Electronic procurement can be described as the sourcing, negotiation with suppliers and research and development by using electronic markets on the internet is called as electronic procurement. It can also describe as the technological facilitation to the buyer through internet is called electronic procurement. It also includes electronic sourcing, electronic tendering, electronic informing, electronic MRO, electronic reverse and through website projects. Due to e-procurement the cost of the business operation should be reduced. Cost is reduced through the paper cost minimizing. On the other hand it raises the expectations of buyers and increases the satisfaction level. It should also minimizes the time duration.
E-procurement enables the procurement process easier and analyzes reports in the procurement system. It means that one can confirm his policies regarding to the procurement procedure. It also increases the productivity of the work e.g. Once you have learnt the procedure, it will be the less time consuming as compare to the traditional procurement. By having the online records, it is easier to reusable than the paper work.
It will also increase the speed of transaction which supports and simplifies the purchasing process so that transactions speed is increased and helps to eliminate unnecessary activities which are help us to focus on the task. It also helps to set the standers e.g. if many departments exists regarding procurement decisions, their behavior can be different which describes what will they purchase and how will they purchase. Purchasing through electronic procurement becomes very easier in the every field of industry. Electronic work also helps to reduce the errors; it is easier to check the errors as compare to the paper work. Along with all of this past order are easier to be referenced.
On the other hand, there are some disadvantages of e- procurement, due to the shorter ordering cycle a wider adoption of just in time strategies and increase supplier involvement in product development. Most of time supplier faces the problems e.g. high training costs, due to dealing with more than one market place, high risk of data compromising and sometimes full organizational restructuring. The other problem that is faced by the supplier, there is no face to face dealing which make the supplier uncomfortable as they used to face to face dealing with the client. Rapid growing multiple standers creates problems for both buyers and supplier due to the uncertainty about the supplier company either it have good repute or not. Multi standards used for procurement electronically create confusion to select the best one which can fulfill the required standards.
Now we can say that one should adopt the modern technology to run with the current era. Now there is global village concept worldwide to survive we should adopt the modern modes of business. By the above analysis, e-procurement is more beneficent for the MFB, Solicitation of quotes in not only the requirement to bid but it also include the formal process in which bid specification, notice to bidders and include all potential bidders. E-procurement allows several units to purchase commodities and services those including energy suppliers through online bidding and reverse auction programs.
Currently, multi-attribute electronic procurement methods are becoming popular in the field of natural gas. This curve refers to buyer manager towards that which bidder is taking part competitively in the bid. Furthermore, It also indicate about the future participant bidding suppliers.