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Description of E-Procurement. Explanation.




Definition E-Procurement. Description.

A E-Procurement stands for electronic procurement and is a broad term for buying products or services using electronic means such as the Internet, other computer networks, or wireless (mobile)  transmissions. It should not be mistaken for E-Commerce (which is selling products or services using electronic media) and for E-Business, that involves both E-Commerce and E-Procurement.

It refers not just to the purchasing process itself but also to electronic negotiations and the conclusion of contracts with suppliers. Because the purchasing process is supported and simplified by the electronic handling of operative tasks, the more strategic tasks can be given a more important role in the process.

E-Procurement is normally business to business (B2B).

variants of e-procurement

  1. Web-enabled ERP (Electronic Resource Planning). Creating and approving purchasing requisitions, placing purchase orders and receiving goods and services by using an ERP software system and Internet technology.

  2. E-MRO (Maintenance, Repair and Operating). Similar to Web-enabled ERP except that the goods and services ordered are MRO supplies.

  3. E-Sourcing. Identifying suppliers for a specific category of purchasing requirements.

  4. E-Tendering. Sending requests for information and prices to suppliers and receiving their responses.

  5. E-Reverse Auction. Buying goods and services from a number of known or unknown suppliers.

  6. E-Informing. Gathering and distributing purchasing information from and to other parties.

Another word for it is E-Purchasing.

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Compare with: E-Business  |  E-Commerce  |  Reverse Auction  |  Porter Competitive Forces  |  Just-in-time  |  TDC Matrix  |  Twelve Principles of the Network Economy

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