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Type of E-Procurement

There are seven main types of e-procurement: 
  1. Web-based ERP (Electronic Resource Planning): ERP software packages (from vendors such as SAP AG, Oracle and The Sage Group) are designed to optimize the resource planning of an enterprise. One of the many features of ERP software is its ability to automatically generate purchases orders using the Bill of Materials for'the finished product as a basis. Web-based ERP software can go one step further. As well as generating purchase orders it can forward them to suppliers in order to fully automate the procurement process. Based on the ideal manufacturing process laid out by the ERP software, these orders ensure that materials will be available in time to begin production at the ideal time. In addition to generating new purchase orders, ERP software can also issue reschedule notices to suppliers. Reschedule notices are supplementary orders that can either cancel, delay, speed up and alter the size of pending orders. 
  2. E-MRO (Maintenance, Repair and Overhaul): This is same as web-based ERP except that the goods and services ordered are non-product related MRO supplies. ERP software can also generate and send purchase orders for maintenance, repair and operating supplies to enable the smooth running of the production process. E-MRO orders are of greatest benefit to automated production lines using numerical control machine tools. Many automated machine tools can run self-diagnostic programs, notifying an operator by SMS message to a cell phone in the event of components failure. In addition to a message to the operator the tool can also use ERP software to generate an e-MRO order for replacement parts.
  3. E-Sourcing: E-sourcing is the use of the Internet for the identification of new suppliers for a category of purchasing requirements. The major benefit of e-sourcing is the competitive aspect by which suppliers bid for projects. Suppliers submit bids along with various details of the service they promise to provide, and purchasers can pick and choose from the offers. 
  4. E-Tendering: E-tendering is the use of sending requests for information and prices to suppliers and receiving the responses of suppliers using Internet technology. 
  5. E-Reverse Auctioning: E-reverse auctioning is the use of Internet technology to buy goods and services from a number of known or unknown suppliers.


  • 6) E-Informing: Finally, e-Procurement can be used for the simple job of exchanging purchasing information between buyers and suppliers. Using Internet technologies such as e-mail the process of accumulating a database of supplier information can be made much simpler than by using traditional contact methods. Perhaps most importantly, these databases can be applied in the future to generating action in a reverse auction. By informing suppliers of forthcoming auctions an enterprise can allow suppliers the time to build a tender. 
  • 7) E-Marketsites: Buying communities can access preferred suppliers' products and services, add to shopping carts, create requisition, seek approval, receipt purchase orders and process electronic invoices with integration to suppliers' supply chains and buyers' financial systems.
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  1. Gway ERP9 June 2021 at 23:12

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