e-Procurement Overview

e-Procurement is carrying out part or all of the organisation’s procurement activity through the Internet and/or other electronic systems.

The diagram below shows the procurement cycle and five main areas the Council can use e-Procurement:

eSourcing is identifying new suppliers for a specific category of purchasing requirements using Internet technology. We advertise significant contract opportunities to seek interest from suppliers; however before formally approaching the supply market in this way we conduct research as to the nature of the supply market and the products/services available.  This is normally done using a combination of traditional and electronic means.

eTendering is sending requests for information and prices to suppliers and receiving the responses of suppliers using Internet technology – it can also encompass the evaluation of those responses online and the exchange of communications confirming award of contract electronically also.  We are currently exploring whether there is a business case to introduce such a system.

eAuctions are online ‘auctions’ (sometimes referred to as reverse auctions) in which the role of the buyer and seller are reversed, with the primary objective to drive to secure best value for money. In an ordinary auction (also known as a forward auction), buyers compete to obtain a good or service. In a reverse auction, sellers compete to obtain business.

We have participated in a number of eAuctions through our purchasing agent ESPO and a regional programme of events run by the East Midlands Centre of Excellence (now the East Midlands Improvement & Efficiency Partnership), and currently use this tool on an ad hoc basis.

eOrdering is the raising of requisitions and orders by staff on an electronic system and then sending these orders electronically (either by e-mail or electronic data interchange (EDI).

We currently use Oracle iProcurement, a module of our Financial Information System for this purpose. More information is available on iProcurement

pCards or procurement cards – company pCards or Procurement cards are similar to corporate credit cards and are used widely by the public sector. They are used for purchases made on the move, online and in the case of an emergency. More information is available on pCard page

eInvoicing is the receipt and payment of invoices electronically. We are currently exploring whether there is a business case to introduce such a system. We prefer to pay invoices electronically by BACS, and to send remittance advices by e-mail wherever possible.