E-procurement refers to the online process of buying and selling supplies and services between businesses. It encompasses various stages such as spend analysis, supplier assessment, sourcing, contract management, and purchasing, with tools designed to improve efficiency and reduce costs. Key challenges include gaining buy-in from stakeholders, compliance, and effectively managing the e-procurement tools and processes.

1. E-PROCUREMENT

2. WHAT IS E-PROCUREMENT?
THE BUSINESS-TO-BUSINESS PURCHASE AND SALE OF
SUPPLIES AND SERVICES OVER THE INTERNET.

3. E-PROCUREMENT PROCESS
3
1. Spend Analysis
(Opportunity Identification)
3. Supplier Identification
4. Sourcing
(eTendering / eAuctions)
5. Contract Management
6. Procurement
7. Order Fulfillment
8. Invoicing,
Reconciliation &
Payment
2. Supplier Assessment

4. E-PROCUREMENT PROCESS

5. ELEMENTS OF E-PROCUREMENT
• REQUEST FOR INFORMATION
• REQUEST FOR PROPOSAL
• REQUEST FOR QUOTATION
• RFX ( PREVIOUS 3 TOGETHER)

6. PROCUREMENT VISION – REDUCE TOTAL COST
6
39
43
8
28
3
3
0
10
20
30
40
50
60
70
80
90
As~Is To~Be Vision
Internal Processing Cost External Processing Cost
 Minimise
total cost
from $82 to
$6
 Reduce
cycle times
 Improve
Accuracy

7. E-PROCUREMENT CHALLENGES
7
Gaining initial
interest
Making the
case
Commit
resources
Deliver the
benefits
Leadership and
ownership of
the project
Management
and user buy-in
Selling the
benefits
Management
and user buy-in
Selling the
benefits
Organisation design
Compliance with
corporate contracts
and processes

8. E-PROCUREMENT TOOLS
• SPEND ANALYSIS – DATA ON SPEND PATTERNS
• E-SOURCING - IT IDENTIFIES SUPPLIERS THAT CAN BE USED IN THE SELECTION PHASE.
• E-TENDERING – RECEIPT OF TENDERS & EVALUATION
• E-REVERSE AUCTIONS – COMMODITY FOCUSED, COMPETITIVE MARKET
• E-MARKETPLACE – CONTRACTS, COLLABORATION, MANAGEMENT INFORMATION
• E-INVOICING – INVOICE GENERATION, AUTHORISATION & PAYMENT
8

9. E-Sourcing
Identifying new suppliers for a specific category of purchasing
requirements using Internet technology.

10. Reverse Auctioning
Using Internet technology to buy goods and services from a number
of known or unknown suppliers.

11. E-Tendering
Sending requests for information and prices to suppliers and
receiving the responses of suppliers using Internet technology.
Tender
Preparation
Tender
Publishing
Bidder
Response
Bid
Evaluation
Contract
Award
Indent
To Tender
Request
e-Tendering Solution
An e-Tendering solution primarily facilitates the ‘Tendering Process’
and may cover from Indenting of Requirements to the placing of
contract/PO

12. E-Marketplace
 Buying communities can perform the following:
Access preferred
suppliers' products
and services
Add to shopping
carts
Create requisition
Seek approval
Receive purchase
orders
Process electronic
invoices
Integrate with
suppliers' supply
chains and buyers'
financial systems.

13. THANK YOU!