Assignment 6- Steve’s Bikes Online Ordering - HK

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School

Mount Royal University *

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Course

20006

Subject

Information Systems

Date

Dec 6, 2023

Type

docx

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2

Uploaded by hkhan_88

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E-Procurement — also known as: supplier exchange, is a business-to-business process that refers to transactions between businesses or business units. Global supply chains are dependent on sophisticated e-procurement systems to keep them functional and optimized. In the current scenario, Steve can consolidate his finances by utilizing centralized e-procurement software to acquire services and goods from multiple vendors or suppliers. E-procurement is a simple and yet innovative electronic technology and it automates the spending process within an organization which is the need of the hour for Steve’s business. Steve has multiple personnel within his organization who are ordering parts from multiple supplier according to their need without informing their co-worker what parts have been ordered. Through the e-procurement software, Steve will be able to catch and avoid unwanted spending before it occurs instead of waiting for a report after the money has already been spent to acquired services from multiple suppliers. Under e-procurement through the applications all the invoices or purchase orders will be saved in the system and accessible from all workstations and everyone will be able to access the information anytime. This will help Steve cut down inventory carrying costs by avoiding the overstocking of the inventory in the backroom. Another benefit with the visibility of purchasing process will assist with the accountability of the staff and prevent unethical or poor spending habits of the past and will encourage fiscal responsibility among all the staff members. E-procurement will aid in reduction of paper-work and human input required to carry out tasks will be eliminated which as well can turn to be cost-effective for the business and amount of re-work required to correct human-errors or effort required to report invoices and purchase orders for budgeting will help save time as the reporting will be automated through the software. However, there are few drawbacks of with the application of the e-procurement system as well which are following: Email overload. Compatibility of software. The amount of time required to train staff about the eProcurement system. Accessibility to the software. Incompatible equipment. 2) What other things should Steve consider before implementing e-Procurement? Steve should consider above stated drawbacks of implementing an e-Procurement system for his business and build in mechanisms and strategies which work best for his business to keep his suppliers and employees on board with the idea of implementing e-procurement. Steve could face resistance from his employees as some of them might not be in favour of digitalizing the system and will avoid the implemented e-procurement. In order to mitigate this Steve could offer his Staff with incentives such as bonuses at the end of the year for employees completing a target number of orders through e-procurement. Steve needs to consider the cost of training the staff for them to be comfortable with new system and their willingness to stick with it and not go back to old spending habits because of them not being
comfortable with the new technology. This will be an up-front investment that has high yielding ROI in the long run. Loss of supplier of the services or goods should be considered by Steve as well because of their unwillingness to share data over the e-procurement system. At the same time, some of the suppliers might not be willing to digitalize their purchasing process within the e-procurement system, which can cause Steve to lose some of the crucial business partners. In order to mitigate this Steve could consider offering incentives for his suppliers such as long-term contracts for suppliers that will come on-board with the current e-procurement system.
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