e procurement

Yash Maurya IX-A

What is E-Procurement?

E-procurement is the business-to-business or business-to-consumer or business-to-government purchase and sale of supplies, work, and services through the Internet as well as other information and networking systems, such as electronic data interchange and enterprise resource planning. E-procurement essentially replaces its offline version, called tendering.

History of E-ProcurementE-procurement increased in the second

half of 1999, when online auctions and product catalogs became commonplace on the Internet and continued to expand. E-procurement is still a growing trend, which started with General Electric and Wal-Mart creating buying and selling hubs over the Internet. Internet commerce expanded, as companies like Amazon.com brought together diverse groups of buyers and sellers. Vertical markets (for example, insurance, heavy manufacturing, banking and real estate) have also joined e-procurement consortiums.

Advantages of E-Procurement

E-procurement advantages are becoming more evident as the wider understanding of its many uses become apparent. The advantages of e-procurement are slowly being understood:

Reducing costs Visibility of spend Productivity Controls Using technology

Disadvantages of E-Procurement

Price of Technology Implementation Problems Loss of direct relationship between the

Buyer and the Seller Security issues Accessibility Bandwidth problems