E Procurement Analysis And Evaluation Of Two Of The Most Known E Auction

Supply chains must be managed to coordinate the inputs with the outputs in a firm to achieve the appropriate competitive priorities of the firm’s enterprise processes. The Internet offers firms an alternative to traditional methods for managing supply chains. A supply chain strategy is essential

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

Supply Chain Management (SCM) aims at integrating all corporate activities to improve relationships at all levels (internal operations, supplier networks, and distribution channel) to meet the competitive edge and satisfy the customer. In order to build an effective and complete business process that supports SCM, information among all business partners need to be shared. Information sharing through the Internet reduces the gap for business-to-business (B2B) commerce by enabling seamless integration with enterprise processes among partner corporations.

eBay was founded in 1995 and gained the first mover advantage establishing itself as the first major online auction site. The firm started out offering its' services as an intermediary, facilitating the auction of goods by providing a common platform to be used by buyers and sellers. Today the firm has evolved significantly, operating across the globe with more than 97 million different active users registered (eBay, 2012). In total, the organization facilitates the sale of more than US $2,000 every second of every day (eBay, 2012). The growth of the auction service has died classified the development as well as acquisition strategies to provide services and products that complement the core operations. For example, the acquisition of PayPal, the online payment provider has complimented the ability for consumers to pay for goods

While researching on line I came across an article that described the affect that the Internet is having on supply chains today. “E-enabled supply chain management is fast emerging as a core strategy that organizations worldwide are adopting for sustainable business advantage”. (4)

Omidyar added several clever ideas to eBay’s web service to stimulate interest. First, he adopted an auction-like trading format to not only create a sense of urgency, but also allow buyers to follow the bidding status for each item. Secondly, he provided sellers with opportunities to “spice up” their auction pages. Sellers were encouraged to upload pictures of their items or add music. Thirdly, Omidyar created the eBay Community, composed of registered traders sharing in common interests and passions for collectible and tradable goods. eBay listed all participants' email addresses and provided chat rooms, such as the eBay cafe, where eBay community members could talk about sale items, hobbies, or other non-trading related topics. Finally, eBay allowed users to discuss the relative quality of items, sellers, and buyers in the eBay community by providing a “Feedback Forum” for community members to interact. eBay's first auction occurred on Labor Day 1995. Three years later, with over one thousand categories listed and 70,000 new sale items added daily, eBay had become the largest and most popular person-to-person trading community on the Internet. The goods traded on eBay’s web site included: antiques, sports memorabilia, books, toys, cars, computers, dolls, coins, jewelry, electronics, photography, and music. The company neither received goods nor payments for goods, but simply provided an arena for buyers and sellers to interact. To generate

Since the 1960’s and the information revolution, man’s ability to transfer information has continued to grow not only more efficient but also more important. With the growth of e-commerce and electronic data interchange supplying a constantly updated information supply, being able to profit from information has been key to successful business practice. Originally exemplified by Wal-Mart’s ability to send and receive sales and supply information automatically, communication development, facilitated by services like the internet, has gone on to open up a worldwide market for many industries. This ability to transfer information instantaneously has given birth to a new generation of supply chain management systems where producers, suppliers, distributors, and increasingly even customers are all connected.

Evolution of the supply chain stems from Physical internet. Montreuil“If you think about the early days of computers, people loved using them, but they had no way to connect their computers to a community,” he says. “To get connectivity, we looked to transportation for a model and the information superhighway became the metaphor for the Internet.” The Physical internet approach is influenced by the internet network system where information is moved globally efficiently. The Supply chain system could use the Internet as a metaphor for a new way to move physical objects through the supply chain. As said by Meller “Imagine an EBay like exchange with all freight specified based on smart modular containers and visible to a vast community of users that rate each other to drive performance’’. This is a decentralised system that enables networking by aligning and coordinating the processes between customers’ suppliers and providers to manage logistics units efficiently and in a sustainable manner.

Supply chain management is currently an important aspect in Management Information System. So much technology and brainpower have been used to improve the performance. In this decade electronic data interchange has made the process flexible, automatic warehousing and rapid logistics. Every organizations are trying to make their supply chain management more accurate using quick response, efficient customer response, mass customization, lean and agile manufacturing. (Fisher, 1997)

In recent years, the impact of E-Commerce (EC) on supply chain (SC) has caught considerable attention. Many companies in the supply chain engage themselves in the field of EC to pursue benefits.

E-business allows us to be more competitive with other organisations by giving us the ability to share information and communicate throughout the organisation but also beyond that. It allows us to build relationships with our partners and customer. Supply chain management coordinates every part of the supply chain and this can be made easier through e-business as now communication can happen at almost no cost.

Supply chain management is currently an important aspect in Management Information System. So much technology and brainpower have been used to improve the performance. In this decade electronic data interchange has made the process flexible, automatic warehousing and rapid logistics. Every organizations are trying to make their supply chain management more accurate using quick response, efficient customer response, mass customization, lean and agile manufacturing. (Fisher, 1997)

In today’s society “technology”, especially the internet has taken an important role in the Supply Chain Management sector of business, and majority of the companies involved in Supply Chain Management have adopted new and improve technologies to gain a competitive edge, and become leaders within their industry. Supply Chain Management has become one of the leading industries in business. Companies recognized that in order to get their products to retailers and consumers on a timely manner they have to implement successful Supply Chain Management strategies. Companies have to identify the opportunities and challenges their organization might face in order to prepare for the future. Moreover, companies have to realize that selecting the

An e-procurement system is an information technology based system which is at the input end of the supply chain. These systems have been increasingly connected and embedded with other infrastructures to initiate growth of the companies. Due to which, they have become an integral part of the supply chain management. E-procurement system can improve the effectiveness of operation processes and transparency of supply chain since it helps to improve the efficiency of value creation.

Marthandan ,Malarvizhi , Tehrani (2016) Analysis the quality factor that significant impact on the success Of E-procurement implementation. This study has focused on critical success aspects of E-procurement when, it comes to implantation. This research paper leads through a structural equation model. Information gathered from 208 directors to convey quantitative method to research the relationship between E-procurement quality factor .In the outcome this investigation demonstrates that quality of organization culture affect the E-procurement. On the other IT infrastructure does not have critical relationship at E-Procurement success implementation. In addition, quality of knowledge has moderate relationship in the success of E-procurement but these variables do not influence directly to the dynamic capacity of Organization. In the suggestion, electronic service is most common need to precede industry environment and monetary development. We have to adapt the quality components that can apply on supply chain network at worldwide level to enhance success implantation of E-procurement.