eProcurement, short for electronic procurement, is the digitization and automation of the procurement process using technology and online platforms. It involves the electronic sourcing, ordering, and management of goods and services. eProcurement systems facilitate tasks such as online supplier registration, electronic bidding, purchase order generation, invoice processing, and vendor management.

These systems streamline procurement operations, reduce paperwork, enhance transparency, and improve efficiency. They enable organizations to automate routine tasks, increase procurement accuracy, track spending, enforce compliance, and analyze data for better decision-making. eProcurement enhances collaboration between buyers and suppliers, optimizes supply chain processes, and ultimately helps organizations achieve cost savings and operational excellence.

The Buy-Sell model is a variant of the Centralised Procurement model. Under this, a central Procurement company (a ‘ProCo’) is formed within the Group and buys goods to sell them on to the operating companies (often at a profit). Under this model, Procurement is both the budget holder and procurer and has total control of inbound supply.

In the context of procurement, a Center of Excellence (CoE) refers to a specialized team or group within an organization that possesses advanced knowledge, expertise, and best practices in procurement. The CoE serves as a central hub for developing and promoting procurement strategies, processes, and standards. It provides guidance, training, and support to procurement professionals across the organization, ensuring consistent and effective procurement practices.

The CoE focuses on continuous improvement, innovation, and driving procurement excellence, enabling the organization to achieve cost savings, supplier management, risk mitigation, and overall procurement optimization.

Center-led procurement is an approach where procurement activities are primarily managed and coordinated by a centralized procurement function or team within an organization. This central team takes the lead in formulating procurement strategies, policies, and guidelines. They oversee and support procurement activities across different departments or business units, ensuring consistency, compliance, and alignment with organizational goals.

Center-led procurement promotes standardization, leverages economies of scale, and enables strategic sourcing initiatives. It focuses on achieving cost savings, supplier management, risk mitigation, and streamlining procurement processes through centralized control, collaboration, and expertise.

Centralized procurement is a strategic approach that consolidates an organization's purchasing decisions and transactions into a single central department or team. This centralized group is responsible for acquiring goods and services on behalf of the entire organization instead of leaving the process to individual departments or employees. The primary goal of centralized procurement is to enhance procurement outcomes, streamline the purchasing process, and reduce costs through standardized procedures, increased purchasing power, and improved supplier relationships.

Delegation of Authority in procurement refers to the process of assigning decision-making power and responsibility to individuals or roles within an organization. It involves authorizing specific individuals or positions to make procurement-related decisions, such as approving purchase requisitions, negotiating contracts, or selecting suppliers. Delegation of Authority streamlines the procurement process, enhances efficiency, and ensures that appropriate individuals have the necessary authority to carry out procurement activities within defined limits and guidelines.

Direct procurement refers to the acquisition of goods, materials, and services that are directly related to the production of a company's end product. These are typically items that are used in the manufacturing process, such as raw materials, components, and sub-assemblies. Direct procurement is a critical aspect of supply chain management and is important to ensure that a company can produce its products efficiently and effectively. Effective management of direct procurement can help a company control costs, improve quality, and increase efficiency in its manufacturing process.

Federated procurement refers to a decentralized approach to procurement where multiple entities within an organization, such as departments, subsidiaries, or regions, maintain their own procurement functions and autonomy. While central guidelines and strategies may exist, each entity has its own procurement processes, contracts, and supplier relationships. Federated procurement allows for localized decision-making and flexibility to meet specific needs, but it can also lead to fragmentation and missed opportunities for cost savings and synergies.

Global Business Services (GBS) refers to a centralized operational model within an internal business organization where shared services are consolidated and provided to multiple business units or functions across different geographical locations. GBS aims to streamline and optimize common business processes such as finance, HR, IT, procurement, and customer service by leveraging standardized practices, technology, and economies of scale.

It involves centralizing resources, expertise, and systems to deliver services efficiently, improve quality, and drive cost savings. GBS enables collaboration, standardization, and harmonization of processes, enhancing operational effectiveness and enabling the organization to better support its global operations.