How can e-procurement foster innovation and collaboration among stakeholders in developing countries?

1 The potential of e-procurement

E-procurement can create a more conducive environment for innovation and collaboration in developing countries by providing access to information, markets, and networks. For example, e-procurement can help public sector buyers to identify and evaluate new and diverse suppliers, as well as to monitor and manage their performance. E-procurement can also help private sector suppliers to access new and larger markets, as well as to learn from and partner with other suppliers and buyers. E-procurement can also facilitate the exchange of knowledge, ideas, and feedback among stakeholders, which can stimulate innovation and learning.

2 The challenges of e-procurement

However, e-procurement also faces some challenges in developing countries, such as the lack of infrastructure, skills, and trust. For example, e-procurement requires reliable and secure internet connectivity, which may not be available or affordable in some areas. E-procurement also requires digital literacy and competence, which may not be widespread or adequate among buyers and suppliers. E-procurement also requires trust and confidence, which may not be easy to establish or maintain in contexts where corruption, fraud, and collusion are prevalent. Therefore, e-procurement needs to be accompanied by appropriate policies, regulations, and standards, as well as by capacity building and awareness raising initiatives.

3 The opportunities of e-procurement

Despite these challenges, e-procurement also offers some opportunities for innovation and collaboration in developing countries, such as the use of data, analytics, and artificial intelligence. For example, e-procurement can generate and leverage large amounts of data, which can be analyzed and used to inform decision making, improve performance, and identify opportunities. E-procurement can also employ artificial intelligence and machine learning, which can automate and optimize some of the procurement tasks, such as sourcing, bidding, and contracting. E-procurement can also enable and support new and emerging business models, such as crowdsourcing, co-creation, and circular economy, which can enhance value creation and sustainability.

4 The examples of e-procurement

To illustrate some of the ways that e-procurement can foster innovation and collaboration in developing countries, we can look at some of the examples and initiatives that have been implemented or piloted in different regions and sectors. For example, in Africa, e-procurement platforms such as TradeNet, Soko, and AgriBazaar have connected farmers and traders to local and regional markets, as well as to information, financing, and logistics services. In Asia, e-procurement platforms such as GeM, e-GP, and e-Marketplace have enabled public sector buyers to access a wider range of suppliers, as well as to monitor and evaluate their performance and compliance. In Latin America, e-procurement platforms such as CompraNet, ChileCompra, and MercadoPublico have facilitated the participation and collaboration of small and medium enterprises, as well as of civil society and academia, in the public procurement process.