Case Study Of E-Procurement In Philips Consumer Electronics

When Philips first began their business in 1892, their only product was the light bulb. Instead of diversifying, Philips main focus lay only with the light bulb and as a result, were able to specialise and create significant innovations in this department. As their products began to gain success and a strong reputation, sales increased dramatically and Philips’ research and development sector continued to grow. In fact, Philips became a leader in industrial research, an attribute that would continue to benefit them as the company continued its global leadership in the post-war era.

Kroger uses a number of ERP systems. The first major ERP system Kroger uses is the self-checkout systems. Kroger hired Fujitsu Transaction Solutions to be the sole strategic partner for these systems which are now implemented in most Kroger stores. The next ERP company is PurchasingNet-SQL who Kroger hired in 2000 to streamline its purchasing processes of new store equipment and store refurbishing projects. In few words PurchasingNet-SQL implements an eProcurement system. This system automates approvals and budgeting processes, sends e-mail updates, separates stock requisitions, tracks inventory levels in warehouses, and matches invoices to purchase orders and requisitions to ensure accurate accounting. This system is especially critical because of the numerous retail outlets that all need to be in contact with the single purchasing department. A third company that offers its services to Kroger is the Sterling Information Broker. Kroger is using Sterling to help become more cost-effective and efficient with its trading partners. Kroger with Sterling can exchange electronic documents with essential trading partners including customers, suppliers, freight carriers and financial institutions.

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.

ERP projects are most definitely expensive and risky, nevertheless despite these potential costs KEDA decided to embark on its ERP implementation project in hopes of obtaining a high return on investment. One of the factors that led to this decision was the fierce competition of global and local competitors. In an effort to retain its position within the industry and combat the threat of other businesses, KEDA needed to evolve. Specifically, through choosing a new ERP system, KETA hoped that this strategy would improve operations and become a productive advancement to the structure of the company. Since the Chinese government stopped their support and the MRP-II couldn’t manage the multiple system operations, they had to seek out a new alternative.

The benefits of enterprise-wide systems such as enterprise resource management (ERP), customer relationship management (CRM), and supply chain management (SCM) directly align with Riordan’s strategic direction. Proper implementation of these systems will add value to Riordan’s business model. However, enterprise-wide implementations are characterized by large investments and large time commitments. Therefore, the organization must evaluate which systems will help it achieve the majority of its goals, in a reasonable time frame. In doing so, decision-makers can determine if each system’s value is worth its costs and the order in which to invest in and implement each system.

MED-X, a Fortune 500 pharmaceutical company with headquarters in Houston, Texas with 54 plants and more than 40,000 employees world-wide, has undertaken a $2 million Ariba e-procurement project implementation. MED-X was spending $3 billion annually on indirect goods and services. It is estimated that implementation of the Ariba e-procurement system will save the company $200 million annually and also reduce spending, streamline the procurement process and expedite user adoption. An additional benefit of the project is going to be nationwide

Philips strives to make the world healthier and more sustainable through innovation. Their goal is to improve the lives of 3 billion people a year by 2025. They also want to create a high quality work

The task to find out more information on the enterprise resource planning systems (ERP) an integrated systems package has been assigned to Beutler. The company has looked at the strengths and weaknesses of seven ERP packages they have been presented. Due to the high risk of using a Big Bang Approach, a high-risk project it was vital that the

This paper will present Baderman Island’s enterprise technology solution, and attempt to explain how the presented enterprise-wide solution will create value for the organization’s e-commerce marketplace. In addition, this author will explain how Baderman Island’s prototyping efforts will aid in improving the new system development as well as identify the project’s activities involved implementing the new technology. Good start

When it comes to Philips I would definitely suggest differentiation among products lines. There is necessity to define what are the organizational core value products and the ones, which are not-core products. I would invest in R&D, because without it Philips is loosing its competitive advantage that was its strong point. There is also necessity to divide responsibilities between national organizations and product divisions. They have already decreased number of PD, which I perceive as a good move. In my opinion they should also invest in training, maybe team-building, something to increase the cooperation between managers from NO and PD.

system or upgrading the e-procurement portion to work with the systems that are already in

The arrival of Gerald Kleisterlee in 2001 brought organizational changes to Philips that is evident in the marketplace today. The new CEO restructured the company by outsourcing mobile phone production to CEC of China and the production of VCRs to Funai in Japan. This was followed by the outsourcing of TVs, CD players and components with simultaneous movement of remaining in-house production to countries like China, Poland and Mexico, who had lower costs. He also sold off several businesses, including the core semi-conductor business. What evolved was Kleisterlee’s vision for a new Philips – a lifestyle company centered on health and well-being – which organized around healthcare, lighting and consumer lifestyle.

Perceived benefits are referred to as the anticipated advantages of an e-procurement system that can be provided to an organization. Among the existing studies are those on the benefits of e-procurement, for example [69], [70], [71]. Aggregate findings of these researches shown that there are many benefits of e-procurement in construction in relation to costs and time savings; improved quality of construction products and services, client and user satisfaction, efficiency and effectiveness in the management of construction projects. Organizations are likely to adopt an e-procurement system if they believe it will yield positive or beneficial results.

Philips has thrived on its technological prowess, which is a result of their strong focus on research and development. Specifically, Philips maintains a product-focused strategy and their highly decentralized National Organizations allow them to adapt to different market conditions globally. Human capital has historically been a key resource for the company, as they focused on caring for their workers and coordinating business efforts in a cross-functional environment (i.e. technical and marketing managers working on projects together), but frequent leadership turnover and seemingly endless turnaround efforts have weakened this valuable capability. It is arguable, however, that the cross-functional culture is still active at Philips and most of the top management team has completed foreign tours of duty.

Philips is a Dutch diversified technology company headquartered in Amsterdam with primary divisions focused in the areas of Healthcare, Consumer Lifestyle and Lighting. It was founded in Eindhoven in 1891 by Gerard Philips and his father Frederik. It is one of the largest electronics companies in the world and employs around 122,000 people across more than 60 countries. (Philips, 2011) Its profit (for the year 2012) amounted €226 million.