Paperless procurement represents the set of electronic/digital processes used to source a product or service from suppliers. From managing the categories of items-to-be-sourced to generating POs and approving invoices and sending them to the accounts department, every process that’s part of paperless procurement happens without exchanging any physical documents (hardcopies).
Benefits of Paperless Procurement
There are several benefits of employing paperless procurement in the supply chain process.
Paperless = Quick Turnaround
Since paperless procurement primarily banks on digital resources, it offers a significantly quicker turnaround than paper-based sourcing activity. In paperless procurement, a single PO or RFQ can be created and dispatched within a few minutes.
Paperless Procurement Helps You Make Your Operations Sustainable
Sustainability is becoming a major CSR goal for enterprises. Going with paperless procurement that involves a smaller carbon footprint can reflect an enterprise’s determination to become an eco-friendly entity.
Paperless Procurement Rules Out Errors and Losses
Paperless procurements operate on well-thought-out document templates where there is little room for human errors. Similarly, a paperless PO/RFQ/invoice/approval will not get lost like a regular hardcopy document.
Paperless Procurement Consolidates the Sourcing Activities
Usually, a software application provides a platform for paperless procurement. This way, an enterprise gets to consolidate all its sourcing/purchasing activity in one place.
Paperless Procurement Enables Remote Working
Procurement teams can work from remote locations when they don’t have to work on physical files and folders.