Definitions


eProcurement - is the business-to-business purchase and sale of supplies and services using the Internet,  Most commonly, companies purchase eProcurement software to automate internal processes or use an hosted solution. Typically, such applications offers employees a choice products from a number of electronic catalogues containing goods that have been pre-approved and priced by corporate purchasers. The catalogues can be hosted either internally or by the company, or software users can 'punch out' through the corporate firewall to use catalogues hosted by suppliers.  ARR Spend Management  Solutions eProcurement tool is a hosted solution that requires little or no IT input.

Spend management - is how to spend money to best effect in order to build products and services. The term is intended to encompass such processes as outsourcing, procurement, eProcurement, and supply chain management.

eAuction - eAuctions are where selected bidders submit offers electronically against the purchaser’s specification. All communication following and including the invitation to pre-qualified bidders to submit new prices and/or values must be instantaneous (electronic). Electronic auctions can be used for goods, services and works. Only price and quality elements which can be expressed as a value suitable for incorporation within a formula can be included at the auction stage. Other quality aspects must be assessed prior to or after the auction stage. Equipment needed to participate in electronic auctions is readily available at a reasonable cost and there is no obvious reason why their use should be detrimental to markets or customer relations.


eInvoicing - or electronic invoicing is an internet-based solution for secure exchange of electronic invoices between suppliers and buyers.

Business benefits:

  • Reduced storage space requirements and elimination of manual filing of paper invoices
  • Reduced cost of handling invoices
  • Improved relationships with suppliers, because the approval and payment cycle is significantly reduced
  • Increased productivity
  • Reduced errors


Manual invoice matching is a very costly and labour-intensive activity which requires the manual matching of the paper invoice sent by a supplier by post, with the original order (paper or electronic) and delivery note. The process of matching documents in order to approve payment can be automated to free up staff to spend time on more valuable activities.
The purpose of electronic invoicing is to streamline the administration of the billing and payment process by eliminating paper handling for both buyers and suppliers. eInvoices can be archived in an electronic format making it easier and cheaper to retrieve them when necessary.

 

 
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