What is e-procurement?

E-procurement refers to the use of electronic methods to procure goods and services, leveraging technology to streamline the procurement process. This includes various online applications, platforms, or tools that facilitate purchasing, sourcing, and contract management through digital means.

The efficiency of e-procurement lies in its ability to automate and simplify tasks that were traditionally cumbersome and time-consuming, such as sourcing suppliers, comparing bids, and managing purchase orders. This digital approach not only helps organizations reduce costs and ensure compliance with procurement policies but also enhances visibility into spending patterns and supplier performance.

Other options touch on aspects of procurement, but they do not capture the essence of e-procurement as effectively. Identifying required materials is a preliminary step that precedes the actual procurement process. The physical delivery of goods pertains more to logistics rather than to the procurement method itself. A method of payment geared exclusively towards online transactions does not encapsulate the broader scope of e-procurement, which encompasses a comprehensive electronic procurement system. Therefore, the definition that focuses on using electronic methods accurately represents the concept of e-procurement.