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Electronic 

procurement 

(e‑procurement)

The electronic integration 

and management of all 

procurement activities, 

including purchase 

request, authorisation, 

ordering, delivery and 

payment, between a 

purchaser and a supplier.

Electronic 

procurement 

systems (EPS)

An electronic system 

used to automate all or 

part of the procurement 

function.

Box 7.1

What is e‑purchasing?

This is how the Chartered Institute of Purchasing and Supply (CIPS, www.cips.org) 

explains e‑purchasing to its members:

The combined use of information and communications technology through elec‑

tronic means to enhance external and internal purchasing and supply management 

processes. These tools and solutions deliver a range of options that will facilitate 

improved purchasing and supply management.

The range of potential options for improving purchasing processes are indicated by 

these benefits described by CIPS:

  1 

Evaluation of end‑to‑end trading cycles, e.g. evaluation and possible re‑engineer‑

ing of trading cycles leading to reduced cycle times; improved workflow of the 

internal procurement process enabling  end‑  user  self‑  service and decentralisation 

with centralised control through  company‑  specific catalogues; new functionality 

such as online bidding in e‑auctions and e‑requests for quotations (RFQs).

  2 

Use of more efficient and cheaper connectivity methods such as the Internet 

and XML. XML is not, however, a requirement for e‑procurement.