Why eTendering is the Future of Procurement in the Construction Industry?

In today's ever-evolving business landscape, where compliance requirements are growing stricter, and complexities are rising, it's becoming increasingly vital to eliminate manual processes to minimise risks. ETendering has emerged as a game-changer in streamlining the procurement process for the construction industry. However, it's important to understand the drawbacks of manual procurement processes in order to make informed decisions.

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Let's explore the six significant drawbacks of manual tendering processes:

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1. Processes:

Manual tendering processes are time-consuming, slow, and tedious, leading to errors and fatigue. The effort required for record-keeping is substantial, and the need to record and retrieve decisions when requested by auditors or other stakeholders adds to the burden. Defining the segregation of responsibilities and implementing maker-checker roles often demands additional manpower. Furthermore, staff turnover can increase the risk of redundancy. By implementing a fully automated eTendering system, efficiency can be significantly improved, and errors can be reduced.

2. Storage & Retrieval:

Proper storage facilities and systematic organisation are necessary for manual record-keeping. Records and files must be indexed, labeled, and securely stored in fireproof cabinets with easy retrieval systems in place. Maintaining good storage systems requires ample space, and records must be kept for many years to comply with legal requirements. Quality storage systems come with a high price tag, and the storage location must be protected against natural disasters, fire hazards, and theft.

3. Changes & Amendments:

Tracking and making changes and amendments in a manual process can be time-consuming and cumbersome. Documents need to be retrieved to ensure proper continuity and consistency, as well as for pre-audit checks. Tracking changes and maintaining document history becomes particularly challenging, especially for transactions requiring multiple alterations.

4. Data Security:

Data security is of utmost importance, and many countries have enacted legislation to address this issue. Organisations must ensure responsible handling of the substantial amount of data and information they deal with, including that of their vendors. Manual processes make it difficult to implement a foolproof system, and errors during creation and transmission can compromise data security.

5. Maverick Buying:

Manual processes often suffer from a lack of control, which exposes the organisation to risks in managing prices with vendors. The level of risk further escalates when individuals within the organisation independently purchase goods and services without involving the procurement department, a practice commonly referred to as Maverick Buying. This approach disregards established purchasing policies and procedures, opening the door to financial risks and potentially fraudulent activities. Additionally, it fails to harness the specialised expertise of procurement professionals, leading to inefficiencies and disorderliness in the procurement process.

6. Time:

Manual procurement processes are inefficient and prone to errors, requiring more time and resources to complete any task. Time is consumed at every step, from creation to storage, organisation, and retrieval. Correcting mistakes and chasing paperwork also wastes significant time, ultimately slowing down the entire process as measured by Transaction Turnaround Time (TAT).

To overcome these challenges, construction businesses must prioritise the implementation of [$2](eTendering) solutions that automate the entire procurement process, from sourcing to contract management and procure-to-pay. eTendering streamlines procurement reduces errors, and saves valuable time and resources. [$2](Fortender )offers an end-to-end eTendering solution that automates all manual and repetitive tasks, ultimately saving time and increasing efficiency.