E : Electronic Procurement : the process of obtaining supplies, especially for an government or organization E- Procurement : the business-to-business purchase and sale of supplies and services over the Internet. Also Known as: Supplier Exchange Definition: E-procurement is the business-to-business purchase and sale of supplies and services over the Internet.

1. E-Procurement
BY IMESHA PERERA

2. What is E-Procurement?
E : Electronic
Procurement : the process of obtaining supplies, especially for an government or
organization
E- Procurement : the business-to-business purchase and sale of supplies and services
over the Internet.
Also Known as: Supplier Exchange
Definition: E-procurement is the business-to-business purchase and sale of supplies
and services over the Internet.
• An important part of many B2B sites. Typically, e-procurement Web sites allow
qualified and registered users to look for buyers or sellers of goods and services.
• Depending on the approach, buyers or sellers may specify prices or invite bids.
Transactions can be initiated and completed.
• Ongoing purchases may qualify customers for volume discounts or special offers.

3. E-Procurement Vs Traditional Procurement
Traditional
Purchasing
Need
Inform purcha-
sing Department
Get
Approval
Create Purchase
Order
Receive in one
week
Request for
quotation
Get
Approval
Internet purchasing
Need
Search
approved
electronic catalog
order
Receive in 2 days
Approve
online

4. E-Tools that replace traditional
procurement
 E-sourcing supports the specification phase; it identifies suppliers that can be used
in the selection phase.
 E-tendering supports the selection phase; it facilitates the REOI and ITB/RFP
activities, usually including support for the analysis and assessment activities.
 E-reverse auctioning supports the contract phase; it enables closing a deal with a
supplier;
 E-ordering and web-based ERP is the process of creating and approving
procurement requisitions, placing purchase orders, as well as receiving goods and
services ordered, by using a software system based on the Internet.
 E-informing is not directly associated with a phase in the procurement process; it is
the process of gathering and distributing procurement information both from and
to internal and external parties using Internet technology.

5. E-Procurement Process

6. Elements of e-procurement
 request for information
 request for proposal
 request for quotation
 RFx ( Previous 3 together)

7. The e-procurement value chain
consists of:
 indent management: workflow involved in the preparation of tenders
 e-Tendering,
 e-Auctioning,
 vendor management,
 catalogue management,
 Purchase Order Integration,
 Order Status, Ship Notice,
 e-invoicing, e-payment,
 contract management

8. E-Procurement Systems
 An e-procurement system manages tenders through a web site.
 This can be accessed anywhere globally and has greatly improved
the accessibility of tenders.
 E-procurement projects are often part of the country’s larger e-
Government efforts to better serve its citizens and businesses in the
digital economy.
Examples:
 Singapore’s GeBIZ
 India’s CPPP

9. E-Procurement Tools (Software)
 E-procurement software may make it possible to
automate some buying and selling.
 Companies participating expect to be able to
 control parts inventories more effectively,
 reduce purchasing agent overhead,
 improve manufacturing cycles.
 E-procurement is expected to be integrated with the
trend toward computerized supply chain
management.

10. E-Procurement in Application
 E-Procurement is a fully capable electronic web application for purchasing goods
and services.
 E-Procurement allows shoppers to browse online catalogs, add items to a shopping
cart and submit the requisition electronically.
 Orders may also be created manually for complex purchases of capital
equipment and professional services.
 Completed requisitions are routed for review or approval via electronic workflow.
 Requisitions to select suppliers included in the hosted "e-Catalog" will automatically
generate purchase orders and transmits them to the suppliers.
 All other approved E-Procurement requisitions are routed to purchasing agents for
Procurement review and processing into purchase orders.

11. E-Procurement tools and applications
Includes:
 electronic systems to support traditional procurement
 EDI (electronic data interchange)
 ERP systems
 internet as a support or complement to traditional procurement
 electronic mail (e-mail)
 web enabled EDI
 extensible markup language (XML)
 world wide web (www)
 internet tools and platforms that replace traditional procurement

12. E-Procurement Benefits
 The primary benefit that, government agencies, service providers, and
industry seek to achieve from
 implementing electronic procurement (e.g. e-Tender) is to reduce the
liable cost of business and to
 deliver services that are more efficient for the community. e-Tendering is a
key strategy in the
 development of various electronic procurement programs and initiatives,
offering additional
 opportunities for industrial businesses, contributing to a globally
competitive economy, and helping
 secure a sustained economic growth

13. General Benefits
 Streamlines the whole tendering process.
 Provides improved and secure access to tender information.
 Brings about innovative business processes.
 Initiates greater opportunities for small and regionally based
businesses.
 Allows downloading of electronically submitted tenders in a form
suitable for evaluation
 purposes without having to manually re-enter data.
 Makes it easier for businesses to obtain tender documentation and
to submit
 Cost Effective, Fast and Efficient

14. E-Procurement Risks
 missing opportunities to implement strategies that improve procurement
management without the need for investment in e-procurement: because many
of the benefits ascribed to e-procurement may be achieved simply by improving
procurement practice.
 over-investment in e-procurement tools that do not deliver the expected
benefits: arises when there has been inadequate evaluation of the implications
of the adoption or enhancement of e-procurement tools. The risk that users will
not accept an e-procurement tool is another common risk. This risk often arises
where users have not been adequately consulted about the adoption or
enhancement of particular tools.
 On the supply side, there is a risk that suppliers will not cooperate with the use of
e-procurement tools. For example, some suppliers are sufficiently powerful to insist
on the use of paper-based systems. Others may not have access to affordable
internet based technology that would give them access to the e-procurement
tools of purchasers. In markets that are already competitive with low profit
margins, suppliers may choose not to participate in e-reverse auctions.
 Normal methods of risk assessment and management should be applied during
the development of business cases for e-procurement development or
enhancement.

15. Thank You!
The End.