• Date: May 2016

Governments can benefit from electronic tools to communicate and source supplies or services. Use of electronic communication tools (online-bidding systems) is referred to as e-procurement. Implementation of e-procurement enhances transparency along the entre procurement cycle. The entire process can be monitored online by interest groups. E-procurement eliminates barriers to competition and encourages participation of local dealers, leveling the playing field for big and small enterprises alike. E-procurement offers the opportunity to follow transactions (transactional transparency) and keep record of purchases and different bargaining phases (archival transparency). Procurement authority can easily trace and monitor expenditures regularly.

E-procurement software organizes whole procurement cycle online. Electronic-procurement reduces human interaction, which lead to elimination of corruption and increased value for money. E-websites are also up-dated frequently and latest changes to procurement rules are published to bidders in real time. This reduces use of paper and associated waste of resources in procurement operations. By managing whole procurement related data electronically, public authorities can save costs for printing, distribution and document storage.

Key benefits for procurers:

·         Enhanced efficiency and transparency across procurement cycle (online publication of tender notices, contract award notices, and   online bid submission);

·         Increased accumulation of bids thanks to better awareness of bidders to the bidding opportunities;

·         Increased realization of value- for- money (easier soliciting of bids on lower bid prices due to better and open competition);

·         Better procurement analytics allowing continuous monitoring of procurement activities;

·         Faster processing of procurement activities resulting from online workflow;

·         Enhanced tools to address fraud and corruption; and

·         Reduction in printing, distribution, and storage of paper documents.

 

Works cited:

Paola Magrini (2006): Transparency in e-procurement: the Italian Perspective. Paper presented at the 1st High level seminar on e-procurement, 30-31 January 2006 in Naples, Italy: Available at: https://www.oecd.org/mena/governance/36238443.pdf

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