Benefits of e-procurement for SMEs
When we’re talking e-procurement solutions, it’s easy for one important part of our audience to feel we’re speaking to someone else. After all, surely small and medium enterprises (SMEs) aren’t really set to benefit from this digital opportunity? That’s a mistake it’s important to address.
Malaysia is a nation driven by SMEs, forming the backbone of the national economy. They make up over 97% of total businesses, employing over 65% of the national workforce. In 2016, Malaysia’s crucial SMEs accounted for 36.6% of total national GDP. Energising that growth can have a hugely positive and wide reaching impact for the whole economy.
So when we talk about the benefits of e-procurement for business, it’s important to understand that your business could benefit too. These are e-procurement solutions that don’t just fit the big operators, but are designed to support those critically important SMEs that form the firm foundation of Malaysia’s economy.
What is e-procurement?
The first challenge to address is perhaps the most simple – what is e-procurement? We’re all aware of the vital function that procurement plays in an effective business. The reality of SMEs often means that key individuals are performing several essential tasks for a business. How does this new opportunity fit into this busy working landscape?
Quite simply e-procurement is lifting those regular procurement functions carried out in a business such as purchase orders, auctions, and tender events, and streamlining them through digital processes. That means taking the often laborious paper-based workload and transferring it to an easily referenced and accessed digital system, with the help of specially designed procurement software.
Like any digital opportunity, there is often a significant fear of change and perceived barriers to adoption. These are often viewed as insurmountable hurdles by smaller businesses. Without the sprawling, dedicated IT teams of large corporations, how are these opportunities supposed to be properly embedded? More importantly, is there really a benefit to SMEs in doing so? Let’s tackle the benefits first.
What does efficient procurement do for SMES?
The strategic goals of procurement are the same whether you’re the world’s largest company, or the most specialist Malaysian construction SME. Effective procurement is about reducing costs, managing risks, and ultimately providing a more efficient business. These key areas are where the right e-procurement solution can deliver real benefits for SMEs.
There are great reasons to be optimistic about this opportunity for Malaysian SMEs. Studies have shown that these are organisations recognised for their level of technological understanding. Equally important is adopting the benefits from that expertise. Exploring the SME landscape shows clear advantages in adopting e-business solutions, from improving the reliability of business and cost savings, through to a reduction of business errors that generate significant strategic risks.
These opportunities go beyond a simple theory, but have been demonstrated to show significant benefits for SMEs in practice. A 2010 study identified four important cost savings for SMEs, including almost 90% reduction in lead time order costs, and 72% savings on the opportunity cost of capital. But realising these benefits not only requires understanding the opportunity, it’s picking the right software to enable your business to succeed.
A simple solution with Procurehere
When it comes to delivering efficient solutions for business, simple is often the answer. That simplicity is the guiding concept behind Procurehere’s user-friendly e-procurement solution.
We wanted to create a tool which is easily adopted by any business, unlocking the potential of e-procurement to organisations of any size. Our cloud-based solution requires no extensive, cost-limiting IT infrastructure. Our subscription pricing structure is clear and transparent, without hidden costs or complicated package options. More importantly our software is designed to be the simplest on the market, meaning it can be picked up by anyone, anywhere, at any time, and quickly and rapidly embedded within a business.
What that delivers for SMEs is an e-procurement solution which requires no formal training, with an extensive online knowledge base and support network that means you can adopt Procurehere at a speed which best suits your business.
Over the last fifteen years Procurehere has facilitated over RM4 billion in procurement spend, demonstrating average savings of 17% per event. Alongside the tangible financial benefits of our auction and tender processes, SMEs benefit from the significant time savings through streamlined and easy to use processes. That means freeing up your time with which you can unlock wider value in your business.
Procurehere is a powerful tool designed to put our users first. That means ensuring a simplified system that delivers the functions our customers need, that is easily embedded into your business, and doesn’t require significant capital expenditure to adopt. That’s a solution built with you in mind, and ready and prepared to help empower Malaysia’s vital SMEs.
Explore what Procurehere’s simplified e-procurement can do for your business.