IT Systems in Procurement: e-requisitioning, e-catalogue, e-sourcing, e- Payment Technologies

Information Technology (IT) has transformed procurement from a manual, paper-driven process into a highly automated, transparent, and efficient function. Modern organizations leverage digital procurement systems to streamline sourcing, requisitioning, payments, and supplier collaboration. IT systems provide real-time data visibility, reduce transaction costs, and minimize human error, thereby improving procurement efficiency. Tools such as e-requisitioning, e-catalogue, e-sourcing, and e-payment technologies enhance control, compliance, and supplier relationship management. These systems enable procurement teams to work strategically, focusing on value creation rather than administrative tasks. Moreover, IT solutions support integration with Enterprise Resource Planning (ERP) systems, ensuring seamless flow of procurement information across departments. This digital transformation enhances decision-making, agility, and competitiveness in today’s dynamic business environment.

E-Requisitioning

E-requisitioning is an IT-enabled process that automates the creation, approval, and tracking of purchase requisitions within an organization. Traditionally, requisitions were manually filled out and routed for approvals, leading to delays and errors. With e-requisitioning, employees can generate electronic requests for goods or services through a centralized system integrated with organizational policies. This system ensures that all requisitions follow proper authorization hierarchies, budget checks, and compliance rules before being converted into purchase orders. It improves transparency by providing real-time status tracking, reduces paperwork, and minimizes bottlenecks in the procurement cycle. Furthermore, it integrates with inventory systems to prevent duplicate orders and ensures procurement aligns with demand planning. E-requisitioning also strengthens accountability by maintaining digital audit trails, helping organizations track who requested what, when, and why. Ultimately, it streamlines internal processes, improves efficiency, and accelerates procurement cycles, ensuring timely availability of required materials and services.

Scope of E-Requisitioning:

• Streamlined Request Process

E-Requisitioning simplifies the process of raising and approving purchase requests within an organization. Employees can electronically submit requests, attach necessary specifications, and route them to authorized approvers. This eliminates paperwork, reduces administrative burden, and minimizes delays. The streamlined workflow enhances transparency and ensures that requests comply with organizational policies. By centralizing all requisitions digitally, companies can track, monitor, and approve requests more efficiently, leading to quicker procurement cycles and improved operational productivity across departments.

• Policy Compliance

One major scope of e-requisitioning is ensuring adherence to procurement policies and organizational guidelines. The system integrates approval hierarchies and automatically enforces spending limits, vendor selections, and budgetary controls. This reduces policy violations, unauthorized purchases, and maverick spending. It ensures procurement transparency and accountability by documenting every step digitally. The compliance framework not only protects organizations from financial risks but also helps in audits and reporting. Thus, e-requisitioning strengthens governance while simplifying procurement procedures in alignment with corporate strategies.

• Cost Control and Savings

E-Requisitioning contributes significantly to cost control by reducing unauthorized or duplicate purchases. By enabling pre-approved vendor catalogs and pricing within the system, organizations ensure standardization of costs and minimize variances. Real-time budget checks prevent overspending, and consolidated requisitions often unlock bulk-purchase discounts. The reduction in manual processing errors also cuts unnecessary costs. Overall, the system creates a disciplined procurement environment where expenses are monitored and aligned with financial goals, helping companies save resources while maintaining operational efficiency.

• Enhanced Transparency

The scope of e-requisitioning extends to promoting transparency in procurement activities. Every request, approval, or modification is logged digitally, creating a clear audit trail. Stakeholders can access real-time information about the status of requisitions, pending approvals, or historical data. This reduces the risk of fraud, favoritism, or errors in procurement processes. Transparency fosters trust between employees, management, and vendors while ensuring accountability. With visibility into the procurement lifecycle, organizations can improve decision-making and foster a culture of openness.

E-Catalogue

An e-catalogue is a digital, online repository of goods and services provided by approved suppliers. It allows employees to browse, compare, and select products in the same way as an online shopping platform but tailored to organizational needs. E-catalogues standardize procurement by ensuring that all purchases are made from pre-approved suppliers at negotiated prices, thereby promoting cost control and compliance. They provide detailed product specifications, pricing, availability, and delivery information, which enhances procurement accuracy. E-catalogues also reduce maverick spending, where employees purchase outside of approved channels. Integration with e-requisitioning systems allows seamless selection and ordering of items, minimizing manual errors. Additionally, e-catalogues can be customized to reflect organizational preferences, such as sustainable suppliers or preferred brands. By enabling transparency and efficiency, e-catalogues reduce procurement cycle time, increase user convenience, and foster stronger supplier relationships, while also supporting spend analysis and strategic sourcing decisions.

Scope of E-Catalogue:

• Centralized Product Information

E-Catalogue provides a centralized platform where all product and service details are stored digitally. Employees can easily browse through approved items with specifications, prices, and vendor details. This eliminates the need for multiple paper catalogs or manual searches, saving time and effort. With standardized and updated information, purchasing decisions become more accurate and efficient. Centralization also reduces confusion, ensures uniformity in procurement, and enhances operational efficiency across departments by providing access to reliable product data in one place.

• Standardization of Procurement

The scope of e-catalogue extends to enforcing standardized purchasing across the organization. By integrating pre-approved vendor lists, pricing, and specifications, it reduces variations in purchases and maintains consistency in quality. Standardization helps organizations avoid maverick spending, negotiate better deals, and strengthen supplier relationships. With uniform products and services, cost control becomes more manageable, and operational efficiency improves. This streamlined approach supports organizational policy compliance and ensures that all departments procure items within defined standards and guidelines.

• Real-Time Updates

E-Catalogue allows vendors and procurement teams to update product details, pricing, and availability in real time. This ensures that employees always access the latest and most accurate information when raising requisitions. It eliminates issues related to outdated pricing or obsolete products, which can cause inefficiencies or financial discrepancies. Real-time updates also improve supplier collaboration and reduce errors during ordering. Organizations benefit from agility in procurement, timely decision-making, and improved accuracy in financial planning by using updated product data.

• Improved User Experience

Another important scope of e-catalogue is enhancing the user experience for employees involved in procurement. The interface resembles online shopping platforms, making it simple and intuitive to search, compare, and select products. Categorized items, advanced search filters, and detailed product descriptions make the process faster and user-friendly. This ease of use reduces training needs, accelerates requisition creation, and minimizes errors. By making procurement more convenient, e-catalogue increases employee satisfaction, productivity, and overall efficiency in business purchasing activities.

• Better Supplier Management

E-Catalogue strengthens supplier management by allowing integration of vendor-specific catalogs into the system. This helps organizations maintain transparency in vendor offerings and compare suppliers based on price, quality, and availability. It ensures that only approved suppliers are engaged, reducing risks associated with unreliable vendors. Suppliers also benefit by showcasing their products directly to buyers in an organized digital format. This fosters stronger relationships, enhances communication, and encourages competitive pricing while supporting long-term collaboration between organizations and suppliers.

• Cost Savings and Control

One of the most significant scopes of e-catalogue is enabling cost savings and financial control. Pre-negotiated prices, bulk deals, and supplier contracts are embedded into the catalog, preventing overspending. Employees purchase from approved catalogs, reducing the chances of unauthorized procurement. Real-time tracking of purchases ensures alignment with budgets and financial planning. By eliminating manual inefficiencies and maverick buying, organizations achieve long-term savings. Thus, e-catalogue contributes directly to cost optimization and better financial discipline across all procurement functions.

E-Sourcing

E-sourcing refers to the use of IT tools and platforms to conduct sourcing activities, such as supplier identification, request for proposals (RFPs), request for quotations (RFQs), and reverse auctions. Unlike traditional sourcing, which is time-consuming and paper-intensive, e-sourcing leverages digital platforms to connect buyers and suppliers efficiently. It allows organizations to compare suppliers based on price, quality, delivery, and compliance criteria in a structured and transparent manner. E-sourcing platforms often include evaluation tools, automated scoring, and communication channels that streamline supplier selection. Additionally, reverse auctions encourage competitive bidding, often driving cost savings. Beyond transactional efficiency, e-sourcing enhances strategic procurement by enabling access to a wider supplier base, supporting global sourcing initiatives, and reducing risks through better visibility into supplier performance. Organizations benefit from increased transparency, auditability, and negotiation power. Overall, e-sourcing empowers procurement to achieve cost efficiency, improve supplier collaboration, and align purchasing with long-term business goals.

Source of E-Sourcing:

• Supplier Portals

Supplier portals act as a primary source of e-sourcing by connecting buyers directly with multiple vendors on a single digital platform. These portals provide comprehensive information on suppliers, including profiles, certifications, pricing, and past performance. Organizations can float requests for quotations (RFQs), tenders, or proposals and receive competitive bids instantly. Supplier portals save time, reduce administrative work, and increase transparency in vendor selection. They also enable organizations to maintain a pool of pre-qualified suppliers, ensuring reliability and compliance. With easy comparison and evaluation features, supplier portals serve as a dependable source for identifying the right supplier and enhancing procurement efficiency.

• E-Auction Platforms

E-auction platforms are widely used sources of e-sourcing, where buyers invite suppliers to participate in competitive bidding. These auctions may be reverse, forward, or Dutch depending on procurement needs. The dynamic bidding environment helps organizations secure the best possible prices while ensuring fairness and transparency. E-auction platforms allow real-time price discovery, encourage healthy competition among suppliers, and create opportunities for cost savings. Additionally, they reduce negotiation time as bidding is automated and rules-driven. E-auctions provide valuable analytics to evaluate supplier competitiveness and long-term suitability. This method has become a trusted e-sourcing tool for both small and large organizations seeking optimal procurement outcomes.

• Industry Marketplaces

Industry-specific marketplaces serve as a critical source of e-sourcing by aggregating products and suppliers tailored to specific sectors, such as healthcare, construction, or IT. These marketplaces simplify sourcing by offering a wide range of items and suppliers in one domain-focused platform. Buyers benefit from curated vendor lists, quality checks, and product standardization aligned with industry needs. Marketplaces often provide additional services like price benchmarking, supplier rating systems, and compliance verification. By streamlining vendor discovery and enabling efficient procurement transactions, industry marketplaces reduce risks and enhance decision-making. They are especially useful for specialized purchases where sector expertise and compliance are crucial.

• Supplier Networks and Databases

Global supplier networks and databases form another source of e-sourcing by providing centralized directories of verified suppliers. These databases give procurement professionals access to a wide range of vendors, product categories, and geographic locations. Organizations can filter suppliers based on factors like pricing, certifications, delivery capabilities, and compliance standards. Supplier networks often integrate with e-procurement systems, enabling seamless communication and sourcing efficiency. They also provide valuable insights into supplier performance history and market reputation. This helps reduce risks, foster informed decision-making, and ensure reliable sourcing. By tapping into these networks, organizations can expand supplier options while maintaining cost and quality control.

• Request for Proposal (RFP) Platforms

RFP platforms provide a structured method of sourcing by allowing organizations to create and distribute detailed procurement requirements digitally. Suppliers respond with proposals that include technical specifications, pricing, delivery timelines, and value-added services. These platforms make it easy to compare proposals side by side, ensuring fairness and informed decision-making. Automated scoring systems and evaluation tools enhance transparency and efficiency. RFP platforms also support compliance by documenting the entire sourcing process for audit purposes. As a source of e-sourcing, RFP platforms improve communication, encourage competitive offers, and enable organizations to secure the best suppliers who align with their strategic goals.

E-Payment Technologies

E-payment technologies automate the financial settlement process between buyers and suppliers, replacing traditional paper-based invoices and manual payments. These systems facilitate secure, fast, and transparent transactions through electronic methods such as online banking, digital wallets, Automated Clearing House (ACH) transfers, and integrated ERP solutions. E-payment systems improve efficiency by reducing payment cycle times, lowering transaction costs, and minimizing errors caused by manual data entry. They provide real-time tracking of payments, ensuring suppliers are paid promptly, which strengthens supplier relationships and enhances trust. Furthermore, e-payment technologies enhance financial control by offering detailed audit trails, fraud prevention measures, and compliance with taxation or regulatory requirements. Integration with e-invoicing systems ensures accuracy and prevents duplicate or delayed payments. By reducing paperwork and administrative overheads, e-payment technologies support cash flow management, optimize working capital, and create a more agile and reliable procurement process in today’s digital economy.

Source of E-Payment Technologies:

• Online Banking Platforms

Online banking platforms are one of the earliest and most reliable sources of e-payment technologies. They allow organizations and individuals to transfer funds electronically through NEFT, RTGS, IMPS, or direct bank-to-bank transfers. These platforms are secure, regulated by financial authorities, and widely accepted. They offer features such as transaction tracking, automated reconciliation, and instant notifications, which improve transparency and efficiency in payments. Businesses often integrate online banking with ERP or procurement systems for streamlined operations. The key advantage of this source is its high level of trust, compliance with banking standards, and availability for both domestic and international transactions, making it a fundamental e-payment option.

• Payment Gateways

Payment gateways are central to modern e-commerce and procurement systems as they facilitate secure online transactions between buyers and suppliers. Acting as intermediaries, they authenticate customer details, encrypt payment information, and process transactions in real time. Gateways like PayPal, Stripe, or Razorpay support multiple payment modes such as debit/credit cards, digital wallets, and UPI. They reduce fraud risks through advanced security measures like tokenization and two-factor authentication. Businesses benefit from instant settlements, multi-currency support, and detailed transaction reports. For procurement, integrating payment gateways ensures smooth vendor payments, enhances customer experience, and accelerates cash flow cycles, making them a key source of e-payment technologies.

• Mobile Wallets

Mobile wallets, such as Google Pay, Paytm, or Apple Pay, have emerged as convenient sources of e-payment technologies. They allow users to store funds digitally and make instant payments via smartphones, QR codes, or NFC technology. For businesses, mobile wallets simplify supplier and customer transactions by reducing dependency on physical cash and cards. They often include features such as cashback offers, loyalty rewards, and bill-splitting options, enhancing user engagement. Mobile wallets are especially useful in markets with a high penetration of mobile devices, enabling quick adoption. With strong encryption and biometric verification, they ensure secure transactions while delivering speed and flexibility in payments.

• Blockchain-Based Payment Systems

Blockchain-based payment systems represent an innovative and secure source of e-payment technologies. Using decentralized ledgers, these systems eliminate intermediaries, enabling peer-to-peer transactions with transparency and immutability. Cryptocurrencies like Bitcoin and Ethereum are well-known examples, but blockchain also supports stablecoins and enterprise payment solutions. Benefits include faster cross-border payments, reduced transaction costs, and improved security against fraud. For procurement, blockchain ensures traceability of payments, integrates with smart contracts, and fosters trust between buyers and suppliers. Although regulatory challenges exist, blockchain payments are gaining momentum in industries requiring high transparency and global operations, making them a disruptive and futuristic source of e-payment.

• UPI and Instant Payment Systems

Unified Payments Interface (UPI) in India and similar instant payment systems worldwide are transforming e-payment technologies. These systems enable real-time fund transfers directly between bank accounts using mobile apps with minimal transaction costs. They support features like QR code payments, peer-to-peer transfers, and integration with e-commerce platforms. For businesses, UPI systems provide faster settlements, reduced dependency on cash, and seamless integration with procurement workflows. Instant payment systems also promote financial inclusion by simplifying transactions for small businesses and consumers. With strong security protocols and government backing, UPI and similar platforms have become reliable, scalable, and cost-effective sources of e-payment technologies.