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Government CIO Outlook | Monday, February 24, 2020
E-procurement being purchase and sale of supplies, work, and services through the internet, the state governments are leveraging electronic procurement to gain efficiencies in how they purchase services.
FREMONT, CA: The citizens commonly do not pay much heed to how their state or local government buys goods and services, until and unless those goods and services are not extremely expensive and do what they are meant to do. Despite electronic procurement solutions buying IT products and services that have been there for several years, state and local agencies are now turning to the model. E-procurement is gaining popularity states the National Association of State Procurement Officials, because they achieve numerous objectives for procurement officials. They enhance clarity, improve competition, expand agencies’ supplier base, maintain the financial controls, measure performance, and promote efficiency in workflows. The procurement-to-pay application is expected to grow from $5 billion in 2018 to $9.2 billion in 2026.
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The state government is investing in e-procurement platforms. In November 2019, a company created a new statewide procurement platform. On the basis of the company’s e-procurement system, they aim to standardize the process in all the state agencies, automate some of the associated tasks, and monitor and manage government purchases of goods and services.
According to Digital Commerce 360, the company states that it can save up to $1 billion over a few years. The states, approximately 85 agencies, have been utilizing a manual RFP process, which creates a hodgepodge of systems that are not sufficient enough and do not collect statewide data, which can enable the procurement officials to make more strategic purchasing decisions to save money. The company’s procurement platform will help the users to track their spending in a thorough manner. With this feature, there will be much more accountability at the agency level. Then it is easy to determine if any opportunity was missed, or figure out how to be able to save money. A transparent picture is painted which was not there at the statewide level, of spending across agencies, with the help of this new system and the reporting and data captured identifying areas where money can be saved by negotiating contract terms will be done. The state government notices the benefits of e-procurement, which is going to be more widespread in the upcoming year.
See also: Top Procurement Solution Companies
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