The Concept of E-Government Procurement Projects

The concept of E-Government procurement (e-GP) projects is often part of the wider e-government efforts of countries to efficiently and effectively serve their citizens and businesses. At Rivale Consulting Limited, we conduct training on the usage and adoption of E-procurement to promote better governance in public procurement by increasing transparency and eliminating opportunities for fraud and corruption. The application of ICT to procurement processes has resulted in e-Procurement platforms that are ideally suited to address the e-GP objectives. Pursuing an e-Procurement system implementation is an effective way to improve public procurement management by automating all underlying processes.

Many governments worldwide have adopted end-to-end e-Procurement systems which cover the full procurement cycle. The current e-Learning course is composed of five modules, aiming to assist its audience in better understanding electronic procurement and provide them with guidance on decisions they may need to take for establishing or improving the e-GP framework of their countries. The course initially focuses on how organizations can establish a plan for an e-GP implementation, and what benefits can be expected by such an implementation project. The major target is to provide an overview of the basic and advanced features and modules of e-Procurement systems, along with concise information on how to implement each of the described e-Procurement modules. The concept also focuses on how to incorporate procurement and e-procurement into FMIS implementations in the context of PFM reform projects.

Some of the Benefits towards the Adoption of E-Procurement

Tax compliance. Globalization’s proliferation of electronic commerce has made it increasingly easier for companies to operate across borders. Tax and fiscal compliance in line with the local laws is part of e-Procurement.

Cost Saving: Various heads under which organizations can get advantages of cost reduction even up to 65% using e-Procurement like labor costs, increased in purchase volume resulting in better price from suppliers and through better negotiation with suppliers.

Process efficiency: If the organization provides tools like spend analysis, transaction analysis, market analysis and other features relating to strategic activities, proper utilization of these tools will provide a better improvement in the e-Procurement process.

Better information flow between a firm and Suppliers: With the help of existing computer systems and Internet network, allows the firm and suppliers to share information in a short time which allows both the parties to respond to each other immediately.

Reduced maverick spending: e-Procurement allows Government entities and organizations to reduce maverick spending by making use of the internet and reducing the insecurity and uncertainty while purchasing required resources. from those suppliers with whom organizations do not have any formal relationships.

Streamlined process: e-Procurement allows organizations to streamline the procurement process as the internet medium allows firms to make direct contact with their suppliers eliminating the middlemen, thus significant revenue generation for both parties.

Better inventory level: e-Procurement process will have a system check of placed orders hence there will be fewer chances of duplication or orders, wrong orders or wrong specifications of order or even a controlled stock maintenance system will allow for reducing the stock-outs.

Penned down by
Ben
Procurement Expert and Consultant