This paper deals about the topic related to e-procurement and the advantages, disadvantages related in the tendering field. This concept is developed by the IT wing and the factors based on the e-procurement and deals with the capability of this concept, transparency of this concept, implementing of this concept and all other factors are considered and explained in detail. This abstract includes the case studies and dealing options regarding the e-procurement. The case study is related to various fields and the governments and multi-national companies case studies are explained in brief.
E-procurement is defined as the purchase and sale of goods or work done by electronic in the internet. this is an instrument used for maintaining the capability and to make clear transactions and help the clients to make savings.
E-procurement was introduced by and used by IBM company in 2000. they designed this software to answer IBM’s tough procurement process for their laptop assembling plant named Guadalajara, Mexico. this system was created by an engineer named ‘Daniel Delfin’ and ‘Alberto Wario’ is an IT programmer. They obtained huge results in introducing this system later on they increased and sold licenses to their clients for their business purposes.
what is procurement??
Procuring is defined as the thing or project obtaining i.e, procure=acquire=obtain. The act of obtaining or buying goods and services. The process includes preparation and processing of a demand as well as the end receipt and approval of payment. It often involves(1) purchase planning,(2) standards determination, (3) specifications development, (4) supplier research and selection, (5) value analysis, (6) financing, (7) price negotiation, (8) making the purchase, (9) supply contract administration, (10) inventory control and stores, and (11) disposals and other related functions. The process of procurement is often part of a company’s strategy because the ability to purchase certain materials will determine if operations will continue. A business will not be able to survive if it’s price of procurement is more than the profit it makes on selling the actual product. Diagrammatic representation of procurement process:
Awarding a contract
Announce the procumentManaging the contract
Awarding a contract
Announce the procumentManaging the contract
Difference between procurement and e-procurement
Both the procurement and e-procurement have same process but the platform occurring area is different. Here the platform is indicated as the e-procurement is done electronically with in the computer with the help of internet connection which doesn’t consists of paperwork regarding the files. But in the procurement the process is different and there includes a lot of paperwork has to be done before the tender is bid into tender box.
There are two types of e-procurement. They are:
As there are two types but the process of dealing with them is similar just to differ the pattern or small variations in bidding is different but the methodology used is same.
Impacts of e-procurement
There are various impacts in this system. They are:
reducing the effort of human resources
communicative and consecutive
Reducing the human efforts involves the following:
Inviting the suppliers for the tender process by sending them documentation.
Terms and conditions of the tender is explained.
Utilising the e-auctions.
Communicative and consecutive:
Tender documents will be published from several places.
As this process occurs electronically it will be perfect and precise so that they can carry more time for presenting the topic.
The documents placed in the file can be easily accessed for information guidance.
Ease of access to any paper i.e, document where it gives a clean and clear presentation of work.
Notifications occurring or upcoming notices can be placed in the portal.
It gives more comfort and faster for comparing and the evaluation can be done in each and every phase of the project.
Dealing the files is easy whether they are arranged in the order or not and it deals as per the tendering procedure.
There will a lot of transparency between their organisation employees so that they can access anytime to the tender.
Interchanging of documents can be done between the employees and clients.
There will be lot of impact in processing the sub contracts when the contract is a huge contract.
Working from anywhere will be the advantage.
The managers of various wings can manage and contact easily by opening the portal.
All the data is provided regarding the project.
All the data about the budget spent on the project.
All the prices of materials are provided as per the market rate.
The schedule and the time taken to finish the project is also placed in the portal.
The responsibilities and contribution to the project is identified and specified them uniquely so that they get clarity on their work and it completes fast.
a probable example to determine the impacts of new software applied to public purchasing process has been missed and the advantages and dis-advantages of purchasing the goods by online is as not sure as done out by the researcher.
Stages proceeding in e-procurement:
various stages are present today by the stakeholders and their importance is to identify the loops and they are stated below.
At political stage: the clean and clear explanation of management goals and reducing the cost of public expenditure and optimising the cost.
At management stage: in this stage the procurement ways are standardised to make the transactions better and all the work is keenly observed by the employees of the organisation may be single employer or by the group so that they can take the proper measurements to get the tender carefully
At operational stage: in this stage to overlap the productivity and obtain the results they are affected because we can observe the various stages and communication between the client and company.
Capability of implementing the e-procurement.
The capability of implementing this process involves:
control over project
Implementing the plan
Ability: ability is defined as the usage of the requirements during the tender time and e-procurement impacts this factor by giving required permission to the employees to get the same results as occurred by the normal procurement that is the work done in paper in the time of less span and observation between the various stages of the project.
Therefore, the time reduced of full-time equivalents (FTE) appointed for proposing the path is the main person to observe ability.
Ability can be calculated by the following parameters:
FTE saved by manager.
FTE saved by an employee.
FTE saved by human resources in the project.
Bids evaluation phase elapsed time.
Effectiveness: To calculate the effectiveness of e-procurement the process is to see the difference between the work completed and the work to be done I.e, the work allotted. the various goals had been set up by the organisation and in this process there are many things and the main thing is purchasing the goods and these purchases have to be done with in the budget allotted to that particular department and before buying the goods the respected employee should verify the prices of goods all over the market and should be bought where the cheapest occurs and also should be quality assured. Later on the management of conflicts and should be answerable to all the suppliers is also an important aspect to be maintenance.
The effectiveness of the work is calculated by:
The average discount obtained in reserve price.
The lesser number of appeals done by the supplier in a year.
The average number of doubts clarified to the suppliers as per procedure.
Dissolving: in this point of view there are two consequences to be faced at first the discount obtained from retailers is the main point considered and in another point of view there is lot of work to be done by the system i.e, this work consists of paper work preparing files and documents regarding the procurement work and assigning the employees based on their respective fields. Therefore, dissolving the materials deal with environmental value and cost of the project.
The dissolving of work consists of:
The average pages assembled/acquired per year.
The whole sum of pages assembled/acquired per year.
Weight of papers acquired per year.
Average number of trees acquired per year.
Total number of trees acquired per year.
Clarity it is also known as transparency. clarity is maintained in e-procurement system and the transparency is maintained based upon the organisation principles because not all the companies maintain whole transparency and the information regarding the project should be neatly maintained between the client and organisation and within the organisation not all the employees will go through all the files. the employees who are assigned into the particular project can deal with the project. a set up or a commitment has to be done on mentioning the data of project in the electronic device because the data should be identified or can be read by all the persons here persons involves suppliers, dealers, clients, employers and organisation heads because it gives a clean range of offers.
clarity of e-procurement can be assessed by:
The sum of percentage of tender procedure whose documentation is obtained online.
The outcome of the tender procedure is produced online.
The percentage should be in technical format through the tendering procedure.