Advantages And Disadvantages Of Procurement

Electronic business, or e-business or "electronic commerce"(55) has increased exponentially because so many businesses are on digital networks. Major business transactions are completed on the enterprise. Digital networking is transforming businesses relationships with the companies customer, their employees and relationships with suppliers and partners in business. E business technology is also improving the way business is done in the government. The government uses the Internet to enable and increase business

Through e-Procurement system we can improve redundancies in the business process and operations, gain in productivity by upgrading procurement processes. Cost savings by reducing processing time, rationalization of a large number of BAL suppliers and maintaining relationship with Key Suppliers.

Procurement by public entities is guided by primary law principles of transparency, equal treatment and non-discrimination, procurement laws sets up an extensive legal framework regarding the procurement of work, supply and service contracts. There are two main reasons for the use of specific procedures i.e. why contracting authorities do not just negotiate or simply buy from the closest supplier. First, it provides for more public accountability and therefore less cases of corruption practices. Additionally, tendering procedures aim to ensure the best value for money by making it necessary for suppliers to act highly competitive. As a result, market mechanisms will help in facilitating the best possible practices. In situations where market mechanisms are not effective, tender procedures might lose their effectiveness as well. If for example there is lack of competition due to certain complexities or as a result of lower bidder interest, negotiations with just one or two suppliers may be the most efficient manner to handle the process. Therefore, we discuss the inherent advantages and disadvantages of sealed bidding and contracting by negotiation as procedural frameworks for tendering.

E-procurement has had an increasingly important role in business-to-business(B2B) commerce. Web-enabled B2B e-commerce enhances inter-organizational coordination resulting in transaction cost savings and competitive sourcing opportunities for the buyer organization. E-business has radically altered the ways in which firms interact with their suppliers(Phillips 2003). Continued improvements in Internet technology connectivity provide an opportunity to make procurement for goods and services more transparent and efficient. Six forms of e-procurement applications

Functions as the team lead and in the submission of purchase goods and services; building maintenance, building access in a timely to ensure the process of procurement contracts and requisitions needs are met

Following my previous letter on stage 1 which is briefly about the design project, roles of architects and involving consultants, next, I will continue with stage 2,the Procurement Routes and Contracts,as stated above.

Negotiations are intended to strike a deal for the benefit of both parties, but it cannot happen with one of the above situations and legal activities can be taken with such shortcomings or corrupt practices.

Many organizations industriously look for the opportunity to gain the competitive advantages in their industries. One of the opportunities that frequently used by the organization is the implementation of e-commerce. Thus, the e-commerce and the online sale transaction become popular in each industry. E-commerce provides many benefits, such as the saving of shopping time, the cost savings, convenience, and free from geographical constraints.

Healthcare systems have the potential to modernize our healthcare industry on a global scale with the use of health information technologies. These technologies provide a way of delivering safe, cost-efficient, and quality healthcare to the consumer. More and more healthcare organizations around the world are realizing the potential of these technologies to evolve the way care is delivered. However, IT systems are not universally implemented because of various fundamental factors such as costs, workflow disruptions, and security concerns to name a few. (Ajami 2013)

All projects involve the need to determine whether the project work will be done in-house, external to the organization (outsourced), or a combination of the two. This is called “make-or-buy analysis” and is an essential part of project planning, as well as a tool/technique integral to procurement planning

Although e-commerce is one of the most prevalent to dealing business of this generation, there are a lot of advantages to business, customer and society. however, there are still some areas of concern services will need to be processed.

The need for innovation, dexterity and progressive ideas will lead to a shift in the creation of value in new areas. An emphasis will be placed on the development of improved processes, with a focus on core competencies and market differentiation. Outsourcing will serve as a mechanism for allocating risks and costs associated with specific efforts. This entails the creation of strategic mechanisms and the construction of value networks to increase organizational flexibility and become market leaders, allowing enterprises to continuously and smoothly use the best talents, opportunities and best

Additional companies are managing spend categories that now cover the global economy. Procurement experts are hence taxed with having to cope with many spends projects within regions where reliable supplier choices are restricted. This can make problems logistically and needs the procurement personnel to be better skilled plus suppler.

Pursuit for competitive advantage is vital for the survival of any business organization’s supply chain. Businesses are feeling the difficulty to improve procurement and sourcing efficiency. The value that can be achieved through successful procurement practices is often a lot harder to achieve than many companies actually realize. If a company expects to grow and survive, it constantly needs to add value. Procurement is one area that has become a critical area of focus to create a more competitive and efficient supply chain. In the past, procurement was seen as insignificant to other areas of an organization. However, implementing cross-functional teams to continually review suppliers ensures that an organization benefits from the best

This is important especially if the customer does not have an already established relationship with suppliers. The search should be limited to the area of focus that is the area in which the customer needs product or services. This can be done through various way such as catalogues, advertisements (expression of interest), direct sourcing among others