An e-procurement system utilizes software, data and electronic hardware for procurement management in an organization. Tasks such as vendor management, inventory levels, product orders and logistics are all managed digitally. When selecting an e-procurement system an organization needs to take into account:
- Cost of software implementation
- Software vendor reliability
- Organizational needs, is the system really necessary for efficient business operations?
- Solution should have organizational buy in
- Will e-procurement system be stand alone or part of an integrated ERP system?
The selected solution should also be able to perform the mission critical task in the e-procurement process and deliver on the primary functions as outlined by the organization. Key components or modules that any e-procurement system should have are:
- Supplier/vendor management
- Order management
- Visibility and monitoring system