Benefits of E Procurement

Benefits of E-Procurement

E-procurement systems allows public sector to purchase goods and services through web-based applications such as online purchasing or through email.  Just a click of a button, government agencies can access the latest product information, availability, pricing, lead time, alternatives & suppliers information. E-procurement helps in reducing the risks of corruption on public sector as real time information is being handed between the government agency and the suppliers, less human interaction which mean less influence on the outcome of the bidding process. For public sector e-procurement systems is very beneficial in making sure the government spend its resources efficiently and with honesty.  Most countries are faced with corruption especially with developing countries.  Corruptions from public sectors most of the time resonates from purchasing products and services.

E- Procurement system also offers transparency and accountability to the public sector.  Thru a government e procurement portal, bidders and public can see all activities related to the purchase of a specific good and services.  This portal helps disclosing all related procurement information which will be difficult to be altered in comparison to doing manual transactions.

With the information available online, quick, accurate decision can easily be obtained especially on supplier’s selection.  Compare to doing traditional way of procurement wherein an organization needs to request a quote one by one to different suppliers and wait for them to submit which most of the times takes longer especially when tenders are being send thru courier.  At the same time, it also decreases the use of paper transactions. E-procurement system enables to send and review tenders in seconds.  There are also systems that automatically screens the suppliers based on the selected category that one chooses to. This makes easier to the buyers to differentiate all the offers and select the best supplier. One of the most obvious benefits is the price reduction because it entails less time allotment to the process because all information is accessible by potential suppliers online. Communication is greatly improved when done online; it’s faster and more efficient.