Electronic Procurement also known as E-procurement is an electronic platform for business-to-business or business-to-government purchase and sale of supplies, work, and services through the Internet as well as other information and networking systems.. E-procurement has gradually changed the business world. It has made it possible for small businesses to remain competitive and to be able to access business opportunities where ever that might be. Resources
E-procurement is done with a software application that includes features for supplier management and complex auctions. The e-procurement value chain consists of indent management, eTendering, eAuctioning, vendor management, catalogue management, Purchase Order Integration, Order Status, Ship Notice, eInvoicing, ePayment, and contract management.
In the US, numerous municipalities, states and federal agencies has moved towards E-procurement making doing business with the government accessible to many businesses which might not be possible without electronic procurement. This trend is gradually making its way internationally and will encourage expansion of business opportunities for small businesses to compete internationally.
E-procurement advantages are becoming more evident day by day as the wider understanding of its many uses become more apparent. The main reason companies as well as government agencies have embraced electronic procurement is its ability to increase productivity, provide visibility/level playing ground into the day-to-day transactions, reduce costs and make it easier for users to get the supplies that they need. Resources
It has not been an easy road for e-procurement as implementation has its challenges and it has taken time for business managers and procurement departments to fully accept it. But its advantages fully out ways its shortcomings.
Written By: Anthony Obiako, Reliable Investments LLC
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