Building bridges: eProcurement – definition and how SHIPSTA takes logistics procurement to the next level
Bridges shorten distances, help to avoid detours and connect people with each other. eProcurement builds bridges for modern procurement management. The logistics sector is now also reaping the benefits of this. SHIPSTA helps shippers find carriers faster than ever before.
eProcurement is the next logical evolutionary step for procurement in times of digital transformation. The “e” stands for electronic and always indicates the conversion of analogue processes into digital processes. Digitisation, however, does not change the underlying principle: services and goods are procured at the best possible conditions and integrated into the company’s value chain. The resulting advantages are reflected in competitive prices and make an integral contribution to corporate success and respectable balance sheets.
eProcurement is a B2B topic and already a proven procurement concept for various industries. Companies procure everything from construction machinery to Chardonnays on industry platforms. There is a fundamental difference between supplier systems and procurement systems, also referred to as the sell side and the buy side. Government institutions also use eProcurement, for example when it comes to public contract tendering. Companies that can provide the requested service submit their offer electronically.
The third form of electronic procurement is the marketplace system. Since neither the buyer nor the seller dominates this electronic marketplace, it is regulated by a third party – the provider of this many-to-many concept.
eProcurement reduces process costs
Initially, eProcurement significantly reduces process costs for procurement management because electronic procurement facilitates the bundling of individual process steps thanks to automation. Individual steps such as, for example, release of the purchase requisition, market probing, offer analysis or invoice receipt posting can be automated in this way. In a second scenario, and depending on the quantity and value of the transported goods, the high market transparency of eProcurement systems can lead to purchasing advantages.
The digital logistics procurement platform from SHIPSTA now takes all these advantages of eProcurement to the next level for the logistics industry. Freight volumes for long-term contracts (contract buying) are tendered worldwide via SHIPSTA FLEX on this digital procurement platform. Digitised procurement processes, such as those provided by SHIPSTA, save valuable time and free up personnel resources: whereas every single step in procurement management previously required personal awareness, shippers and carriers are closing deals thanks to the innovative solution from SHIPSTA, while others are still sitting there waiting for an e-mail to arrive.
eProcurement in logistics
eProcurement with SHIPSTA reduces process costs in logistics by up to 65%, because, for example, the plausibility checking of individual freight offers is integrated and offers are evaluated with the click of a mouse.
Last but not least, the eProcurement platform from SHIPSTA succeeds in eliminating any media discontinuity from the procurement processes. Where previously orders, contracts and rate sheets were printed out and often sent by post, the entire document workflow is now digital: from nomination to signing the NDA. SHIPSTA thus minimises the error rate while once again saving costs – digital archiving of the transaction included.
Our spot buying marketplace ShipstaGO will take logistics to the next level in 2020. The combination of artificial intelligence and deeply anchored market experience generates initial offers in response to a shipper’s inquiry within seconds, regardless of whether goods are to be transported by sea freight, truck or air freight. Even the “bridge” connecting shippers and carriers is automated by means of supplier matching. Big data and machine learning suggest suitable carriers within seconds, thus eliminating the tedious search and qualification of transport service providers.
SHIPSTA shortens distances, avoids detours and connects people with each other. SHIPSTA builds bridges.
SHIPSTA powers smart logistics procurement with a digital platform that connects shippers and carriers to ensure a frictionless procurement process for spot and contract buying, entirely online. It automates complex tasks, provides unrivalled visibility and supports fast data-driven decision-making. Designed and built by experts in logistics procurement, it is bringing transparency, automation and efficiency to the global logistics industry. It is used by some of the world’s largest companies to respond to market volatility, control freight costs and manage risk. The company was founded in 2015 and is based in Mertert, Luxembourg and Hamburg, Germany.