Middle East can set its own standards in e-procurement, according to CEO of Tejari

The growth of online procurement in the Middle East matches the development of top brands and corporations from non-Western economies, Hijazi said, allowing emerging economies to be counted in their own right.

Over $1.3 billion worth of business was transacted through Tejari in 2006, with government and private sector both aggressively adopting e-procurement. The government sector accounted for 60% of the value of transactions through Tejari, with 40% from the private sector.

The government sector has been one of the leaders in adopting e-procurement in the Middle East, with more than 33,000 government requests for quotation (RFQs) and auctions carried out through Tejari in the period from 2004-2006. Recent major government transactions through the Tejari Marketplace include the largest-ever auction on Tejari -- the UAE Road Transport Authorities purchase of new buses worth Dhs 2 billion -- and major deals for Dubai Department of Nationalization and Residency, and Dubai Transport.

The private sector has also contributed immensely to the uptake of e-procurement, with the majority of Tejari's members being private companies, which account for around one third of the value of transactions through Tejari.

"Tejari's clients are embracing e-procurement more aggressively than ever," Hijazi noted. "Our trading partner base increased by 40% in 2006, and trading volumes grew by 33%, as public and private sector organizations harness the power of online procurement to simplify processes, to access new markets and to create greater transparency into their procurement processes."

Hijazi was addressing the MENA Purchasing Summit, held in Dubai this week. Tejari is a gold sponsor of the event, which brings together procurement decision-makers and marketplaces to discuss the latest trends and issues facing the sector.

Tejari has experienced a surge in demand for its Tejari Expert consultancy service, as companies look to develop their e-procurement systems and improve the return they get from online purchasing through services including spend through supplier management, process engineering and data cleansing initiatives.

"Often what Tejari sees are companies which are using some modules of an e-procurement system, but they do not adopt full e-procurement for all processes. These organizations may face hurdles because their suppliers are not adequately prepared for e-procurement, their own internal processes are not defined properly, or because they do not have the required level of insight into their spending patterns to really understand where they could make improvements. Tejari Expert provides the expertise to help organizations to overcome these hurdles,"

Hijazi said.

Tejari is working with major customers in the oil and gas, construction, aviation and hospitality sectors to develop extensive procurement strategies that match the specific needs and patterns of each individual business. Tejari Expert is offering a wide range of services, to help companies understand where e-procurement can benefit their purchasing and enable them to gain the maximum benefit of e-procurement solutions.

"From all our market indications, the future of e-procurement looks very promising. It is a natural development for emerging markets looking to enter the world's stage, that they adopt leading-edge professional practices, and the standards that we see today from procurement organizations in the Middle East prove that the region can chart its own course," Hijazi said.