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This research paper by NASPO provides a robust discussion of E-procurement systems. Of particular interest in this paper is how E-procurement systems address procurement principles and drive business value outcomes for the public organization. In addition, the report also discusses the various forms of funding used by specific states and then concludes with several case studies on states governments’ experiences with the implementation of their E-procurement systems and the lessons learned. 

The following is a summary of the points made in the paper on how E-procurement systems support procurement principles and drive business value outcomes in a public organization context. The paper provides a discussion on each of the points listed below: 

  • Support for Procurement Principles 
    • Increasing Transparency 
    • Achieving Value and Promoting Competition 
    • Expanding the Supplier Base 
    • Maintaining Financial Controls and Measuring Performance 
    • Promoting Efficiency in Workflow and Approval Authority 
  • Business Value Outcomes 
    • Spend management 
    • Enhancing supplier participation and performance 
    • Streamlining processes 
    • Reduced process costs 

In addition to the business value outcomes mentioned above, the paper goes on to make a very interesting and important point as it pertains to leveraging the best available capabilities the market has to offer as opposed to sticking with home grown/legacy systems: 

A final source of benefit to be considered is the retirement of existing or legacy systems that the eProcurement system intends to replace. While every situation is different, the licensing model common for most eProcurement systems today is under a software as-a-service model which can, one time only, make funds available as buyers switch from a model with a single, large payout, in favor of a smaller monthly rental or service fee. Additionally, personnel dedicated to supporting existing systems may be able to be repurposed to mission critical projects as the ongoing support burden for software-as-a-service is typically borne by supplier personnel. 

The case studies included in the paper cover the experiences of the following states on the implementation of their E-procurement systems and the lessons learned. Page numbers are listed here for ease of reference of each state’s case study: 

  • Arizona – page 8 
  • Colorado – page 9 
  • Michigan – page 9 
  • Nevada – page 10 
  • North Caroline – page 11 
  • Virginia – page 11-13  

Full Report: ERP and eProcurement Systems

Image Courtesy of Christiaan Colen

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