E-Procurement Systems in the Global Market
Although the adoption of e-procurement systems over the past 20 years has shown significant success, it also presents several challenges. There is no doubt that networked systems are transforming procurement practices worldwide. At the same time, the increasing number of e-procurement service providers and diverse B2B services has made the market grow rapidly and become more complex.
Definition of E-Procurement Systems
E-procurement is a specialized term that encompasses various aspects, including services such as database hosting, catalog management, bid and auction management on behalf of clients, and full procurement services provided by external vendors. One example is outsourcing e-procurement services to eliminate the tedious tasks of preparing and submitting large volumes of documents required for participating in major tenders manually.
Trends in E-Procurement in the Private Sector
E-procurement service providers show clear growth trends. Some companies offer comprehensive procurement networks to support their clients’ global procurement transactions, such as sourcing suppliers that meet the specific requirements of buyers or maintaining a high-quality, diverse supplier database across multiple categories of goods and services for clients’ convenience.
Trends in E-Procurement in the Public Sector
Governments in countries with stable and developed economies are increasingly adopting e-procurement systems due to their structured, auditable, and transparent transaction processes. However, in emerging markets, governments often do not fully recognize the benefits of e-procurement systems. According to World Bank research, many governments are reluctant to adopt fully transparent and auditable systems.
The World Bank recommends that before governments can fully leverage the potential of e-procurement, they need to implement several foundational steps, including expanding ICT services, ensuring a secure online environment, developing standards and procedures, and, most importantly, providing procurement training.
Trends in E-Procurement in Non-Governmental Organizations (NGOs)
Development and emergency relief agencies can greatly benefit from e-procurement systems, potentially saving up to 10% in costs, with some evidence showing time savings in operations as well. E-procurement allows funded buyers to quickly and easily compare prices and verify requirements and delivery dates from suppliers worldwide. This is where e-procurement can play a truly impactful role.
