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INTRODUCTION
Procurement is the process of purchasing goods or services and is usually in reference to
business spending. E-Procurement refers to the digitizing and automating of some aspects of
your procurement processes. Businesses rely on the procurement process to grow their
operations and boost revenue; they also engage with digital transformations to bring their
workflows onto an efficient software or web platform, rather than through traditional manual
and paper-based management. A combination of these trends has resulted in electronic
procurement, or e-procurement, taking over tasks like routing purchase requests for approval,
generating purchase orders, and managing suppliers. This is due to the adaptation of modern
technology in the running of businesses to acquire efficiency and reduce labour to capital as
well as other costs which might be incurred by the business.

Request for quotation

Request for quote (RFQ) is a process wherein an enterprise asks a set of potential suppliers or
service providers to submit their price quotations and stand a chance to supply or provide
goods or services. Once the enterprise receives the price quotations, it can choose the
vendor/company that best matches its criteria for the goods or services. RFQs are essential
for businesses that require a consistent supply of products with set specifications and
standard, every time. Therefore, suppliers or service providers that are better organized
usually have higher chances to of creating a streamlined RFQ that offers the best match the
requirements of an enterprise, every time
Negotiation of buyer or seller
As the company have the advantage of having variety sellers or buyers it will also enjoy an
advantageous choice of selection, There are two types of negotiation which are known as
distributive and integrative negation. Consider the buyer and seller relationship again. When
both buyers and sellers have had a history of working well together, practicing effective e-
procurement strategies that build trust, and have a commitment to certain principles such as
green supply chain management; the chances of integrative negotiations increase as being a
good fit. This could lead to an improved value chain, resulting in increased profits.
Agreement between terms and contract
Procurement contracting is the process of building legally binding agreements between
contractors and suppliers in the course of managing a project. These contracts are needed for
projects to obtain needed materials, supplies and services. Using contracts and procurement
helps the buyer and the seller come to an agreement about these materials, goods and
services. This agreement includes paying invoices and meeting the terms and conditions of
the contract. A procurement contract is a legally binding document between the buyer and the
seller that not only defines the relations as it stands in terms of the business but also protects
both of their interests. They are also types of contracts which are fixed price, cost-
reimbursement or cost-control and time and materials contracts. The parameters of
procurement contracting include selecting the vendor and product, vetting the vendor,
deciding on the terms and conditions through negotiations and managing that process through
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ordering, payment and delivery of the material, supply or service. Online expression of
interest helps in identification of a good or service needed
Refers to an informal declaration that a buyer, whether strategic or financial, would like to
purchase a good or service. The expression of interest will also provide the seller with a range
of possible buying prices the buyer is willing to pay. As the buyer is willing to pay, the
communication will then take place a s he/she began emailing an organisation to procure
goods and service
Online bid submission online
Is an electronic procurement process in which the Authority receives bids from vendors for
goods, services, construction, or information services over the Internet in a real-time,
competitive bidding event. Bidders submit bids for a contract on a secure website on the
Internet or its successor, if any, which is established and maintained for that purpose."
Online release of purchase order
Online purchase release order is a purchase order that is released on the internet from an
existing purchase agreement. When you release order lines from a purchase agreement, the
commitment terms specified in the purchase agreement are applied to the purchase order . A
release against a purchase order is the actual document that authorizes you to make a delivery
and bill your customer for the cost.
Online fulfilment and post procurement
Order fulfilment is the process of receiving, packaging, shipping, and delivering a product to
the customer. The fulfilment also covers exchange and returns processing. In simple words,
fulfilment of any order happens when the interaction between the business and the customer
gets closed for the ordered product.
Smart governance
The process of utilizing modern technologies and ICT to ensure a collaborative, transparent,
participatory, communication-based and sustainable environment. Smart governance is about
the use of technology and innovation for facilitating and supporting enhanced decision
making and planning. It is associated with improving the democratic processes and
transforming the ways that public services are delivered
Automatic Work flows
Refers to designing, streamlining, executing, and automating a series of tasks that are
automatically routed between people, technology and data based on pre-defined business
rules. Digitization already saves on the strenuous paperwork your teams would otherwise be
dealing with. On top of this reduced overhead, a fully automated e-procurement platform
streamlines certain processes so that every step from order to performed quickly and on time.
From admin to finance, and IT to marketing, workflow automation can liberate all
departments from the burden of manual processes.
Cost Reduction
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They is an area which offers cost reduction benefits and a quick investment return.
Operational budgets are the focus of procurement activities for spending directly which
maintains the business costs. Utilize templates this will insure that your suppliers are asked
specific standard questions with information being included in your data base in the company
desired format. The suppliers will be required to put everything in the same way so that their
order goes through the same system. This in turn saves time for the buyers and allow them to
conduct to conduct accurate and quick analysis. By using an e-procurement system, you can
easily gather the information you can and analyse it. For example, making a top 10 vendors
can become easy when you can go through the options you have enabled your vendors to
choose from.
Lead time reduction
This concept refers to supply time, i.e. the total time it takes to deliver a product to the end
consumer, through all stages of production, from the moment it’s ordered. Awareness of this
data is vital to the success of a manufacturing project. With it, managers can better plan all
material procurement procedures, and ensure an ongoing operation flow. Lead time is a term
brought from Production Engineering. In a very simplified way, it can be understood as the
period elapsed from consumer order to delivery of a product or service. However, taking into
account this basic definition, we can explore other points and understand it more deeply.
Some executives can think that the solution to decrease lead time – and thus offer faster
deliveries – is the tactic of keeping inventories at high levels. . Orders of products that cannot
be fulfilled from inventory and must be manufactured or purchased from a supplier require a
longer lead time, which should be well planned to properly meet consumer expectation. In
short, lead time is the period of time spent by the production system, in order to transform
inputs into finished products, ready for delivery. This process involves a number of crucial
steps in a business, such as procurement management, supplier management, and supply
chain management. In a certain way, it’s an indicator that involves logistics too, as it includes
the transport of raw materials, assembly lines and storage.
Single stop shop
Building a long-term supply chain relationship offers a number of advantages. These include
cost savings, improved delivery dates, involvement with product refinement and continual
development policy based on an on-going relationship with the client. This, therefore, should
enable buyers to negotiate better purchasing arrangements. We do understand, however, that
one of the biggest concerns for many businesses is an over-dependency on one source. The
fear that this could lead to reduced competitiveness, less attractive pricing and a commercial
risk should not affect anything happen to the supplier.
Secure
Information and communication technology (ICT) security measures are helpful in protecting
confidential information from unauthorised use, modification, loss or release. The three key
elements of an effective ICT security system include: Monitoring and controlling access to
confidential information and this helps insure security of goods and services the consumer or
business strives for since
To deliver a reliable and effective technology system
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Also known as e-procurement, E-Procurement software gives organizations visibility and

control over all their procurement processes, ranging from the procure-to-pay (P2P) cycle to
supply chain management to strategic and financial planning. Many of the most popular E-
Procurement systems are what is known as Software as a Service systems. They provide a
centralized, cloud-based software environment that connects stakeholders, applications, and
physical locations for more optimal communication, collaboration, and efficiency.
While software automation used to be somewhat exclusive to larger organizations, both small
businesses and massive conglomerates use E-Procurement software today. While all
businesses are unique in some way, generally speaking E-Procurement is implemented as part
of a larger business process management initiative. General goals include cost savings,
efficiency improvements, and greater strategic and competitive decision making, supported in
part by using E-Procurement to:
Automate and streamline business processes.
Achieve improved transparency of, and access to, all spend data Improve collaboration,
analysis, and decision-making through centralized data management. Reduce waste,
inefficiencies, maverick spend, and human error .Connect all applications, including existing
enterprise resource planning (ERP), accounting, and customer resource management (CRM)
solutions, to create a cohesive software environment driven by shared efficiency. Create and
manage a global supply chain with optimal performance and strong vendor relationships built
through strategic sourcing. Redefine the role of procurement as a source of value and cost
savings created through actionable insights and process optimization.
Goals will vary with each organization, but in general, making the move to E-Procurement is
seen as a net positive, albeit one with some challenges companies may not be prepared to
tackle without proper preparation..
Data Collection

The procurement department faces many challenges in the procurement process, and data
collection is one of them. Usually, after generating the demand and approval of purchase
requests, procurement personnel have to contact various suppliers. If they must find the
suppliers from scratch, it is a tedious and time-consuming process. Information technology
helps collect the data in a centralized platform that aids in analysing to analyse the supplier
behaviour. It also enables the procur ement officers to compare prices, quality, payment
terms, and many other criterions to select an efficient supplier.

However the use of information and technology during and after procuring of goods and
services have some challenges as result of not having disadvantages. Culture shock as a
challenge to obtain both literal figurative investment in digital transformation due to lack of
information, perceived limitations of the software itself, or a corporate culture reluctant to
move beyond traditional models of procurement processing.

Situation specific integration issue usually related to a lack of planning, poor or incomplete
understanding of the goals being addressed through implementation, or confusion and
ignorance related to the capabilities and functionality of the chosen E-Procurement software.
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Research and planning needs analysis as the first step for any important update to company
workflows. Researching the available features, scalability, and total cost for the solutions
considered to address such needs is the second. Research and planning are especially
important in keeping costs low. It’s entirely possible your business may not need a soup-to-
nuts E-Procurement solution at this time; small businesses may find a purchase order tool or
e-Procurement software will adequately meet their needs now and for the foreseeable future.
Understanding your actual needs will keep you from spending too much now, while leaving
room for growth down the road. Knowing what you need, and how much you’re willing and
able to pay for it, will keep the cost, chaos, and crankiness to a minimum.

Education training before implementing any solution, it’s critical to get buy-in from all
stakeholders, from the C-Suite down through management to office staff and vendors.
Choosing a service provider like PLANERGY, which includes in-depth education and
training as part of its E-Procurement software (including training, information sessions, and
refreshers before, during, and after implementation), will help you dodge common bullets
such as Poor performance and compliance due to user frustration. Supplier integration
challenges (e.g., catalog integration and updates). Difficulties integrating direct and indirect
spend into a single, cohesive system. Lack of strategic value due to managerial struggles in
using data analytics, process optimization, and other data dashboards.

CONCLUSION

Online marketplaces, auctions and internet based tendering have not revolutionised
procurement. As in other fields of application of e-business, however, one should not assume
that nothing is happening in the procurement departments in the ITC field. Organisations
questioned has invested more than a quarter of a million in the further development of ITC
for procurement. Procurement goals remain stable Goals in procurement have largely
remained stable in the last few years.