e-Purchasing

e-Purchasing, also called electronic purchasing or e-procurement, is the use of online processes and systems to conduct purchasing activities. Buyers and suppliers handle the steps of a purchase through web-based systems instead of paper files and manual exchanges.

The term describes a procurement process or system, not a type of contract. CanadaBuys, the Government of Canada's electronic procurement environment, defines e-procurement as including online sourcing, vendor management, catalogue management and contract management, as set out in the CanadaBuys glossary. For Canadian suppliers, e-purchasing is how federal opportunities are found, viewed and bid on.

The four functions CanadaBuys assigns to e-procurement

The CanadaBuys definition names four online activities that together make up the electronic procurement lifecycle:

• Sourcing: publishing opportunities and soliciting bids or offers.
• Vendor management: registering suppliers and maintaining their business information.
• Catalogue management: handling the catalogues of goods and services that buyers can order from.
• Contract management: administering the contract once it is awarded.

The federal system supports this whole lifecycle. A supplier may therefore deal with e-purchasing at several points, from first registration through to contract administration.

How e-purchasing runs on CanadaBuys and SAP Ariba

Public Services and Procurement Canada (PSPC) uses CanadaBuys as the official source for Government of Canada tender and award notices. The Government of Canada directs suppliers to CanadaBuys to register, complete a business profile and access the electronic procurement solution used to view and bid on opportunities. PSPC explains this on its electronic procurement transition page.

CanadaBuys is a suite that includes the tendering service and applications such as SAP Ariba, SAP Fieldglass and ServiceNow. For solicitations processed through electronic procurement, the federal tender notice includes a link to SAP Ariba. Suppliers use that link to reach the bidding details and the solicitation documents. The process is described in PSPC's guidance on bidding on opportunities.

e-Purchasing at NATO organizations

NATO bodies also use online portals to publish opportunities, provide solicitation documents, register suppliers, receive electronic bids and administer contracts. Related terms in NATO usage include e-procurement and e-bidding. Three examples show the pattern:

• The NCI Agency uses its Neo eProcurement system. Suppliers can register, receive opportunity information, submit electronic bids, quotations and offers, and support contract administration. The agency's Neo supplier registration form covers the registration step.
• The NSPA ePortal includes an eProcurement module for viewing and bidding on Notices of Intent and Requests for Proposals for infrastructure projects. It is available through the NSPA ePortal.
• NATO's procurement website gives access to solicitation information and documents for goods and services required by NATO's International Staff, as explained in its procurement FAQ.

Each organization runs its own system, so registration with one does not replace registration with another.

What e-purchasing means for a supplier bidding on Canadian public contracts

A federal supplier needs to work inside the electronic system. In practice, that means five steps:

• Monitor CanadaBuys for tender and award notices.
• Register where required and complete the supplier business profile.
• Read each notice to see whether the procurement is processed electronically.
• Follow the electronic-submission instructions in the solicitation.
• Use the linked electronic procurement system, such as SAP Ariba, when the notice requires it.

A bid team should treat the notice as the authority on how to submit. Setting up the profile and system access before a solicitation closes leaves time to focus on the bid itself.