[1] Examples of e-procurement include e-auctions, e-tendering, automated issue of purchase orders and related receipting and invoicing processes, internet ordering, use of purchasing cards,[1] and the use of information and networking systems such as electronic data interchange and enterprise resource planning systems.
there is one globally developed open extensible markup language based standard framework built on a rich heritage of electronic business experience.
It consists of five layers - messaging, registry and repository, collaboration protocol, core components and business processes.
[10] Jari Tavi identified three stages in the evolution of e-procurement technology: initial systems were functional for procurement professionals but did not address user need; a second generation used web-based technology and aimed to support end-users as well as meeting procurement teams' needs but lacked flexibility and usability.
These directives, which were subsequently revised in 2014,[12][13] set up the framework for transparent and equal opportunities for public procurement including the mandatory use of electronic communication for publishing opportunities, the standardization of procurement processes, electronic tender submission procedures, handling of objections etc.
[15] E-auction is the process of conducting an auction to sell assets, natural resources or other goods through online competitive bidding.
[16] It occurs when contracting authority aims to control costs, drive service excellence and mitigate risks to gain increased value from their vendors throughout the procurement process.
The process starts from publication of items online by the suppliers, and continues to the electronic selection, order, reception, and finishes with payment by the purchasing side.
Act 590 of Louisiana's 2008 Regular Legislative Session requires political subdivisions to make provisions for the receipt of electronic bids.
E-procurement projects are often part of the country's general e-Government efforts to better serve its citizens and businesses in the digital economy.
An example is the 'System for Acquisition Management (SAM)' which on July 30, 2013, combined information from the former Central Contractor Registration and Online Representations and Certifications Application (ORCA),[28] in the United States.
[29] In the case of government procurement, the benefits might be efficiency, transparency, equity, fairness and encouragement of local business.
Because e-procurement increases competition, lowers transaction costs, and has potential to minimize time and errors in the bidding process, efficiency is achieved.
Because of easier accessibility and openness of the internet, more people can attain earlier pieces of information, which increases transparency.