Improving the Procurement Workflow With an eLogistics System

An eLogistics system can offer many benefits to improve a procurement management process. Learn how to incorporate eLogistics for better outcomes here.
Written by:  Bridey Joyce
Last Updated:  April 15, 2024
managers discussing logistics from elogistics system

No matter what supplies you need for the office or an online store, getting them is half the fun. As anyone who has chased down a misdirected order or tried to review the expected discounts and terms on a shipping receipt can tell you, we’re using the term “fun” loosely here. 

The logistics industry is infamous for incorrect and opaque billing, so using an ecommerce logistics site is vital to remaining competitive. It can bring visibility to the order process, enable more informed purchasing, and ensure that what you order (and pay for) is what you receive. Even simple orders moving through the supply chain may greatly benefit from logistics automation's efficiency and cost improvements.

Software solutions can automate and enable logistics activities that power procurement and fulfillment centers. They can optimize delivery between locations, track shipments, centralize purchasing information, and give teams the tools to recognize and reconcile every supply order that comes through the door. 

This article outlines the benefits of using logistics technology features in the procurement management process. It also shares the benefits of upgrading to software-based supply ordering, logistics, reporting, and reconciliation and explains how software makes the whole process easier.

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What is an eLogistics system?

An electronic logistics platform, or eLogistics, is a digital method of managing the flow of goods and resources from order to delivery. It incorporates technology such as a management platform to efficiently and effectively facilitate product tracking, data warehousing, warehouse management, and transportation. Ecommerce stores, traditional brick-and-mortar locations, and many other business types can benefit from eLogistics software.

An eLogistics system leverages software to automate processes, enhance supply chain visibility, reduce operational costs, and improve customer service. By integrating advanced software into the supply management system, eLogistics enables businesses to optimize their operations and procurement activities, including:

  • Order requisition
  • Purchase order processing
  • Inventory management
  • Order fulfillment 
  • Shipment tracking
  • Delivery and reconciliation
  • Payment processing
  • Spend reporting

In a traditional logistics system, many of these processes would be manual, cumbersome, and inaccurate. The ultimate aim of eLogistics is to create a seamless process that accelerates the movement of goods and ensures accuracy and reliability throughout the supply chain.

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The Procurement Strategy Playbook for Modern Businesses

Download the ebook to learn how to modernize your procurement strategy and realize the benefits of tech-enabled procurement.

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7 Top benefits of eLogistics software

Among the many benefits of moving to automation and software-based logistics management, consider these seven top reasons for implementing eLogistics software. 

More cost savings: By automating purchase-to pay-processes, software reduces manual labor costs, paperwork, and errors. It also helps businesses optimize inventory levels while avoiding overstocking or out-of-stock issues. Appropriate inventory counts reduce the costs of inventory storage and inventory management.

Enhanced supply chain visibility: With access to real-time tracking and monitoring of supply orders, businesses gain complete visibility into their supply chain. This allows better decision-making, more efficient procurement planning, shorter delivery times, and improved stakeholder productivity and satisfaction.

Higher operational efficiency: The improved operational efficiency gained through an eLogistics software solution streamlines processes, reduces repetitive manual tasks, and shortens cycle times. It minimizes data gaps and human error, enabling more accurate reporting and management. Efficiency operations boost productivity and significantly enhance the overall performance of logistics operations.

Advanced reporting functionality: eLogistics software offers advanced reporting features, helping businesses generate comprehensive insights and analytics into procurement and operations. This functionality supports data-driven decisions by providing real-time visibility into performance metrics, trends, and areas for improvement. It helps optimization in the supply chain process and enhances strategic planning capabilities.

Scalable procurement: Procurement logistics software streamlines procurement processes, enabling businesses to scale operations with less effort. It automates order management, approval routing, purchase order processing, and supplier communication, allowing businesses to adapt to increasing demands without adding supplemental resources. This scalability ensures companies can expand their procurement activities efficiently, supporting growth while maintaining operational integrity.

Stronger compliance: Software enhances vendor compliance monitoring by automating and standardizing the enforcement of procurement guidelines and contract conditions like discounts and delivery fees. It ensures consistent adherence to contractual terms, quality standards, and legal requirements across all transactions. This systematic approach reduces errors and enables vendor risk management, fostering stronger, more reliable supplier relationships.  

More accurate budgeting: Adopting an eLogistics platform enables more accurate budgeting through enhanced visibility into spending and cost-saving opportunities. It offers real-time data analysis, helping businesses more accurately predict expenses, optimize inventory levels, and reduce unnecessary costs. Some systems also ensure budget compliance via guided purchasing and suggested vendor selection. These parameters ensure that every purchase meets compliance standards and receives adequate review from interdepartmental stakeholders.

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The Procurement Strategy Playbook for Modern Businesses

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10 Features to look for in an eLogistics platform

Finding an eLogistics and spend management tool to suit your company’s needs requires research and insight into your current process. Understanding how procurement and supply chain management run will help you craft a stronger system with the right tool for the job. 

When looking to eLogistics to streamline the ordering, delivery, and payment process, look for tools with these top features:

1. Automated purchase order management: Implementing a system capable of automatically generating, sending, and tracking purchase orders can drastically reduce the manual labor involved in the AP process. By automating these tasks, businesses can also significantly minimize the likelihood of errors, leading to a more efficient and accurate procurement process. This innovation not only saves time but also enhances overall operational efficiency.

2. Automatic general ledger (GL) coding: Automatic GL coding streamlines procurement's accounting and financial management aspects. Businesses can reduce data entry and improve record accuracy by automating reporting and tying procurement to appropriate GL accounts. Automation ensures that each purchase is accurately categorized. This makes it easier for financial teams to track spending, manage budgets, and prepare for audits.

Automated GL features simplify bookkeeping tasks and provide valuable insights into spending patterns. This gives leaders confidence in data and helps lead informed decisions about where best to allocate resources.

3. Real-time order tracking: Tracking features allow buyers to monitor orders in real time, offering a distinct advantage in supply chain management. Order tracking facilitates comprehensive insights that help prevent backorders and ensure access to similar supplies. This means stakeholders always have essential items to perform their roles and advance organizational goals.

4. Budget compliance features: When searching for a platform, prioritize options that offer guided purchasing and dynamic budget constraints by product, category, department, role, or team. Budgetary control features ensure all purchases comply with the company's financial policies to prevent overspending and promote fiscal discipline within the organization.

5. Supplier management tools: Logistics and procurement software allows teams to streamline the supplier management process using advanced tools to improve communication, track by-vendor spend amounts, and enable better contract management. These tools simplify interactions and align parties for more productive and mutually beneficial vendor relationships.

6. Integrated payment processing: Selecting a system that handles payments directly within the platform streamlines the procurement process and eliminates the need for external payment methods. Integration simplifies transactions and reduces the paperwork and administrative tasks involved in purchasing. It makes the process more efficient, enhances stakeholder experience, and improves customer loyalty.

7. Spend analytics and reporting: Access to detailed insights on spending patterns, supplier performance, and procurement efficiency helps organizations make more informed decisions. This comprehensive understanding enables a deeper analysis of financial trends and identifies potential areas of risk or improvement. Overall, it facilitates the development of strategies to enhance operational efficiency.

8. Customizable approval workflows: Customizing approval workflows to align with the organization's unique structure guarantees smoother operations. A customizable system allows administrators to craft seamless process integration. It also ensures buyers adhere to internal controls, improving efficiency and compliance. 

9. User-friendly interface: A procurement and logistics tool should be easy enough for a buyer or stakeholder to pick up without extensive training or resources. Look for software with intuitive navigation and easy-to-find features that guide the user or customer and improve adoption.

10. Plenty of scalability: Seek out a procurement software solution designed to scale alongside the business. It should be flexible enough to handle increasing users, additional transactions, and dynamic permissions as the company evolves. This foresight ensures the infrastructure won't become a bottleneck, allowing for seamless growth and expansion.

Streamline supply logistics with

A procurement and logistics tool can significantly improve the efficiency of your procurement function. Selecting a tool that offers flexibility, visibility, and integration opportunities with existing systems offers new users and buyers a well-defined on-ramp to ordering and managing incoming supplies.

The features available in a platform like make it easier for new and seasoned procurement professionals alike to reap the rewards a software solution offers, such as:

  • Deeper visibility into spend and supply chain management numbers
  • Increased cost savings for the supplies and consumables your organization uses most
  • Scalable software for procurement administration that helps businesses thrive at any stage

Learn more about how modern procurement strategies can help you get everything you need for your business with full visibility and control. Download The Procurement Strategy Playbook for Modern Businesses today.

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