e-Tendering & Online Procurement: How It Works

eTendring & online procurement

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. 

Photo by Christopher Gower on Unsplash 

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. 

Bottom Line

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.

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Frequently Asked Questions

Penny is a cloud-based Procure-To-Pay system. penny helps you digitize and manage your full procurement cycle from request to approval. Manage RFQs to vendors, compare quotations, send POs and even payment. penny was designed to make things easy and consolidate all of your organization’s spending needs into one intelligent system.

  • Allocate, manage and monitor budgets by expense accounts, projects, departments, location, teams..etc 
  • Streamlining procurement means requests, approvals, and POs won’t be lost in emails or offline.  
  • History and records of requests and purchases can be extracted and tracked easily via the platform. 
  • Product requests are more accurate through the catalog, and hence avoid purchasing mistakes.
  • Reports and analysis can be extracted from the platform, giving you a consolidated data center for all your procurement activities.
  • penny is cloud-based and an easy to use platform. The action-board gives your team a user-friendly and simple experience.

Yes, penny is designed to handle complex procurement operations. We make EVERYTHING simple. Via the contract management feature, you can set the terms and conditions of your contract, and the system will recognize the products and the vendors of your request and match it with specified terms of your contract. Easy.

Putting you in control of your spending is integral to our mission. penny allows you to create Expense Accounts that match your P&L, and assign budgets to them. For example, you can assign $X for your “Travel Budget” and reflect on the budget before approving a travel request. In addition, penny allows you to set budgets for cost centers like projects, departments, locations, and so much more. With penny, you can extract reports and view your spend per Expense Accounts or cost center.

Yes. If your product search finds no results, you can submit a non-standard request.

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