This video outlines the benefits of eProcurement and factors borrowers should consider in implementing it as part of a long-term strategy.
What is e-procurement?
E-procurement is the use of digital technology in the procurement of goods, works, consulting services and nonconsulting services.
ADB encourages the use of e-procurement systems across the different stages of the procurement cycle, including procurement planning, bidding, bid evaluation, contract award, and contract implementation.
What are the benefits of e-procurement?
Through automating manual or paper-based processes, e-procurement increases efficiency by significantly reducing processing time.
It also allows for the broadest access to qualified suppliers and enhances transparency and fairness in the bidding and selection process.
By integrating procurement requirements, the borrower can leverage purchasing power across multiple projects or agencies, which can reduce the total costs of procuring goods and services and enhance Value for Money in procurement.
What factors should borrowers consider in implementing e-procurement?
In deciding whether to buy standard software applications or develop a customized e-procurement system, the borrower needs to assess its existing processes and infrastructure, and select which option best fits its current and future requirements.
The borrower also needs to evaluate its capacity to implement, manage, and maintain such a system, and consider local regulatory requirements.
ADB’s Guidance Note describes the benefits of e-procurement and the different approaches borrowers can take in implementing it as part of a long-term strategy.