E-Procurement for Local Governments
Local governments require effective internal control system and an organized way to collaborate with other authorities in procurement. To increase purchase department efficiency and ensure an accurate spend analysis, local government departments need E-procurement software.
Better Purchase-to-Pay Process means better provision of services for citizens.
Local governments require setting up measures to establish control over the buying process and employ a rigid purchase-to-pay process.
A good e-procurement solution would assist companies toopt for the best among the suppliers, with no particular authority or individual deciding which suppliers are used.
With the help of such a smart tool, purchases can be properly approved before being submitted to suppliers.
For timely and organized provision of services to citizens, local government need to use tools for tracking spend against budgets, avoiding potential overspends
Better Control and Monitoring
Apart from streamlining the purchase process, there is a need for a better control and monitoring system. This is necessary for bringing down overall costs as well asnon-staff expenditure.
Procurement through electronic means assists local government bodies in these ways:
- Keeping track of capital expenditure, using integration to an assets management system
- An organized way to keep track of non-contracted spend such as utilities, telecoms. These expenditures require pre-payment approval and analysis, which can be done with such tools
- Improved management of employee expense claims.
- Implementing a better Purchase-to-Pay Process
Paper-based systems present a lot of work for the Accounts Payable staff. A better purchase system would allow them to accurately reconcile what was ordered, whether the order reached its destination and what is stated on the invoices.
E-procurement software assists the officials and staff to order goods or services without requiring them to have an in-depth knowledge of the procurement process.
Government agencies require a simple electronic workflow which allows requests within the organization, and which can be used to automate the process of resolving invoice discrepancies.
Better Collaboration with procurement agencies
Local government agencies need to work and collaborate with relevant authorities fordriving public sector savings. Local authorities should share some procurement services and exploit economies of scale when negotiating new deals with suppliers.
A smart e-Procurement approach requires taking the SME community as well as larger national suppliers into account. While large suppliers may have the necessary system put in place, smaller businesses may not be as advanced in IT.
Improving Local Economy
Procurement via electronic means enables SMEs to compete for local government contracts on the same level as larger suppliers. SMEs can enjoy new opportunities to trade with other small businesses and others all across the region.
A good procurement can improve local economy by these methods:
- Permitting local SME suppliers with better management of catalogues online.
- Allowing suppliers to supervise the status of their invoices to the buying authority online.
- Permitting suppliers to send electronic invoices without the need to invest in back-office systems.