In today’s tech-driven world, knowledge is power. Nowadays, businesses cannot survive without having access to reliable e-Tendering and online procurement solutions. Many have been using these systems to source materials and equipment, manage supplier relationships and ensure compliance.
Still, many companies are not 100% decided on using these tools because they don’t exactly know what they are and how they work. If you feel the same way, keep reading to discover what e-Tendering & online procurement is.
What is E-Tendering?
E-Tendering is a mechanism for sending or receiving tenders via digital means rather than the traditional paper method. It allows us to transfer papers securely over the Internet, rather than stuffing them into an envelope and mailing them.
How Does it Work?
Here’s how e-Tendering works. Simply said, the buyer submits all pertinent documentation, which includes:
- Evaluation questions
- Acceptance criteria
- Requirements specification
- Form of tender
- And others
Suppliers then create an account on the relevant site and submit an official request to the buyer. They will then have access to the documents via downloading the file.
Then, suppliers can submit bids/proposals digitally without the need to print. They can also edit/adjust their bids as often as they want until the tender deadline.
What is E-Procurement?
When a company uses the Internet (or occasionally an intranet network) to procure the goods and services it requires, it is referred to as e-procurement. With e-procurement, there’s no need for tedious paperwork. E-procurement solutions drastically reduce manual work and human errors thanks to automated features.
How Does it Work?
E-procurement starts with a purchase requisition, which an authorized user can approve online. Using consistent approval workflows, e-procurement systems ensure that users easily get what they want. In other words, the approval of every item automatically leads to creating a new purchase order.
After the requisition automatically leads to a new purchase order, the e-procurement solution will digitally send it to the supplier. Once delivery is complete, the system will mark the order as “received”, then it will create an invoice and send it to the accounts payable for settlement.
Nearly every day, businesses need new materials, resources, and equipment. These are usually vital for the future of the operation. They can’t afford to wait too long, or their work will come to a complete halt.
As a result, organizations must abandon paper-based procurement as quickly as possible and move to e-Tendering and online procurement solutions. You don’t need to look very far for such them because we at Penny have the right solution for your needs and goals. Just contact us and let us take it from here.