Automating Procurement (E-Procurement) and Its Benefits during the COVID-19 Pandemic

Abstract

Automating the procurement function brings a host of benefits to any organization. Cost savings are increased while decreasing off-contract and non-catalog spend. More activity can be brought under management—including tail spend—and the procurement team has much greater visibility over all its functions, allowing it to better mitigate risk and maximize efficiency and resources. Therefore, implementing an e-procurement system benefits all levels of an organization. E-procurement systems offer improved spend visibility and control and help finance officers match purchases with purchase orders, receipts and job tickets. An e-procurement system also manages tenders through a web site. In the case of government procurement, the benefits might be efficiency, transparency, equity, fairness and encouragement of local business. Because e-procurement increases competition, lowers transaction costs, and has potential to minimize time and errors in the bidding process, efficiency is achieved. Because of easier accessibility and openness of the internet, more people can attain earlier informations, which increases transparency. Neutrality to location and time ensures equity and fairness.