‘Procurement’ is the term used to describe the tendering of goods and services: a company decides that it requires some goods, say a fleet of cars for its salesforce. It would then announce this publicly and invite a number of auto companies to bid for the business.
Many companies are now switching to the web for the procurement process. A website devoted to procurement will normally advertise current procurement opportunities, provide forms facilities for companies interested in tendering and provide facilities whereby the progress of a tender can be tracked.
There are a number of advantages in carrying out the procurement process electronically. For suppliers it means that there are often more tendering opportunities, lowered cost of tender submission and collaborative tendering with other companies. For the company offering tenders there is a major reduction in costs.