LONDON--(BUSINESS WIRE)--According to the latest procurement insights from SpendEdge, over 50% of organizations today still uses paper documentation for their procurement process, leading to time consumption and high costs – the two most important fundamentals to effective business throughput.
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In a global supply chain business, many of the organizations are in different regions of the world, thereby requiring important documents to be flown around the globe and back again for documentation. Not only does this become a significant expense, but it also opens the document signing process to additional risk, as items can be lost or damaged in the process. It can also make it difficult to handle time-sensitive business.
Digital signatures and e-signatures offer solutions to these problems by allowing documents to be signed legally without paper being mailed or participants traveling to another location. However, the use of such signatures has its disadvantages as every country have different laws around their use, and what is acceptable in one may not be passable in another. Additionally, not every organization or individual is willing to take on the risk of using them over a physical signature.
Digital signatures versus e-signatures
A digital signature is electronic data, which gets embedded into a document to verify the identity of an individual, and helps in avoiding any tampering activity after the document has been singed. This type of signature complies with national security regulations and hence is acceptable by many organizations across the world.
An e-signature, on the contrary, is essentially a digital version of a physical signature that is more user-friendly and allows a person to sign with a pen or by using their fingers. However, e-signatures are not as severely regulated as digital signatures.
Procurement market intelligence experts at SpendEdge justify that with the right research and implementation, digital signatures and e-signatures can streamline business operations and result in significant savings. Nevertheless, before introducing these signatures, many factors need to be taken into account like suppliers’ location, service providers, regional regulations, and software types. But once this framework is in place, it can help respond to many procurement challenges.
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