E-procurement involves digitally transforming procurement processes to maximize efficiency through automation. It facilitates online requisitioning, ordering, and purchasing of goods and services. The key stages of e-procurement include e-informing, e-sourcing, e-tendering, e-auctioning, procurement automation, supplier risk management, e-ordering, e-invoicing, and contract management. E-procurement software enables these stages through a centralized platform and provides benefits like time savings, increased efficiency, improved communication and reduced risks. Important features of e-procurement software include customizable workflows, supplier management, automation, catalog creation, integration and spend management capabilities.

1. E-procurement
E-business
Instructor: Asst. Prof Gulabuddin Noori
Prepared by: Pazir Ahmad “Baryal” group
E-businesspresention
BY BARYAL GROUP 2023712

2. ‫بسم‬
‫هللا‬
‫الرحمن‬
‫الرحیم‬

4. What is e-Procurement?
• How do you build strong, mutually beneficial relationships with your vendors without
spending much time managing them?
• Procurement is the answer.
• In the future most procurement processes must be transformed digitally to maximize
efficiency, automate manual tasks, and create better customer and vendor
experiences.
• As more and more business is conducted online, the future of effective procurement is
digital – known as digital procurement or e-procurement.
• Finally, e-procurement, or digital procurement, is a transactional business process
involving requisitioning, ordering, and purchasing goods and services online.
• E-procurement eliminates paperwork, streamlines the procure-to-pay process, and
facilitates interactions between preferred suppliers, vendors, and customers.

5. E-procurement Process
1. E-Informing
 The e-procurement cycle starts with e-informing – it refers to the process of researching and
transferring purchasing information within departments by means of online channels. During
this stage, the organization collects information about the need, timelines, vendor
requirements, etc. It’s passed within the organization or communicated to one’s supply chain
partners to achieve higher efficiency of the supply chain.
• 2. E-Sourcing
 Next, the organization researches the best-suited vendors based on the outlined requirements,
by using online technologies. The purpose of e-sourcing is to collect relevant information
about potential vendors and choose the one that offers the most tangible benefits in the long-
term perspective.
 Digital procurement facilitates anticipation of demand by utilizing artificial intelligence and
automated secure payments. Payments get triggered using real-time delivery signals.
Additionally, the exchange of goods also becomes easy due to decentralized ledgers.

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3. E-Tendering
• While gathering information about vendors, the organization also needs to electronically request
and receive quotations from them. This part of the process is called e-tendering.
4. E-Auctioning
• E-auctioning is a dynamic negotiation carried out online between the company and pre-qualified
suppliers. The parties negotiate pricing and contract terms in a real-time auction.
The process is usually conducted through a web-based system that allows buyers and vendors to
bid online.
5. Procurement Automation
• Digital procurement aims at automating routine tasks in a procurement process to increase
bottom-line efficiency. Tasks like processing purchase orders, requisitioning goods and services,
validating material reception, payments, and invoice management require minimal human
intervention.

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6. Supplier Risk Management (SRM)
• Digital procurement facilitates better collaboration with the supplier and real-time
monitoring of supplier risk. Technologies like augmented reality and crowdsourcing aid
virtual supplier visits and audits, respectively.
• These preemptive risk mitigation strategies take care of damage control and allow
procurement professionals to focus more on optimizing the process.
7. E-Ordering
• After agreeing on the pricing and contract terms, the procuring organization orders
products or services from the vendor and monitors delivery. E-ordering involves using
an electronic ordering system that automates the purchasing process.

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8. E-Invoicing
• E-invoicing is a digitized invoicing process where the bill is electronically presented to
the procuring organization. With e-Invoicing, the company can receive, process, and pay
invoices touchless. It’s best to create a standardized e-Invoicing procedure that provides
vendors with clear guidelines and invoice templates to enable frictionless automatic
invoice processing.
9. Contract Management
• To maintain strong vendor relationships, the buyer manages and optimizes the contract
management lifecycle through a contract management system.
• A contract management software serves as a secure, centralized repository for
creating, managing, and storing contracts, and completely automates the contract
process.

9. E-procurement Benefit
• When done correctly, e-Procurement can bring in many advantages to businesses,
including saving time and money, improving communication and collaboration, and
reducing stress levels.
Time Savings
Increased Efficiency
Improved Communication and Collaboration
Reduced Risk
Increased Compliance with Legal Requirements

10. What Is E-Procurement Software?
• E-procurement software is a cloud-based solution providing tools that facilitate each stage
of the e-procurement process. It enables digital sourcing, purchasing, spend management,
risk mitigation, and other critical aspects of vendor management through a single
interface.
Types of E-Procurement Software
• The e-procurement process wouldn’t be possible without digital tools and software
applications.
• These are cloud-based apps that carry out your organization’s e-procurement
processes. They may cover some or all of the above-mentioned e-procurement stages,
namely online informing, sourcing, tendering, auctioning, ordering, invoicing, and
contract management.

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1. Procurement software
• These are cloud-based apps that carry out your organization’s e-procurement processes.
They may cover some or all of the above-mentioned e-procurement stages, namely online
informing, sourcing, tendering, auctioning, ordering, invoicing, and contract management.
2. ERP systems
• Enterprise resource planning (ERP) systems. ERP systems streamline the main business
processes, such as procurement, production, finance management, reporting, etc.
3. Electronic data interchange (EDI) software
• EDI tools enable electronic information exchange between two separate organizations.
EDIs are mostly used to pass data about orders, confirmations, and invoicing. Contrary to
online tools, electronic data interchange tools operate on an intranet, a closed network.

12. Key Features of E-Procurement Software
The market is full of e-procurement solutions – all of them offer different functionalities and price
tags. Which features should you look for in e-procurement software?
1. An all-in-one platform
• When building a complex ecosystem from multiple tools, you risk losing critical information,
which leads to miscommunication and contract mismanagement. If you aren’t an e-procurement
pro yet, it’s best to find an easy-to-use tool facilitating the entire process.
2. Customizable workflows
• When partnering with a range of vendors across dozens of niches, you can’t create a single
standardized workflow for all of them. Being able to access templated workflows and customize
them is a critical feature for every company regardless of its business model and size.

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3. Supplier management
• Look for supplier management features such as hassle-free vendor onboarding and vendor
communications. Setting up a supplier portal or just inviting them to collaborate on the
project inside your system interface will empower your vendors and create a
communication channel keeping both parties updated on the state of things. These
features will support real-time collaboration and minimize conflict situations.
4. Automation functionality
• You should be able to set up automated workflows with your e-procurement software.
Automation will not only free up valuable time but also reduce the chance of human error
and accelerate procurement cycle times.

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5. Catalog creation
• Supplier catalogs allow users to organize the vendors’ products and services. They typically
include basic product details like product names, descriptions, price, and other related
details.
6. Integration
• Even if you choose an all-in-one e-procurement system, chances are you’ll need to
integrate it with one of your business operations tools. Make sure your software can be
easily connected to third-party software either with built-in integrations, through Zapier, or
via the API.
7. Spend management
• Your e-procurement software must offer features like ongoing spend monitoring, rule-
based budget controls, real-time spend insights, etc. It should be easy to control and
manage your costs through a centralized platform.

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8. 3-way matching
• 3-way matching is the act of matching the information in three steps of the e-
procurement process: purchase orders, order receipts, and invoices. It identifies
information mismatch and eliminates unexpected surcharges. A sophisticated e-
procurement system automates the 3-way matching process with no human intervention
needed.
9. Robotic process automation
• RPA eliminates the requirement of full-time equivalent (FTE) resources by identifying
patterns and performing rule-based tasks. RPA also finds usage in the vendor selection
process and demand planning. Furthermore, it can identify the intent of mails and suggest
auto-replies.

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10. AI and machine learning
• RPA eliminates the requirement of full-time equivalent (FTE) resources by identifying patterns and
performing rule-based tasks. RPA also finds usage in the vendor selection process and demand planning.
Furthermore, it can identify the intent of mails and suggest auto-replies.
11. Blockchain
• It leverages an encrypted data structure to create digital transaction ledgers. These ledgers can verify P2P
transactions and trigger automated payments. Furthermore, blockchain simplifies record-keeping for an
organization and allows easy sharing of information within a network.
12. Advanced analytics
• Analytics provides actionable insights to tackle situations like cost/price fluctuations, demand imbalance,
supplier/financial risk, and allows procurement officers to make informed decisions.
13. Content extraction tools
• Tools like Optical Character Recognition (OCR), along with learning algorithms, facilitate deciphering and
content extraction from documents like invoices, contracts, bills of materials. It also eases the process of
audit, document comparisons, and exception management in procurement.