Directorate of distance education

E-procurement Outcomes

➢
 Intermediate Outcomes
➢ Better services;
➢ Cost savings;
➢ Time savings.
➢ Final Outcomes
➢ Improvement of the labour productivity of the public sector;
➢ Economic rationality (organizational efficiency), simplifica-
tion, transparency and accountability;
➢ GDP growth.

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E-procurement Models &Targets Matrix: Pros and Cons
E-Procurement
➢ Minimized contract management staff 
➢ Support commodity specialisation 
➢ Reduce unit prices (buy side) 
➢ Plan supply 
➢ Reduce selling costs 
➢ Increased margin 
➢ Reduce costs for services/supply of ex-
isting customers 
➢ Reduce procurement transaction and 
automate processes 
➢ Support client account/ category spe-
cialisation 
➢ Plan and forecast demand 
➢ Reduce inventories and off-contract 
buying 
➢ Improve asset disposal options 
➢ Secure new customers 
➢ Reduce distribution costs 
Differences 
E-procurement Advantages
E-procurement advantages are becoming more evident as the 
wider understanding of its many uses become apparent. The main reason 
companies have embraced e-procurement is to increase productivity, 
provide visibility into day-to-day transactions and make it easier for users 
to get the supplies that they need.
It has not been an easy road for e-procurement as implementation 
has its challenges and it has taken time for business managers and pro-
curement departments to fully accept it. The advantages of e-procurement 
are slowly being understood:
Reducing costs
: Costs can be reduced by leveraging volume, having 
structured supplier relationships and by using system improvements to 
reduce external spend while improving quality and supplier performance. 
E-procurement eliminates paperwork, rework and errors.