E-Procurement Process

E-Procurement Process

The process for e-procurement involves a series of transactions, requests, and actions facilitated by an electronic platform. Here’s a detailed breakdown of these activities and the corresponding documents typically used in each step:

Purchase Order Issuance

E-Ordering

Action: Once a supplier is selected, a purchase order is issued through the e-procurement system. Documents: Purchase orders confirm the specifics of the buy, such as quantities, specifications, and agreed prices.

Supplier Relationship Management

Action: Continuous assessment and interaction with suppliers to foster better relationships and improve future transactions. Document: Performance reports, contract renewals, and continuous improvement plans.

Needs Identification

Action: The procurement process starts with identifying the needs of the organization, which involves determining the goods or services required. Document: Internal requisition forms are used to document and approve the need for procurement.

Supplier Selection

(E-Sourcing)

Action: The company searches for suitable suppliers using the e-procurement system. Documents: Requests for Information (RFI) are issued to gather general supplier capabilities. Requests for Proposal (RFP) or Requests for Quotation (RFQ) are then used for more specific information and pricing.

Order Fulfillment

Action: The supplier delivers the goods or services as per the purchase order. Document: Delivery notes or receipts are used to confirm the receipt of goods or completion of services.

Payment Processing

Action: The invoice is verified against the purchase order and delivery documentation, and payment is processed. Document: Payment receipts or remittance advices are issued once payment is completed.

Evaluation and Contract Award

Action: The submitted proposals are evaluated based on predefined criteria, such as price, quality, and service. Documents: Evaluation reports and award notifications are generated to finalize the selection of the supplier.

Tendering Process

(E-Tendering)

Action: Suppliers submit their bids through the e-procurement system. Documents: Bid submissions and tender documents, which outline the terms and conditions of the contract.

Record Keeping and Reporting

Action: All transactions and documents are stored within the e-procurement system for compliance, auditing, and reporting purposes. Document: Various reports can be generated for analysis and strategic planning, including spend analysis reports and supplier performance evaluations.

Invoice Processing

E-Invoicing

Action: After the order is fulfilled, the supplier submits an invoice through the e-procurement system. Document:Invoices detail the amounts due for the goods or services provided.