Information Technology Impact on the Purchasing Department

2223 Words Jan 11th, 2011 9 Pages
CONTENT

1. Introduction…………………………….…………………………………….Page3
2. Information Technology and Purchasing……………………………………Page 3
3. E-purchasing…………………………………………………………..…….Page 4
3.1. E-sourcing……………………………………………………………...….Page 5
3.2. E-procurement…………………………………………………..………….Page6
3.3. Electronic Data Interchange (EDI)………………………………….……..Page 7
4. Examples………………………………………………………………...…..Page 7
4.1. Slow implementation……………………………………………………..Page 7
4.2. Fast Implementations……………………………………………………..Page 8
5. Conclusion………………………………………………………………………...Page 9
Bibliography……………………………………………………………….……….Page 10

The purpose of this paper is to discuss of the various ways in which information technology has changed the purchasing department, in particular how the Internet
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This is a necessary ingredient in the completion of business agreements.
The Computer Purchasing Systems in practice may be used for, stock control and requisition, purchase order placing, expediting, goods receipt, reporting, transaction processing, data capturing and to allocate stock (barcode system).
3. E-purchasing
E-purchasing creates value for organization by reducing cost of goods and services, giving higher productivity and reducing processing cost and gives better information and better planning. The e-purchasing can be split in two parts, the e-sourcing and e-procurement as illustrated in Figure 1. Figure 1
3.1 E-sourcing (strategic direction) using the Internet and it covers the elements of buying process which are:
- knowledge specification
- request for quotation, e-auction, e-tenders
- evaluation – negotiation
E-sourcing system should enable the sourcing team to:
- analyze and model complex decisions in real time
- automate the management to contract amendments and renewal
- collaborate with suppliers
- provide real time information
E-sourcing use the internet to make decisions regarding how and where services or products are obtained. E-marketplaces play an important role in this activity, since the price and availability of products from multiple suppliers can be checked from a single point. Another benefit for E-marketplaces in terms of product sourcing is that not only they provide detailed product information from existing suppliers, they
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