For large organizations, even a 5 to 15 percent reduction in maverick purchasing can lead to millions in savings, as every penny saved has a direct impact on the organization’s bottom line.

MDSL eProcurement module automates and controls the entire procurement workflow from the initial web-based request through an internal multi-level electronic authorization, and does this against customizable business rules. eProcurement generates an electronic purchase order for the desired services and ultimately updates the asset inventory with all technical, billing and charge back information. eProcurement ensures expense control, reduces processing time and costs, enhances accuracy, ensures compliance and provides a full and detailed audit trail.

The many benefits include:

Transaction Benefits

MDSL eProcurement solution leads to significant time savings and ensures an accurate asset inventory:

• Global, automated, standardized processes incorporating best practices and eliminating unnecessary activities
• E-enabled relationship with suppliers, which speeds procurement cycle times and facilitates supplier performance improvements.
• Greater data accuracy, which minimizes ordering inaccuracies and provides the essential foundation for better management through measurement and analysis.

Compliance Benefits

In many cases within an organization, compliance and maverick spending is a significant issue – not because employees deliberately purchase outside preferred arrangements, but rather through a lack of awareness. eProcurement addresses this through tools such as common catalogs and standard order processing and approval processes.

Compliance will be achieved due to:

• Simple and quick procurement-to-payment (P2P) process including a user-friendly interface and pre-sourced catalogs tailored to the requirements of the specific services.
• Simple and quick strategic sourcing process with standard procurement processes and tools, as well as easily accessible information.
• E-procurement system, the only purchasing mechanism available.

Management Information Benefits

The fact that key information (cost center, services codes, etc.) is associated through the TEM database to each user dramatically reduces coding errors and provides highly detailed and easily accessible data. This is essential to maximize the financial benefits of strategic sourcing. A successful e-procurement implementation will provide high quality, detailed management information and will negate the need for separate data warehousing or resource-heavy data mining.

Price Benefits

Improve supplier relations. Greater controls, efficiencies and analysis in the procurement cycle will free up time for both purchasers and suppliers to concentrate on the identification of other areas where value can be added. For example through identification of high volume areas of purchase it will be easier for purchaser to predict level of spend with their suppliers at the time of tender to leverage greater value.

Payment Benefits

eProcurement enables electronic payment of invoices. This includes the ability to control cash flow better and to manage the efficient payment of suppliers due to more streamlined procurement processes. This provides quick and accurate information to the accounts payable department.

During negotiations the procurement manager can more credibly guarantee the supplier a level of prompt payment not possible prior to the eProcurement solution.