E-Procurement In Accounting: A Macro Perspective Of Selection Techniques

Abstract

Selecting an E-procurement accounting package is a complex process because of rapidly changing technology and the variety of options proposed by software providers.  There are many e-procurement packages available in the market, but most of these packages simply automate the ordering process.  Using an integrated system to place orders over the Internet can save time, reduce postage and paper cost.  But without integrating e-procurement packages within a company’s finance and accounting systems, one of the largest opportunities for savings is missed out.  To achieve full advantage of e-procurement, the procurement system must be integrated not only within the financial system but also with vendors and customers.

There are two main categories of e-procurement solutions: 1) buy-side and 2) marketplace.  While the full range of benefits might be better secured with buy-side procurement solutions, application costs make marketplace solutions more affordable.  For smaller companies, costs of development of buy-side solutions will most often outweigh benefits and therefore marketplace solutions will be more suitable.  For large businesses that choose buy-side solutions, careful evaluation is required in selecting the best software that can best suit the company requirements.  No matter how good a product is, users must still depend on reliable and continued support from vendors.