E-procurement helps companies cut costs and increase productivity by implementing automation in purchase process. This automation reduces overheads and wastages that usually occur in traditional purchases. In spite of the slowing global economy, more and more companies are awakening to the benefits of automation. Numerous software companies cater to the procurement needs by providing quality e-procurement services. A good software managing online purchasing handles all aspects of the purchase process, ranging from the requisition to the arrival of goods. Standard e-procurement software features RFQ (Request For Quotation), automatic bidding and automated negotiation tools.

There are many e-procurement service providers. The service provider generally takes care of the implementation and management of the e-procurement system. It needs great expertise and a sound knowledge of the company