Introduction

E-procurement is the use of electronic systems and platforms to manage the procurement
process, from sourcing to payment. It can offer many benefits, such as reducing costs,
increasing transparency, and improving efficiency. However, it also faces some challenges and
barriers that need to be addressed to ensure its successful implementation and adoption. The
purpose of this article is to explore some of the main challenges and obstacles to adopting e-
procurement and to suggest some possible solutions, recommendations, and opportunities.

The main challenges and barriers to adopting e-procurement

1. Lack of infrastructure

One of the main challenges to adopting e-procurement is the lack of adequate infrastructure,
such as reliable internet access, electricity, and hardware. Without these basic requirements, e-
procurement systems cannot function properly or consistently and may result in delays, errors,
or fraud. Moreover, the lack of infrastructure may limit the participation of potential suppliers,
especially those in remote or rural areas, who may not have the means or the skills to access
and use e-procurement platforms. To overcome this challenge, companies need to invest in
improving their infrastructure, and provide alternative or backup solutions, such as offline or
mobile-based systems, to ensure the continuity and accessibility of e-procurement.

2. legal and regulatory framework

Another challenge to adopting e-procurement is the legal and regulatory framework, which
may not be compatible or supportive of e-procurement practices. For example, some countries
may not have laws or regulations that recognize or enforce electronic contracts, signatures, or
payments. In addition, they may not protect the privacy and security of data and transactions.
This may create legal uncertainties, risks, or disputes, and discourage the use of e-procurement.
Furthermore, some countries may have complex or inconsistent procurement rules and
procedures, which may not be aligned or integrated with e-procurement systems, and may
cause confusion, inefficiency, or corruption. To overcome this challenge, countries need to
review and reform their legal and regulatory framework, and harmonize and simplify their
procurement rules and procedures, to facilitate and promote e-procurement.

3. Organizational and cultural factors

A third challenge to adopting e-procurement in countries is organizational and cultural factors,
which may affect the willingness and readiness of the stakeholders involved in the procurement
process, such as public officials, suppliers, and civil society. These factors may include
resistance to change, lack of skills and knowledge, and lack of trust and transparency. To
overcome this challenge, countries need to conduct awareness and education campaigns,
provide training and support, and inform and engage stakeholders about the advantages and
opportunities of e-procurement. Moreover, they should ensure that e-procurement systems are
transparent and accountable, and that they provide feedback and monitoring mechanisms, to
build trust and confidence among stakeholders

4. Technical and operational issues

The fourth challenge to adopting e-procurement in countries is technical and operational issues,
which may impact the performance or functionality of the e-procurement system or the quality
or satisfaction of the process. To overcome this challenge, countries need to adopt or develop
e-procurement systems that are compatible and interoperable with other systems or platforms,
and that comply with international or regional standards or protocols, to enhance the integration
and communication of e-procurement. Additionally, they must ensure that e-procurement
systems have adequate and regular maintenance and security measures, such as updates,
backups, or encryption, to prevent or mitigate technical failures, cyberattacks, or data breaches,
and to ensure their availability or integrity. Moreover, countries need to make sure that e-
procurement systems are user-friendly and usable, with simple or intuitive interfaces, menus,
or instructions, and fast or stable responses, to improve the user experience and satisfaction.

Opportunities of e-procurement

1. Elimination of potential errors

Procurement activities (including budgeting, auditing, etc) of contracting authorities and

bidders are currently based predominantly on “paper” procedures. Conducting paper-based
procedures not only involves substantial efforts and costs for bidders and purchasing entities,
but also provides a huge number of potential sources of (legal) errors. Formal errors represent
essential burdens for bidders and contracting authorities when preparing a tender or
participating in a tender procedure. E‑procurement eliminates paperwork and rework for
contracting authorities. By standardizing the procurement process, e‑procurement platforms
also eliminate a significant number of formal sources of errors (such as incomplete tenders,
late tenders, wrongful/early opening of tenders, etc.).
 2. Effective tool to fight corruption

E‑procurement has been identified as an effective tool for fighting corruption. It creates a very
transparent environment and a more formal and reliable audit trail for the process of promoting,
issuing, clarifying, evaluating, and awarding tenders. The opportunities for illegally
influencing the tender process are substantially reduced through implementing standardized
procedures and tracking the complete tender procedure. This includes any communication
between bidders and the purchasing entity. Moreover, e‑procurement platforms provide a range
of tools to reduce corruption, such as certain data management tools offering a granular view
of every element of the tender, highlighting who has contributed to or accessed the information,
or providing much greater insight into the procurement process so that patterns can be spotted
and analyzed. Specifically, the platforms track who submitted what, at what price and when.

3. Potential savings

When contracting authorities set up an e-procurement system, they also have the opportunity
to re-engineer the entire procurement process and improve their administrative efficiency as a
result of cutting the length of the purchase-to-pay cycle, reducing administrative burdens, and
improving auditing capabilities. Public entities that have already implemented e‑procurement
report savings.

Conclusion

End-to-end e-procurement will significantly change the procurement process for all parties
involved, both bidders and contracting authorities. Once the technical and legal framework has
been established, e-procurement is expected to increase transparency, facilitate SME
participation, enable stronger competition, and foster innovation and simplification.