Electronic Procurement ( E Procurement )

1259 Words Dec 5th, 2016 6 Pages
Infusion with technology would create new opportunities for petroleum industry to extend their supply chains by reducing the transaction and sourcing cycle time and improved integration of the company with suppliers and customers. Because of incorporated with centralized tracking, system of transactions enables full reporting on requisition, things obtained, orders handled and installments made, therefore advancing the straightforwardness and minimizing the manual interventions and errors throughout the procurement process (Angeles and Nath, 2007).
The short process from request to purchase order, better aggregation and lower administrative costs have optimized the cost of procurement if compared with conventional methods(Ingalls et al., 2003). This entire procedure can make further competitive, cost effective and transparent by acquiring the merchandise and items electronically. The internet has transformed the world now turn into a noteworthy player in enhancing the profitability inside the organizations through e-procurement (Ageshin, 2001).
Electronic procurement (e-procurement) will keep on playing a main part in picking up cost efficiencies and sparing time inside the oil and gas industry 's investigation and creation division. As such, industry has made awesome steps toward customizing, planning, and actualizing e-procurement arrangements in its different business sectors; the relationship amongst purchasers and suppliers is turning out to be more…
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