E-procurement involves conducting procurement activities electronically through the use of internet technologies and software applications. The e-procurement process typically involves identifying needs, evaluating suppliers, selecting suppliers and contracting, establishing online catalogs, requesting and approving purchase orders, budgeting, monitoring supplier performance, and analyzing spending. Estimating potential cost savings from e-procurement involves calculating the average procurement cost per item and multiplying by the number of requisitions, then subtracting the new costs under e-procurement from the original costs. Integrating supplier systems allows for collaboration between companies and suppliers on ideas, product development, production, and testing.