E Procurement : An Objective Of Traditional Construction Industry Essay

979 WordsNov 28, 20154 Pages
Definition E-procurement can be defined as the process of proposal, ordering and payment of material by means of internet and IT software. Moreover, e procurement is the application of digital technology to perform contracting, service, transportation and payment through electronic devices. E procurement is more than the material procurement online. It enables better interaction of supplier and buyer which includes bids, question and answers. In Europe, most of the construction industry are practicing e-tendering. E tendering process finds and selects the supplier. E purchasing is also a part of e procurement. In this process system complete from finding the product, works, services and utilities to invoicing and payment by electronic means. Background Construction industry is the second largest industry in the USA with $3.4 trillion annually. E business gained ground globally in every sector. However, it is seen that it has a slower pace in construction than any other industry. Reduce the construction cost is the main objective of traditional construction industry along with considering several other factors for instance, quality or sustainability. But, now the construction industry is maturing, companies are moving towards higher goal for instance, sustainability and customer satisfaction from the basic of time, quality and cost. Internet proved the effective and efficient way of communication. Much organization has realized the importance of e-procurement and spent
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