The expected explosive growth of business-to-business electronic commerce (e-commerce) hinges on business procurement cards to achieve fully automated business processes, including payments.
ECnet, a subsidiary of the PQ Africa`s lectronic commerce division, is driving a procurement automation evolution, that will see a drastic improvement in both service and payment administration of transactions.
According to Paddy Gray, marketing manager of Internet commerce service provider ECnet, procurement card utilisation will only realise its full potential in a fully automated e-commerce environment - a high-tech marketplace of which the foundations have already been cast. "Virtual procurement cards will become a standard method of payment for business to business purchase transactions on the Internet within the short to medium term," says Gray.
This prediction is based on the inevitable merger of the technologies that allow procurement cards on the one hand and enable e-commerce on the other hand. While procurement cards already ease the load on payment administrators, their ultimate role will be as the integrated online payment leg in an e-commerce business model. Being able to reconcile the amount spent with line item detail of goods purchased, per buyer, now becomes possible.
According to Gray, SA companies typically spend between R150 and R250 to process an order. For every 100 invoices processed in the FMCG industry, an average 45 credit notes typically result. "Moving to an online channel, with secure electronic catalogues and order management facilities, not only reduces human error, but also streamlines processes, immediately reducing costs."
"Current estimates are that Internet-based e-commerce will grow to approximately R47 billion by the year 2002. Paper-based payment processes will simply not be efficient enough for this environment and enhanced procurement card systems are certain to fill this gap," Gray predicts.
She says the procurement card can be represented as a virtual card, where only the Bank receives the card number in each transaction. "ECnet has all the technology in place to integrate procurement cards to its secure online purchasing services today."
In this model buyers will typically use a password to gain access to the restricted website of a regular supplier. The buyer`s details are automatically supplied on the electronic order form. The system also automatically recognises the buyers purchase limit, as well as discount levels negotiated between the parties. The buyer simply has to indicate his or her purchases to complete the order form.
In the second stage of the transaction, ECnet authorises the cardholder funds with the bank and then notifies the supplier of the order. As soon as the seller delivers the goods, ECnet automatically instructs the bank to facilitate payment, directly from the purchase card account to the seller`s account.
The banks ensure that money will typically be in the seller`s account within 48 - 72 hours, while the buyer is only required to settle the purchase card account at the end of the month.
"Cash-flow, service levels and payment administration are dramatically improved, while at the same time reducing the burden on staff. By automating the total back-office process in an online transaction, ECnet simply allows companies to do better business - and to do business better," says Gray.
@EditorNote = ECnet
ECnet, the first commerce service provider (CSP) in South Africa, is the only CSP to be directly connected onto the South African banking network, with links to four of South Africa`s major banks.
ECnet is one of the four companies within PQ Africa`s Electronic Commerce Division. The division incorporates the capabilities of Q Data Internet, QEDI, ECnet and SACA.
ECnet enables companies or merchants to easily conduct business over the Internet, without the associated complexity. ECnet provides an outsourced service which offers merchants secure Internet-based transaction processing as well as providing comprehensive customer service facilities to merchants and buyers throughout the World Wide Web.
ECnet provides a complete transaction management service including: complete order management, on-line customer service, security, record-keeping, flexible purchasing and payment models, shipping calculation, as well as secure transaction processing.
A vast range of South African merchants have been enabled by ECnet to conduct electronic commerce over the Internet using ECnet`s back-office transaction management processing services. The list of merchants can be found in ECnet`s shopping directory, which can be found on ECnet`s Web site: www.ecnet.co.za.
Being part of PQ Africa, ECnet is well equipped to enhance the clients` electronic business operations providing a fully-fledged electronic commerce solution.
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ECnet
ECnet, the first commerce service provider (CSP) in South Africa, is the only CSP to be directly connected onto the South African banking network, with links to four of South Africa`s major banks.
ECnet is one of the four companies within PQ Africa`s Electronic Commerce Division. The division incorporates the capabilities of Q Data Internet, QEDI, ECnet and SACA.
ECnet enables companies or merchants to easily conduct business over the Internet, without the associated complexity. ECnet provides an outsourced service which offers merchants secure Internet-based transaction processing as well as providing comprehensive customer service facilities to merchants and buyers throughout the World Wide Web.
ECnet provides a complete transaction management service including: complete order management, on-line customer service, security, record-keeping, flexible purchasing and payment models, shipping calculation, as well as secure transaction processing.
A vast range of South African merchants have been enabled by ECnet to conduct electronic commerce over the Internet using ECnet`s back-office transaction management processing services. The list of merchants can be found in ECnet`s shopping directory, which can be found on ECnet`s Web site: www.ecnet.co.za.
Being part of PQ Africa, ECnet is well equipped to enhance the clients` electronic business operations providing a fully-fledged electronic commerce solution.
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