E-Procurement in Construction Industry

Procurement in Construction industry depends largely on accurate planning and upgrading the plans at the right time to suit the ongoing and dynamic demands of construction projects. Right planning, management, control and allocation of funds and resources to procure construction goods & services are key to successful project deliveries. However, procurement in construction industry does not come without its own set of challenges and unique complexities that lead to project failures.

Most of the construction projects fail or run into delayed completion of projects due to difficulties in coordination efforts required for material procurement. By large, contractors deal with this issue by importing all required materials onsite with overall project view.

Typically, the project manager is responsible for the construction procurement process and needs to ensure tight control and management around following key areas:

  • Define project requirements.
  • Solicit bids for and select services.
  • Buy or lease supplies and equipment.
  • Contracts review and management, budget track and project schedules.
  • Issue resolutions and risk management.

The key to successful construction procurement and project delivery rests on using the right startegy, methods, suppliers and technology to ensure materials and services are qualitative and available as per the project needs and estimates.

The procurement in construction industry and their execution has to be effectively tracked, monitored and reviewed to ensure optimal efficiency and cost-savings. Ensuring proper utilization of resources and maximize return on investment is the key and most of the construction companies fail to implement proper cost reduction measures to bring down the cost to a justifiable level.

Some of the key areas that procurement in construction companies industry can be optimized for companies to stay productive, efficient and maximize profits to achieve desirable project delivery commitments include:

1. Spend Visibility

Most construction companies have limited or opaque spend overview across the business or group. Faciliating transparency and spend optimization requires consolidating information across multiple business stakeholder entities, technology systems such as ERPs and data sources is critical to success.

Therefore, it is important to have a spend management solution built-in the procurement management strategy and system to ensure procurement and business stakeholders have the right data at the right time to make informed and correct decisions.

ELIT Procure-to-pay (P2P) Cloud offers spend analytics dashboard to ensure optimal cost efficiencies and savings. 

2. Huge volumes of data to Process

When looking to improve procurement and supply chain management for the construction industry, businesses need to make sense of that data and information available internally and externally to determine the success of projects. Timely inputs, decisions and actionable outcomes are needed to control to stay relevant and on top of the competitive landscape. A robust, scalable and effective purchasing software helps with these outcomes.

ELIT helps by:

  • Seamlessly integrate with existing ERPs and third-party systems
  • Ensure data creep is effectively managed and right decisions on procurement processes can be taken by the right people at right time with minimal effort

3. Effective Supplier Management and Risk Mitigation

Lack of actionable and access to timely responsive suppliers are at the core of construction procurement failures. This can be mitigated by creating robust supplier network and charting out effective channels to communicate real-time to drive optimal responsiveness and critical supply sourcing pipeline.

ELIT eSupplier module helps with:

  • Pre-Qualification and rapid on-board suppliers
  • Migrate existing supplier database
  • Proactively manage supplier relationships
  • Ensure regulatory compliance
  • continuously track and rate supplier performance metrics to improve and optimize construction procurement costs and timeframes.

ELIT, through is comprehensive solution suite, provides the channel mix for an effective procurement lifecycle with:

  • Real-time internal and external collaborations
  • Performance metrics and Analytic dashboards
  • Contract and regulatory compliance tracking

ELIT, a robust, scalable and seamless purchasing software; helps address some of the unique challenges in construction procurement in following key areas:


  • Operational Transformation
  • Strategic Sourcing & Supplier Management
  • Category Management
  • Supplier & Procurement Analytics


  • Supply Chain Transparency
  • Supplier Collaborations
  • Logistics Management
  • Real-time communications.


  • Spend Analytics & Cost Reduction
  • Category Utilization
  • Supplier Performances
  • KPI and Metrics Optimization

ELIT identifies three key areas where successful construction procurement functions strike the right balance between short-term cost reduction and long-term optimization to drive efficiency and profitability.

Supplier Collaborations & EngagementsGain better insights into supplier capabilities, cost structures and fitment to ensure transparency and anticipate demand fulfilment
Cost EfficiencyInvolve in early-stage supply planning to reduce procurement costs and drive efficient spend programs.
Business EffectivenessMake smart and justifiable purchasing decisions based on supplier performance criteria and categorization optimization without having to spend much time on the process.

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