With the launch of the 5G Network, our government has made it clear that India’s growth will be helmed on the back of digitization.
Micro, Small & Medium Enterprises (MSMEs) and Small and Medium-sized Enterprises (SMEs) will greatly benefit from business management software, specifically procurement platforms, with powerful tech features to streamline and automate processes. These platforms can help effectively manage inventory, track sales and expenses, and collaborate with other businesses. Furthermore, procurement platforms offer features that enable MSMEs & SMEs to connect with a wider range of suppliers and customers, thus increasing reach and helping you grow your businesses beyond your geography. These platforms also assist with E-NACH, CKYC/OKYC, E-sign, and video sign, making it easier for you to complete crucial agreements.
Business management tools help B2B and B2C businesses purchase and sell products and services and revolutionise traditional procurement channels. In recent years, the growth of information and communication technologies has led to the shift of many public institutions and private businesses to e-procurement for increased efficiency and effectiveness.
For businesses to survive and stay competitive in the market, it is crucial to reduce the costs of materials and services by procuring from low-cost sources. E-procurement using business management softwares, especially the ones including internet purchasing, electronic ordering, and integrated automatic procurement systems is a cost-effective and easily accessible method of procurement. E-procurement has simplified ordering, reduced paperwork, eliminated middlemen and fraudulent transactions.
MSMEs form the foundation of a nation's economy and e-procurement will be a key driver of MSME growth and increased productivity.
Here are a few ways how a business management platform can boost your business.
Business management software offers cost saving as it eliminates the need for middlemen, allowing businesses to make purchases directly from the government or source party (vendors). This ensures that products are authentic and priced genuinely, reducing the chances of fraudulent activities and monetary loss. Additionally, a business management tool can lead to savings in cost of sales, administrative cost, and staff allocated to logistical tasks. The use of technology in e-procurement can eliminate the need to travel for bidding and paper processing, resulting in a reduction of cost associated with organising administrative work. The digitization of information can drastically reduce the cost associated with man-hours required.
The migration to business management software will greatly improve the internal processes of not just MSMEs but also other industries.
The improvements include
These process improvements will lead to significant breakthroughs for the MSME sector.
Business management tools will decentralise procurement and increase time availability, for purchasing specialists to explore and negotiate strategic issues. You will have a wider range of suppliers to choose from, and improved communication with suppliers. You will also have access to a real-time reporting system that allows you to openly compare spending with a budget, and quickly resolve any issues that arise. Additionally, the organisational process will become safer with minimal chances of fraud due to transparent contract details such as terms and conditions and order time.
Over time, the decentralisation of power concerning purchase decisions will increase efficiency in the purchase department. The restructuring of the supplier base will also enable the purchasing department to maintain accurate records of supplier details.
After the tools are set up, you will need these procurement planning strategies to put in place an efficient system to optimise and fast-track sourcing.
One of the significant benefits that a business management tool will bring to the MSME and SME sectors is the elimination of paper-based processes. This will allow you to participate in a larger number of tenders in a shorter period of time, something that was previously unimaginable.
The expansion of the geographical reach of platforms will enable the selection of contractors from more dispersed locations, something that was not possible before. This will open up an expanded range of potential customers and business opportunities for you, as going digital will eliminate the need for a physical location. You can now enter the international market at a fraction of the cost and have the opportunity to compete with larger companies in your industry.
Business Management Platform will enable SMEs and MSMEs to take advantage of third-party trading platforms with limited or no investment in managing your operations and transactions. This will lead to increased opportunities for growth and increased profit margins.
Despite MSMEs playing a significant role in the nation's economy, competition often holds you back. In order to sustain your position, MSMEs need better access to customers. Business management software makes this possible and many more breakthroughs are expected in the future.
Digitisation is growing rapidly and MSMEs that are still operating offline must realise that technology and innovation are essential to stay competitive. E-commerce is no longer a utopian idea but a business reality. Studies have shown that incorporating business management tools lead to positive outcomes across sectors. E-procurement is beneficial, low-risk, user-friendly, and easily compatible.
Apart from automating the tough part of your business, some business management tools like Bizongo go a step further to help you procure timely liquidity, so that your business is always running smoothly.
MSMEs, like yours, play a vital role in a nation's economy and are potential future conglomerates. Business management software will be a key driver of MSME growth, increased productivity, and efficient functionality. It will provide many benefits such as cost savings, time savings, and financial growth due to increased productivity. The ordering process will be simplified with reduced paperwork, decreased redundancy, less bureaucracy, elimination of middlemen and fraud-free transactions. Sign up for Bizongo’s revolutionary Platform as a Service (PaaS) and get on the road to the future.