Understanding E-procurement

Understanding E-procurement

Introduction

E-procurement is the electronic procurement and is also known as supplier exchange. It is the process in which sales and purchases of different products, supplies and orders are taken place in order to do business. The business is either business to consumers or business to government e-procurement is popular nowadays in every market. E-procurement is only done with the help of the software application which includes many features for supplier management. With the rapid growth of Information Technology, demand of E-procurement is also growing.

Discussion

Today, all governments are used to of e-procurement in their daily activities. This is because there are many features which are not available in papers based procurement. The benefits include that there may be a continuous ordering system that can link with the present financial management system to the government. There may be continuous reporting of every purchase and settlements with the provision of extensive management. It provides the full access to the auditors to do audits transaction with the individual purchasers. It also provides the facility in proper time period to provide guidance to buyers to the contracted suppliers. It has improved the speed in the documentation of businesses. With the help of E-procurement governments are able to get information of the suppliers within the time. It helps in improvement and re-organizing the projects, thus, giving high productivity.

Importance of E-Procurement

The government of big and developed economic countries have been implementing E-procurement in their strategies and planning since 1990s. Many countries advanced in E-procurement strategies and had developed open trading system. Let us consider the example of USA; its federal government has many enormous buyers in the department of defense. This department led their markets' and pursues systems. Americans have made out solutions for it and number of states has joined forces in order to link with single marketplace.

The Department of Treasury with continuous efforts tried to reduce the burden of paper work. It has tried to avail the opportunity of E-procurement in collection and getting supplies, purchase and orders. The main aim of the department of treasury is to establish responsibility and protocol in order to give support to the procurement of treasury organizations.

E-procurement is constantly getting attention with the rapid growth of the market fluctuations and inflations. E-procurement is now available in every market in order to make general order supplies to the huge order purchases. It helps the customers to search for the raw materials at lower costs. IT can be used for the purchase of direct and indirect materials. The expectation of E-procurement to advance in this century is not up to the mark. There are also some risks associated with it that's why department of treasury is holding to adopt it. There are security and risk control issues associated with E-procurement on large scale. Department of Treasury has to focus these issues before any purchase is made. As many benefits are associated with E-procurement, there are also certain risks and limitations.

It is important for the companies ...