Question

Explain what e-procurement is, and describe two different technologies that fall under that category.

Answer 1

E-Procurement: It is the process of selling and purchasing of supplies and services over the internet. It is also know as suppliers exchanges. E-procurement helps to remove the entire manual procurement process.

Components of e-Procurement:

1. Indent Management: This is the process where all the demand of goods will be stored and proceed further.

2. RFQ Creations: It is the process for requesting to the vendors for the rates against the demand which is shared with them.

3. Bid/ Quote Submission: Now vendor submit their rates against the demanded items with delivery days, payment terms and other term & conditions.

4. Bid Evaluation: After receiving the quote from the vendor, now the evaluation is done at the buyers end and choose the best rates with term & conditions.

5. Vendor Selection & PO Preparation: Once the rates or quotations are finalized against the demanded items; vendors are selected and purchase order is released by the buyer to vendor.

Two different technologies that fall under that category:

1. Digital Marketing: Digital technology helps to by giving the path for growth via digital marketing.

2. Artificial Intelligence: Artificial Intelligence is a technology which helps to leading procurement organization. Organization are getting support from AI to increase the area of search. AI will also helps to procurement of material by relocating resources according to the requirements.