Which of the following is a benefit of e-procurement in supply chain management?

E-procurement in supply chain management significantly enhances efficiency and reduces costs through streamlined online processes. By utilizing digital platforms for procurement, organizations can automate various functions such as order placement, approval workflows, and invoice processing. This automation minimizes the need for manual processing, which is often slower and more error-prone.

Furthermore, e-procurement systems enable better tracking and management of purchasing activities, helping to identify savings opportunities, reduce procurement cycle times, and improve supplier performance. By leveraging technology, businesses can also integrate their procurement activities with other supply chain functions, leading to a more cohesive and responsive operation overall.

This transformation not only leads to cost savings but also allows companies to allocate resources more effectively, focusing on strategic sourcing and supplier relationship management rather than administrative tasks. The benefits of enhanced efficiency and reduced costs are key reasons why organizations increasingly adopt e-procurement solutions.