Indian procurement industry to focus on e-procurement
Due to the global downturn and economic slowdown in India last year, organizations and Indian multi-nationals have begun to focus on the latest procurement technologies to reduce purchasing and production costs. There seems to be greater demand for supply and procurement resulting in complex processes and production cycles. Taking a cue from global companies, industries in India are investing heavily in ‘Procure to Pay’ (P2P) solutions. Procure-to-Pay systems automate the full purchase to payment process, connecting procurement and invoicing operations through an intertwined business flow that automates the process from identification of a need, planning and budgeting, through to procurement and payment.
IQPC (International Quality and Productivity Center), an event services company has conducted market surveys on P2P solutions in India and the Middle-East. The findings have shown that there is a disconnect between suppliers and the procurement departments in using these latest e-procurement solutions, although the trend is catching up. Their research has also shown that paper work and lead time in procurement cycles are significantly reduced and greater visibility in the payment cycles are achieved thereby increasing operational efficiency.
An important application of P2P solutions is e-procurement. The growing popularity of e-procurement and e-options has resulted in these applications being implemented in Government agencies, FMCG, manufacturing and retail chains in India. According to the World Bank, “In Karnataka, India, 20 million land records were computerized at a cost of US $4.2 million — the annual savings add up to US $18.3 million. In Sao Paulo, the investment in an e-procurement system recouped in 5.7 days. Korea’s US $80 million investment brought US $2.7 billion in annual savings.” This has also eradicated corruption and red tape in several organizations.
To promote e-procurement in India and take procurement to the next level, IQPC will launch Procure to Pay India 2010 Forum, the Indian edition of its global Finance IQ events from 28- 29 September at the Le Meridian, Mumbai. The event will feature presentations from organizations like Tata Steel, Pepsico - FritolayNestle India, Bharat Petroleum, and Cadbury India amongst others.
- Internet Revolution Still Bypasses Rural India
- Facebook Plans To Change The World With AI, Drones
- FAQs: The Death of Section 66A
- India x86 Server Market Shows Signs of Growth
- How IoT Is Empowering Transportation Industry
- CMOs Need To Go Digital Or Go Bust!
- Twitter CEO Dick Costolo Upbeat On India Market
- How Semiconductor Market Is Poised For Big Growth
- Building A Culture Of Innovation
- Dell Secures Top Rank In India's PC Market