Scribd
Upload
18 views4 pages

3rd Reporter

E-procurement is the process of purchasing supplies and services online through a supplier's private system available to registered users. It streamlines interactions like bids and purchase orders between buyers and suppliers. E-procurement software facilitates and automates the process, starting in the 1980s with EDI and evolving to include supplier evaluation, contracts, electronic orders and payments today. Key components of e-procurement systems automate e-sourcing, e-tendering, e-auctioning, e-ordering, and payments through a unified online portal.

Uploaded by

Regine Reyes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
18 views4 pages

3rd Reporter

E-procurement is the process of purchasing supplies and services online through a supplier's private system available to registered users. It streamlines interactions like bids and purchase orders between buyers and suppliers. E-procurement software facilitates and automates the process, starting in the 1980s with EDI and evolving to include supplier evaluation, contracts, electronic orders and payments today. Key components of e-procurement systems automate e-sourcing, e-tendering, e-auctioning, e-ordering, and payments through a unified online portal.

Uploaded by

Regine Reyes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

What is E-Procurement?

E-procurement is the process of buying and selling supplies and services over
the Internet. It differs from e-commerce in that it makes use of a supplier’s
closed system typically available only to registered users.

When implemented properly, e-procurement opens the lines of


communication between a company and a supplier by creating a direct link
and facilitating interactions such as bids, purchase orders and emails.

Electronic procurement, also known as e-procurement or supplier exchange,


is the process of requisitioning, ordering and purchasing goods and services
online. It is a business-to-business process.

E-procurement started in the 1980s, following the development of Electronic


Data Interchange (EDI). A decade later, improvements in EDI allowed
organizations to develop online catalogs for vendors. Today, e-procurement
involves everything from supplier evaluation and selection to contract
management, electronic orders and payments.

E-procurement uses a web interface or some other kind of networked


system that connects suppliers and customers. In the enterprise, a chief
procurement officer or procurement department usually sets the policies
governing the e-procurement of materials for the organization.

How does e-procurement work?


E-procurement eliminates the need to manually carry out laborious,
procurement-related tasks such as eAuctions and eTenders, exchanging supplier
contracts and filling out supplier onboarding questionnaires.

key components in e-procurement include the following:

 e-sourcing: requirements definition and pre-qualifying potential


suppliers;

 e-tendering: request for information, proposals and quotations;


 e-auctioning: evaluating suppliers, negotiation and contract
management;

 e-ordering and payment: creating requisitions and purchase orders, and


receiving ordered items;
E-procurement software
E-procurement software facilitates the e-procurement process. It also enables
procurement staff to automate various activities, functions and procedures,
including policies, contracts and vendor relationships.

Although available functions and features vary among vendors, the software's
biggest advantage is that it streamlines the procurement process and
eliminates manual or paper-based activities.

Many e-procurement systems provide tools that allow procurement managers to


customize the procurement experience. They can also:

 determine which items will be available to which users;

 control who can view the budget information;

 control who can approve purchase requisitions; and

 control who can view and pay invoices.

Many e-procurement platforms can be accessed over mobile devices


like smartphones and tablets.
Introduction to eSourcing
eSourcing is the process of procuring bids from current and potential suppliers via a unified
online portal.
Traditionally, a procurement manager’s most crucial or essential skill was the competence to
negotiate prices and the terms of a contract with the supplier.

However, the economic disruption from the pandemic has forced many in the procurement sector
to adopt technology in order to carry out their business operations more efficiently.

What is eSourcing?
Electronic sourcing (eSourcing) can be defined as the process of obtaining bids from different
suppliers via a single online portal. It is a web-based platform that provides smooth and clear
communication between you and your suppliers.

Additionally, eSourcing involves automating the following core procurement processes:

1. Request for Information (RFI)


In procurement, RFI’s are used to collect and evaluate a broad base of suppliers at a high level.
Typically, they focus on suppliers’ capabilities rather than the product, service, or pricing details.
An RFI is a valuable tool when looking for new sources of supply.

2. Request for Proposal (RFP)


All suppliers that meet the qualification standards in the RFI can be invited to the RFP. During
this process, buyers specify what they are looking to purchase and ask suppliers to provide
fulfillment details. Generally, RFPs seek one of two things:

 A Buyer-Defined Solution, i.e., the organization needs a particular product with certain
specifications
 A Buyer-Defined Outcome, i.e., the organization needs to solve a business problem, and the
supplier needs to recommend a solution.

Typically, RFPs ask for specific responses concerning the company, product, service offering,
and pricing. RFPs are valuable tools when you know what you want and need suppliers to
supply information on how they will provide what you need.

3. Request for Quotation (RFQ)


Generally, an RFQ is a final step in the sourcing process. Procurement teams negotiate prices
and final terms of the agreement. Sometimes, an RFQ can solicit bids on items other than prices,
such as service requirements, payment terms, or quantity discounts. An RFQ is a tool to use
when you are comfortable with all suppliers bidding but want to get the best deal.

You might also like