduces the need for training, even from several days to a few minutes for individual customers. This ensures high user acceptance and a secure start to decentralized procurement. Depending on the digitalization strategy, not only can indirect materials and services be procured efficiently, some of our customers also use eProcurement to purchase A and B parts outside of the traditional ERP channels! The result: a significant reduction in process costs, maximum transparency in procurement and clear release structures. And above all: maximum relief for the purchasing department so that it can focus on the really exciting task of keeping your own company in the game.
You should know these figures!
Digitizing real life: This is how eProcurement works!
A basic prerequisite for achieving the above-mentioned goals is that the eProcurement system is used by the users! It is therefore essential to adapt the digital processes to the real organization as far as possible! This is precisely the strength of DIG's flexible solution architecture, with which all requirements of the individual procurement process can be implemented using a modular system based on standardized modules.
For example, complex, industry-specific special processes (e.g. from the day-to-day work of construction companies) can be implemented in a reliable, digital workflow. Release and approval processes can also be designed and combined in any number of stages depending on the product groups and G/L account: For example, the accounting department can be included in the processing on a mandatory basis or a flexible escalation involving various departments can be provided when certain cost limits are reached. Adjustments to the process are also possible at any time, e.g. for vacation replacements or a change in standards.
With a multi-stage project process, even the most complicated procurement concepts are implemented exactly according to plan and operated in a future-proof manner, so that all functional expansion options are available at all times: from the unrestricted connection of additional locations and integration of additional workflows across all product groups to the fully automated purchase-to-pay solution.
Concentrated knowledge from Austria's leading eProcurement expert
DIG accompanies international corporations as well as SMEs through all phases of an eProcurement project. In DIG Magazine, we talk to purchasers from various industries about how their procurement processes have been optimally digitized. You will also find out how we use agile software development and a comprehensive understanding of users' needs to create convincing eProcurement solutions with a fast ROI. From the first workshop to ongoing support of the procurement platform.
Bringing eProcurement projects safely to the finish line
Reliable implementation is the most important promise in connection with software projects. Thanks to the detailed preliminary work and definition of the desired workflows and processes, DIG is able to calculate even complex projects within a fixed budget! Conversely, agile development and DIG's active exchange with the project team in the company also allows a flying start, where the path is created as you go and new requirements are responded to in real time, so to speak. Of course, project management always keeps an eye on costs and communicates them during regular coordination meetings. In this way, the danger of eProcurement projects getting out of hand is averted.
The best solution in every software environment
Every eProcurement project is confronted with a wide variety of existing ERP systems. As a specialist, DIG has in-depth experience with all major systems such as Microsoft Dynamics AX and NAV, ORDAT FOSS, infor, SAP (including the current S/4 HANA), OXAION, ORACLE and PROALPHA. DIG eProcurement has also already been connected to ERP systems from exotic suppliers or various in-house developments and creates tangible added value for business via intelligent interfaces.
In addition, DIG also enables flexible integration of any third-party systems: for example, some customers have integrated computerized maintenance management systems (CMMS) or maintenance planning and control systems (IPS) such as ispro-NG into their procurement workflow or use workflow systems such as DOXiS to centrally control and approve their procurements. This is made possible by DIG's technological independence, which guarantees an optimally functioning workflow and maximum efficiency thanks to optimum embedding in the existing software environment.
No eProcurement without an assortment: quickly create an offer
A critical factor for every eProcurement project is the availability of products and services! To ensure the widest possible range of products and services on the eProcurement platform, DIG offers four ways to quickly build up the necessary range in practice.
Desired article not in the system? No problem!
eProcurement is constantly evolving in line with changing requirements. One way of requesting missing items in a structured manner is the free text form. By using predefined mandatory fields, this guarantees that the description follows clear guidelines, i.e. the purchasing department receives all the necessary information for procurement. The requester also creates a G/L account and material group. If desired, the free text form can also be activated for certain user groups only. Depending on the defined process, the input is then processed further as an electronic order or electronic purchase requisition (BANF). Optionally, other DIG solutions such as the supplier inquiry can be integrated via the DIG tendering module. The latter enables intensive sourcing thanks to a high degree of automation - and not only saves up to 80% in process costs, but also automatically leads to better purchase prices.
If the requester already has a concrete offer in mind, this can be forwarded to the purchasing department and an approval procedure can be started. But any other process (e.g. via purchasing service providers - more information below) can also be set up. DIG thus modulates the procurement process exactly as it is required and how it best suits the company's organization. In order to avoid expensive outliers, it is ensured that the requester can make all procurement requests in one and the same system.
Punch-out: knockout for the Maverick Buyer!
Maverick buying (unauthorized procurement) causes additional costs of up to 15 percent in indirect purchasing. Thanks to the many catalog suppliers that DIG has already connected to electronic procurement, this can be remedied quickly!
Stock and subsequent order entry
An important function is often the comparison of a request with the stock level. To do this, the item is placed in the shopping cart as usual and queried in the background via an interface, e.g. in the ERP system. However, this comparison can also be made with data from all other conceivable systems (e.g. ispro NG), so that DIG eProcurement can always be optimally integrated into the historically grown IT landscape of a company. A stock level can also be created in the form of a catalog item and thus managed centrally via the DIG platform. Even situation-related procurement processes outside the platform (e.g. ordering an urgently needed spare part directly by telephone) can be brought into order by subsequently recording and properly booking them!
Integration of purchasing service providers
The service of a purchasing service provider, such as the full-service purchasing service provider Provendor GmbH, can also be optimally integrated into DIG E-Procurement: items that are not available from currently connected suppliers can still be ordered via the platform. A digital purchase requisition (BANF) is simply entered in the free text form and forwarded to the service provider or accepted directly by the purchaser, specifying data such as estimated price, quantity, product group, desired or mandatory suppliers, etc. The processor can continue to change the request at any time. The request can still be modified by the processor. The purchasing service provider then sends binding offers, which the requester checks accordingly. If, for example, the price exceeds defined limits, the designated approval processes are activated.
ECLASS for exact C-part evaluation
The qualified evaluation of procurements of indirect materials has many advantages: on the one hand, the supplier structure can be strategically optimized on this basis, and on the other hand, the inventory overview is guaranteed. This is based on the ECLASS classification standard, which identifies goods and services in detail across all sectors. For consistently correct account assignment (i.e. allocation to material groups and G/L accounts), the company-related assignments are transferred to DIG eProcurement so that indirect material can be posted under uniform aspects and the procurements can be evaluated at the touch of a button. The necessary reporting options are of course part of the DIG eProcurement software.
"Minus 1% procurement costs is like a 20% increase in sales."
The leading global management consultancy A.T. KEARNEY has established that optimizations in procurement bring convincing results particularly quickly. The ECLASS system is currently the largest repository of descriptive characteristics based on international standards - new classification classes, blocks, characteristics and values are constantly being added. ECLASS is the only standard worldwide that enables automatic migrations and creates the basis for supplier transparency and comparability. In some cases, tenders can be more than doubled in speed.
Buy services electronically
Services can also be made available in a standardized way via the e-procurement platform. A separate tendering tool automatically obtains several offers based on a service specification for the specific requirement and compares them with each other. The service is then created as a virtual item and ordered as usual. The "goods receipt" is noted in the system by the service provider based on the actual expenditure. Read our case study to find out how services are procured decentrally via DIG eProcurement in practice.
Vorteile eProcurement
From adherence to compliance guidelines to the reduction of maverick buying:
- Lower process costs, more process stability
- Avoidance of errors
- Standardization of processes
- Shorter throughput times in the ordering process
- Lower cost prices, fewer suppliers
- Increase in supplier reliability
- Future-proof further development of purchasing
- Digital purchase requisition (BANF)
Automatic shopping cart creation with eBANF
The DIG eBANF interface enables further automation: For example, a specific shopping cart can be created based on article numbers. Examples of applications include parts lists for machine maintenance, which can be ordered automatically by the maintenance technician at the touch of a button (see also our case study on ispro-NG integration). The combination with a best price logic is also interesting, in which, for example, different suppliers enter partial products with daily updated prices into the eProcurement system. In this way, orders can be placed based on the MRP list from production planning with automated price comparison among any number of article masters, including order quantity optimization, and shopping baskets can be created accordingly.
Goods receipt posting in the eProcurement system
After approval of the electronic order (release), it is sent to the supplier via the desired channel (EDI, WebEDI, e-mail with PDF). As soon as the delivery has been made (goods receipt centrally or directly to the customer), the receipt of the goods is noted in the ERP system or directly in eProcurement (the status can also be replicated from the ERP system). In practice, it is often the case that the delivery is made to the customer, but the customer does not have an ERP license or the booking in the ERP is complicated. The simple alternative to this: A note of the goods receipt in the eProcurement system, which is then transferred directly to the ERP system!
