What is E- procurment?
E-procurement is the electronic purchasing of goods and services using internet-based platforms and digital technologies. Electronic procurement, also known as e-procurement or supplier exchange, is the process of requisitioning, ordering, and purchasing goods and services online. It is a business-to-business process. Unlike e-commerce, e-procurement utilizes a supplier’s closed system and is only available to registered users.
Significance of E- procurement
E-procurement platforms enable organizations to automate procurement processes, streamline supplier management, and optimize sourcing decisions through online catalogs, RFx tools, and e-auction capabilities. By leveraging e-procurement, organizations can reduce procurement cycle times, mitigate supply chain risks, and negotiate better terms with suppliers to achieve cost savings and operational excellence.
E-procurement In Academia
In academia, e-procurement is studied within the fields of supply chain management, procurement strategy, and information systems. Researchers investigate the benefits of e-procurement, including cost savings, process efficiency, and supply chain visibility, to understand its impact on organizational performance and competitiveness. Academic studies on e-procurement also explore its integration with enterprise resource planning (ERP) systems, supplier relationship management (SRM) tools, and emerging technologies such as blockchain and the Internet of Things (IoT) to drive innovation and digital transformation in procurement operations.
Also Read, electronic retailing.
E-tailing is the sale of goods and services through the Internet. E-tailing can include business-to-business (B2B) and business-to-consumer (B2C) sales of products and services. E-tailing requires companies to tailor their business models to capture internet sales, which can include building out distribution channels such as warehouses, internet webpages, and product shipping centres.
Explore other related terms only on Rubick.ai.
Frequently Asked Questions On E-Procurement
What do you mean by e-procurement?
Electronic procurement, also known as e-procurement or supplier exchange, is the process of requisitioning, ordering, and purchasing goods and services online. It is a business-to-business process. Unlike e-commerce, e-procurement utilizes a supplier’s closed system and is only available to registered users.
What is the role of eProcurement?
Through digital tools, e-procurement leverages technology to digitize business transactions between companies and suppliers to manage better and improve the efficiency of the procurement process.
What are the advantages of e-procurement?
It can save time and money and prevent potential errors or mishaps during the procurement process. Much has changed since the days of paper-based procurement.