e-Procurement involves the online conduct of business-to-business procurement processes using web-based applications. The significance of e-Procurement is that it enables buyers to locate potential suppliers, review product choices, select products and make purchasing transactions directly over the Internet. Typical e-Procurement applications include web-based ERP solutions that automate transactional procurement processes. e-Sourcing can facilitate the location of potential supply sources, e-Tendering can facilitate simplified quotation and tendering processes, e-Auctions may allow reverse auctions and e-Marketplaces bring together multiple sellers in a single environment. The significance of e-Procurement is not simply the automation of workflows such as requisitioning, creating purchase orders, and receiving and paying for goods. e-Procurement solutions change the sourcing process by facilitating the value propositions of multiple suppliers to be accessed in one place and at one time to create a ‘one-stop shop’ for all categories, and reduce the friction involved in traditional commerce. See also e-Marketplace.
Masterclass – Operational Excellence for Procurement training is available at Academy of Procurement.« Back to Glossary Index