E-procurement checklist

The principles that govern the delivery of good procurement are applicable to the use of e-procurement.  However, it is really important to recognise that technology of itself will not ensure an improved service but there are principles that need to be followed to ensure the benefits offered through the use of e-procurement can be delivered.  In our checklist we identify ten principles that will help in the digital transformation of your procurement that will yield significant benefits.

• Check that the activity fits with your strategy.  Just because it is technology based it doesn’t mean that it’s the right thing to do. E-procurement offers significant benefits over traditional methods of procurement but it might not fit with the culture of the organisation, the particular supplier base or even the procurement requirement.
• Check the IT proficiency of your supplier base and that they have suitable connectivity.  Different sectors embrace technology differently checking suppliers’ reluctance or acceptance of technology will influence your overall approach to an e-procurement process or the engagement process during the tender stage.
• Create an online workspace (with suitable permissions) for the procurement activity and use this to store and share information. 
• Develop a timeline or ‘project plan’ for the procurement activity and store this in the collaborative workspace.
• Before embarking on the procurement activity check that you have all the necessary authorisations.  The specification is signed off by the empowered person, that budgetary allocation is available (if the exercise is to garner estimates and there is no firm intention to purchase then make this explicit to the suppliers in the documentation) and that the individual responsible for overseeing the delivery agrees to the schedule.  All of these authorisations should be stored in the collaborative workspace.
• Ensure that you have a communications plan in place to engage the suppliers.  It is really important to make sure suppliers submit bids for the right thing, there is the room for misinterpretation engagement will reduce this risk.  Whilst e-procurement provides the opportunity to communicate electronically you may wish to meet suppliers or host a ‘meet the buyer’ event prior to the procurement event.  To save time and costs consider holding a webinar event as a ‘digital meet the buyer’ event.  Always reply to queries but be mindful of not benefitting one supplier over others through accidentally giving away information. Remember to close out the procurement event when it is concluded.
• Remember that using an e-procurement tool allows you to share much more information and communicate it than by issuing, via e-mail, individual tender packs.  Provide as much information as possible through your e-procurement tool. Don’t be afraid to issue further information if it becomes available – although carefully consider the implications to the timelines before doing so.
• During the tender period there is the potential to access the e-procurement tool to view which suppliers have accepted the event, downloaded the detail and uploaded submissions, without viewing the submissions themselves.  Understanding the level of engagement can afford you, without compromising the event to offer suppliers in guidance in uploading documents or merely, through a general enquiry, to give a gentle reminder as to the closing date and the need to upload before then.
• Make sure that as part of the planning process that a back-up plan is created and consider what extensions of time, if any, should be considered in the eventuality that one is required. Remember, the use of technology may not be intuitive to some suppliers and what we are trying to achieve is a competitive event rather than a de-selection of suppliers due to lack of technology competence.
• Once the event is complete download the information from the e-procurement tool into the collaborative area.  Once all the records and information have been collated locking the collaborative folder will provide a single auditable repository of the procurement event’s history.