EU Promotes eTrading to Cut Costs

If you are involved in procurement in a company that deals with the private sector, or you are in the private sector itself, the European Commission may just have given you a very good reason to get to grips with eTrading…

The Commission has decided that, by mid-2014, all central government bodies will have to carry out procurement electronically. This includes posting all contract opportunities online, making all tender documents available, enabling electronic submission of bids and making all communications digital!

In the case of the wider public sector, the first elements need to be in place by the same date, but they have until mid-2016 to implement the electronic communication. And by ‘electronic communication’ they don’t simply mean exchanging PDFs by email; they mean exchanging electronic documents directly between the back office systems of both buyers and vendors.

The reason for this is very simple; the EU commissioners have calculated that eTrading could cut €100 billion from the €2 trillion currently spent across the EU. The same reasoning that has led hundreds of companies to adopt eTrading without being driven to it through legislation.

The fact is that managing and maintaining supplier and sub-contractor information in the traditional way is both time-consuming and expensive. The same is true of manually processing trading documents such as purchase orders and invoices.

With eTrading the whole process is automated, saving time, cutting out waste and providing tighter control of costs throughout the supply chain. And the great thing is that everyone in the supply chain benefits, not just the buyer. Consequently, this EU initiative has the potential to save money for those who sell to the public sector as well.

eTrading is simple to implement with a relatively small investment that typically pays for itself within a few months. It makes sense to get ahead of the crowd and put eTrading in place, so contact us now to find out how you can get involved for free!

About Tim Cole

Described by Construction News and Construction Manager as "the construction industry's e-Envoy", Tim has worked as the Community Manager for CITE (Construction Industry Trading Electronically) since its formation in 1995.
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