The Electronic Procurement (E-Procurement) System and A Study on Government Procurement Processes in Bangladesh

Abstract

The way of contracting sellers or service providers for providing both goods and services via electronic means involving internet is termed as Electronic procurement. The aim of e-procurement is to dematerialize commercial transactions between businesses and their suppliers via digital solutions in order to optimize the procurement process. For a country, the procurement system is one of the dominating factors for the national economy and other significant functions of the government. In this paper, the concept of traditional procurement system and e-procurement system are analyzed theoretically from various dimensions. Significant components of a procurement system are explained with their functions and criteria. The causes for the preference of e-procurement over traditional procurement are also presented. This paper also includes an analytical study of the existing electronic procurement system of Bangladesh. Various functional components of the system are explained with their functioning criteria.  The whole working procedure of e-procurement system of Bangladesh is studied and presented as an e-procurement model in this paper.