E Procurement

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1. E procurement – A bird's eye view

1.1 Introduction

E-procurement is the business-to-business purchase and sale of supplies and services over the Internet. An important part of many B2B sites, e-procurement is also sometimes referred to by other terms, such as supplier exchange. Typically, e-procurement Web sites allow qualified and registered users to look for buyers or sellers of goods and services. Depending on the approach, buyers or sellers may specify prices or invite bids. Transactions can be initiated and completed. Ongoing purchases may qualify customers for volume discounts or special offers.
E-procurement software may make it possible to automate some buying and selling. Companies participating expect to be able to control
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These standard contracts contain all the possible contractual terms collated from multiple organizations that have made these contracts in the past.

Make Request for Purchase (RFP)

Based on employee requirements or forecasts given by sales, a requisition is put for purchase. Marketplaces offer standard RFP templates compiled from the best and most comprehensives in the industry.
The catalog manager ensures that information related to suppliers are available to customers.

1.3.2 Negotiation cycle

During this cycle, the purchasing department ensures that:

RFP to potential suppliers are given

This involves calling the suppliers and giving the RFPs to them. In marketplaces, these requirements can be posted through RFP posting, and response can be obtained through the marketplace bid/ask mechanism or reverse auction mechanisms. The requirements automatically go to the suppliers.

Evaluate the bids

Traditionally, this is done by internally evaluating bids, calling suppliers for clarifications, normalizing the bids of suppliers and then shortlisting them. Through the reverse auction mechanism, this is eliminated as the RFP template itself ensures clarity of bids and the seller agreement ensures that the RFP deliverables are clear and agreed upon.

Negotiations

For large value purchases, the purchase department will call the suppliers based on the bids
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