Procurement goes online. Why Uzbek companies are switching to electronic tenders

Procurement is moving online. Why companies in Uzbekistan are choosing electronic tenders

Just a few years ago, procurement in private companies was often structured according to a familiar pattern: a manager searched for suppliers, requested commercial proposals via email and messengers, compiled prices into a spreadsheet, and submitted it to management for approval. Today, more and more companies are moving this process into an electronic format, where requests, supplier proposals, and selection results are gathered on a single platform.

The transition from manual work to electronic procurement is also gradually changing the very approach of businesses to finding suppliers. It is important for companies not only to reduce time and costs, but also to make the process more transparent and understandable for all participants.

The electronic format has already become customary for public procurement. Now, the private sector is actively adopting it — from industrial and construction enterprises to trading companies. We look into why businesses are switching to electronic tenders and what is changing in procurement.

Why is the old approach stopping to work?

Even in large companies, procurement often depends on individual employees. Requests arrive in Telegram, commercial proposals remain in emails, prices are compared manually, and the history of negotiations and agreements may be inaccessible to other employees. As a result, it can be difficult for a manager to reconstruct the entire supplier selection process and understand how well the proposed price matches the market.

A separate issue is the risk of conflicts of interest and abuse. If the circle of suppliers is limited and the selection criteria are not fixed in advance, it is more difficult for a company to control the validity of decisions and identify potential violations.

What does electronic procurement offer the buyer?

E-procurement, or electronic procurement management, transfers the main stages of the process into a single digital system. This allows a company to:

The potential economic effect of digitizing procurement is also noted by international organizations. In its 2012 strategy, the European Commission cited savings estimates in the range of 5–20% for buyers who switched to electronic procurement. At the same time, the result depends on the specific system and the conditions of its application.

In a 2026 publication, the World Bank also cites a savings range of 5–20% of procurement costs. In Tanzania, for example, the digitization of public procurement saved $12.5 million in printing and transport costs over two years.

These indicators relate primarily to public systems and do not mean that similar savings will automatically appear for any private company. The result depends on the volume of procurement, the number of suppliers, the organization of the process itself, and how fully the company utilizes the capabilities of the electronic system.

What does this change for suppliers?

For suppliers, the transition of business to online is a new market. Previously, getting to a large buyer was possible only through personal connections. Now, the requirements are published openly, and the one who offers the best conditions wins.

For companies accustomed to working mainly with public procurement, this provides an opportunity to expand their client base. The private sector constantly needs materials, equipment, construction work, logistics, IT, and professional services — and these purchases become an additional source of contracts.

How does it work on TenderGPT?

One of the services operating in the corporate electronic procurement market in Uzbekistan is TenderGPT.uz. According to the company, specialists with more than ten years of experience in procurement, including public procurement, are working on the project. The team uses this experience when organizing corporate tenders, searching for suppliers, and automating procurement processes.

According to TenderGPT.uz, about 100 biddings totaling around $20 million have already been conducted through the platform.

The buyer posts a procurement lot and determines the terms of the tender. Suppliers submit proposals through the system, after which the buyer can compare the terms and finalize the procurement results in a single digital space.

The platform can be used in different formats — depending on the tasks and requirements of the company. Among them:

For suppliers, the platform acts as an additional channel for finding corporate orders and submitting proposals for goods, works, and services. Participation is possible without making a deposit.

At the same time, a single company can use the system in both roles — participating in others' procurement as a supplier and simultaneously conducting its own tenders, for example, to find contractors or purchase necessary services.

What's next?

The TenderGPT team is also developing an AI solution for buyers and suppliers. It is designed to automate some of the routine tasks — processing procurement documentation, preparing for deals, and searching for suitable proposals. The release of the solution is planned for 2027.

The corporate electronic procurement market in Uzbekistan is still in its formative stage. As it develops, companies gain the opportunity to transfer more procurement processes into digital format, expand the circle of potential suppliers, and use accumulated data for cost control and planning.

TenderGPT invites companies planning to digitize their procurement and suppliers interested in new orders to cooperate. You can start with a specific task — post your first lot, find a suitable tender, or discuss the implementation of a corporate procurement system.

More details about the platform and current procurements can be found on the website TenderGPT.uz. For questions regarding connection, implementation, and cooperation, call +998 90 988 50 04.