The purchasing and procurement functions are key to extract maximum value from the supply chain. In this brief, learn how to maximize the opportunity by leveraging Information Technology.

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The Impact of Information Technology on Procurement and Purchasing

Technology has a revolutionary effect on different matters of our life. The commercial sector is at the top of beneficiaries of the latest technologies. Many organizations take advantage of information technology to reduce costs and enhance their profits.

The following are the main benefits of using information technology in the procurement and purchase process.

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1. Data Collection

The procurement department faces many challenges in the procurement process, and data collection is one of them. 

Usually, after generating the demand and approval of purchase requests, procurement personnel have to contact various suppliers. If they must find the suppliers from scratch, it is a tedious and time-consuming process.

Information technology helps collect the data in a centralized platform (ie database) that  aids in analyzing to analyze the supplier behavior. 

It also enables the procurement officers to compare prices, quality, payment terms, and many other criterions to select an efficient supplier.

2. Data Collection

Global procurement is one of the most attractive features of E-procurement applications. It compares the cost of goods purchased from local suppliers with international suppliers. 

Procurement officers can get global suppliers’ gross value, including freight charges, customs charges, insurance, and any related cost.

It is convenient for the management to compare the price and quality of goods supplied by local and international suppliers. They can select the more cost-effective supplier and in favor of the organization.

3. Improved Operational Performance

Automation in the procurement process provides various benefits for organizations to reduce operational costs. It let the management assess the delivery time, and enable them to track RFX events and track purchase orders.

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However, management can manually do all these activities , but it takes a lot of time and resources, hence the need for technology assistance.

Reduce Errors

The integration of information technology in organizations reduces the need for paperwork in all departments. 

It is easy for organizations to save the information electronically. It helps reduce paper, bureaucracy and make it easy for the employees to find the previous record and data of suppliers.

It is also beneficial to reduce the risk of human errors while comparing  past orders.


Information technology has a significant impact on the process of procurement and purchasing. The technology helps collect the data, but it is also much effective in reducing errors by saving all the necessary information electronically.