Benefits And Challenges Of E Procurement

University, Adapted by Faculty of Business- Athabasca. Electronic Commerce for Managers. Pearson Learning Solutions, 2014. VitalBook file.

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.

The author Remko van Hoek is Professor in Supply Chain Management at Cranfield School of Management, UK and Head of the Corporate Executive Board, Washington DC, USA. Keywords Internet, Supply chain management, Electronic commerce Abstract There is rapidly growing interest in e-businesses. Its impact on supply chains is currently covered in about 150 papers and articles and the number is growing at the speed of computing power. Unfortunately, most of the published work, in research and practice, is biased to e-commerce and sales and marketing. The supply chain dimension of e-business is largely neglected and managed poorly, while basic logistics mal-performance is currently hampering turnover and revenues of e-commerce applications severely. If basic operational performance is not even assured, more advanced approaches of e-business will not take off, simply because there is inadequate support for the concepts in the physical domaine. Very often virtual integration is applied in an operational manner and in segments of the supply chain only, as opposed to an alternative approach developed here, that of strategic and integral supply chain involvement. This research note calls for an effort to make the supply chain dimension of e-business a reality and suggests practical approaches (create an e-supply chain which is a supply chain that can fulfill orders and assure supply

It is quite challenging to discuss about procurement management without stating the importance of its strategies. There are four main basic procurement strategies that serve different functions within a procurement management. To begin with, a “Partnership” strategy focuses mainly on constructing mutual commitment in long term relationship with suppliers. While a “Secure Supply” strategy aims to secure short and long term supply while reducing risk from suppliers. In addition, a “Category Management and E-Procurement solutions” serves as a tool to reduce logistic complexity, improve operational efficiency, and attempts to reduce the number of suppliers. Lastly, a “Competive Bidding” strategy emphasizes on obtaining the “Best Deal” for short term transactions with suppliers.(van weele) Each of these four strategies involves a unique purchasing methodology, which implies that the complexity is embedded in an individual strategic implication. Therefore, it requires different tools to accomplish the specific strategical characteristics. A business entity may need to support and execute procurement decisions with other strategic apparatus with analytical methods, including market analysis, uncertainty analysis, price forecasting, supplier relationship and along with others.(Harvard)

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

Comparing to the option of upgrading the whole procurement system, my recommendation aligns with Russell Menere (National Procurement Manager of BAL)’s idea, which is to implement short term improvements based on current procurement system in

The continued advances in procurement and information technologies, have presented BAL an opportunity to build on initiatives put in place since 1999. The P-Card initiative has produced cost savings through the shortening of procurement process for non traceable generic goods, but new e-based initiatives must be sought to further stream line the bidding and contracting process.

Written Cases Study 4: Boeing Australia Limited: Assessing the Merits of Implementing a Sophisticated e-Procurement System

During 1998 the telecom market space was inefficient and fragmented because most buyers and suppliers uses traditional procurement process. The process requires the buyers and supplier to individually purchase the telecommunication equipment that are needed in expanding or increasing their performance level. The procurement decision making involves a range of technical staff, such as network administrators, and telecommunication engineers to executive management such as, Chief Executive Officers (CEO) and Chief Technology Officers (CTO) which cause the complexity over the process. The process become more complex as there is rapid change in telecommunications industry, where buyers find

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.

The current procurement framework perceives the significance of ‘transparency, competitiveness, fairness and the need to promote a sense of integrity in the system to secure best value for money’ . E-bidding was initially launched in the States of Kerala, Karnataka, Madhya Pradesh, Andhra Pradesh by Directorate General of Supplies and Disposal. After the success of e-bidding in the above States, e-bidding was launched even at the Central Government Level. In fact, a national program for opening e-bids was launched under National e-governance Plan for rate contracts. The above program was launched to promote electric technology in tendering. In addition to the above, the Central Vigilance Committee laid down e-procurement guidelines in 2009, in which a single platform for all procurement agencies was recommended.

Thomson is a French company, created in 1883, whose headquarters are in Issy les Moulineaux, near Paris. It is specialized in the conception and the manufacturing of digital images and videos systems. The company developed itself in the world to be present in different countries, such as Italy, India, China, Spain, USA, Belgium and UK.

Within the contents of this leaflet I will demonstrate how I use the internet for E-Procurement and Communication.

Procurement is a central service provided by a zealous team of executives. It functions at the interface between the organizations, the external supplier, marketplace and also the organizations’ operational processes (Knudsen D, 2003). This implies that the procurement processes and data have to be on the market for one or all actors within the supply chain to optimize the advantages of e-procurement. The applications that inform the e-procurement landscape are designed to alter the buying cycle, optimize pay, improve methods and progress, support bidding and tendering and facilitate more practical

The term e-procurement gained popularity around the year 2000. Emergence of the two competitors Ariba and Commerce One, companies that specialized in the support of electronic procurement for MRO products, changed the way indirect MRO spend used to be looked upon. Introduction of internet-based procurement applications prompted a change from a centrally organized procurement (central buying) department to ‘desktop procurement’ environment, where the employee in need of a product would initiate the purchase transaction electronically. With these two trends, ‘decentralized purchasing’ and ‘multi-vendor catalogues’, the conduit toward electronic support of the MRO buying process was paved. Thus, over the period, spend analysts have started observing carefully, to increase spend under management and implement better control over tail spend in order to reduce the amount of fulfilling formalities and time consumed in procuring these products.