A wave of the future: e-Procurement in Europe
In Europe the use of paper in Public Procurement is completely illegal. Yes, you read that correctly. Paper submissions are not only discouraged by governing authorities of the EU, but in October of 2018 digital transaction became the law of the land in public purchasing throughout Europe. With this mandate Europeans are leading the way towards the future of procurement, providing the world with an example of a streamlined, efficient, transparent and innovative form of purchasing: electronic Procurement (e-procurement). The EU began implementing directives to move towards a complete system of eGovernment (electronic Government) as early as 2014 (see timeline):
The motive driving the EU to take government and purchasing digital was mobilized by the motive to use technology as a tool to empower government agencies. e-Procurement makes possible increased efficiency, a shift towards sustainability and improved access to information for the public. Ergo e-Procurement is supported, encouraged, and now legally mandated by the EU. This digital form of procurement is saving buyers and suppliers time and money, increasing transparency, and increasing the access of SMBs (small-medium businesses) to public markets. The European Commission identifies digital mandates have improved public procurement in the following ways:
significant savings for all parties
simplified and shortened processes
reductions in administrative burdens
increased transparency
greater innovation
new business opportunities by improving the access of enterprises, including small and medium-sized enterprises (SMEs) to public procurement markets.
Findings from EU Commission publication, more information here:https://ec.europa.eu/growth/single-market/public-procurement/digital_en
Europe provides an example to the world of how investing in public infrastructure through digital procurement increases the impact of public spend, ease and transparency in transaction and public involvement in government.
Public entities in the U.S. are taking steps to adopt digital systems and improve existing processes as government agencies notice the benefit of efficient workflows fueled by technology. Though this wave of a digital future is beginning to wash over the U.S., the rate of change is slow and there is room for significant improvement. The U.S. would be wise to follow the digital pioneering of the EU that is electronic Procurement.
Stay tuned for more on digital transformation and the impact of e-Procurement. For more information from a global leader in e-Procurement, Negometrix, follow this link: https://www.negometrix.com/us/
Sources cited:
- European Commission on Public Procurement:https://ec.europa.eu/growth/single-market/public-procurement/digital_en
- Negometrix: e-Procurement & Contract Management:https://www.negometrix.com/us/
