E-procurement is a business to business (B2B) process of procuring and selling goods and services over the internet. It is different from e-commerce in the way that it is a closed system allowing only a limited number of registered users to participate.
e-procurement creates a line of communication between a company and a supplier by creating a direct link facilitating interactions such as bids, purchase orders, etc.
e-tender is used as a platform for advertising these procurement's in order to conduct business online. A digital signature certificate licensed under the Information Technology Act is crucial for carrying out an e-tender process.
A class 3 type of digital signature certificate is required for e-tendering which provides the highest level of security for tendering applications. Validity of a digital signature can vary for a period of 1, 2 or 3 years.
How does a Digital Signature work?
While registering for a digital signature certificate, a private and public key are created using the same algorithm by controller of Certifying Authority (CA). The private key is shared with the respective individual/party only while the public key is made universal.
The private key is a secure digital key and is used to decrypt one’s signature using the public key. A digital signature of a person can only be authorized when the private key of the user successfully decrypts the public key.
Class of Digital Signature Certificate (DSC) required for e-tendering
As mentioned earlier, a Class 3 digital signature certificate is required for the e-tendering process. It is a must for Vendors who wish to participate in e-auctions, online tenders to have this class of certificate.
Class 3 DSC can be further subdivided into 2 categories:
Class 3A- This digital certificate is issued to individuals.
Class 3B- Issued to organisations who use this certificate to carrying out signing of documents, e-commerce and online based transactions. The certificate requires a confirmation of the existence of the firm that is applying for this certificate.
Advantages of e-tendering
Instead of filing for a tender using paper documents, information can be uploaded and stored online which can also be used for future tenders.
Money can be saved by preventing duplicate spending and saving costs associated with paper based systems.
Increase in productivity as e-procurement is less time consuming than traditional procurement. Having your past records stored electronically, re-applying for a tender becomes easier.
Electronic purchasing makes it easier to carry out a purchase when there are various departments making procurement decisions.
Online transaction aids in speedy e-procurement process. The cycle time for procurement speeds up among suppliers enabling business to be conducted in a short amount of time.
Applying for a Class 3 Certificate
Visit the filinglounge website and click the Digital Signature option
After submission, the DSC registration experts will process your application
The DSC will be sent to your registered email-id within 2 working hours.
In order to file for a digital signature certificate you can log-onto our website filinglounge.com. We are ISO Certified Private Consultants who provide registration for Class 2, Class 3 and DGFT digital signatures.
For any queries regarding digital signature you can post your query on the chat-bot available on our Home-page.