Procurement has gained a whole new dimension over the years. In this paper, the theoretical part explains the traditional procurement together with the principles, purpose, organization and policy. Through the process of digitalization, procurement has been transferred from the traditional paper form to the electronic form of business. In the electronic form of the procurement process it is much easier to find a suitable supplier for a particular service or goods. A large number of tenders are available to suppliers over the Internet, and therefore companies are in a better position to negotiate prices with suppliers, as competition is present globally. The paper also presents electronic public procurement used for the procurement of goods and services in the public sector in the Republic of Croatia which is used by all stateowned enterprises. The e-procurement tools used on a daily basis in the procurement business are also explained. An electronic advertisement is a tool used for electronic public procurement and through it companies and suppliers conduct business in the form of tenders and offers for certain goods or services. Electronic reverse auctions are a very common procurement principle nowadays. They are held in such a way that suppliers make bids to companies based on previously set auction conditions. The software used for the purchasing business of private companies is also explained. Finally, the process of electronic procurement is presented through Jupiter software.