Benefits And Challenges Of Eprocurement

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This essay discussed one particular application system in supply chain management system, that is eProcurement. The information within this essay was based on academic literatures such as books and journals, also using some websites as references. This essay comprises of 4 focal points on examining eProcurement system, namely System Description, Process Supports, Benefits, and Problems.

a. System Description
From time to time, eProcurement definition among researchers is slightly differs from one to another. Croom and Brandon-Jones (2007) defined eProcurement as the use of Internet-based information and communication technologies to perform part or all of the purchasing processes. Presutti (2003) stated that procurement processes are part of supply chain management, and by using electronic or information technologies, these processes can be delivered in more effective and efficient way. Eventhough researchers have different terms to explained eProcurement, nonetheless most of the researchers agreed that eProcurement can be pictured broadly as an end-to-end solution for procurement processes in an organisation which offers luxuriant benefits, but also pose various challenges at the same time (Vaidya et al., 2006). Figure 1. Process Relationship in Procurement (Podlogar, 2007)

As we can see in the Figure 1., …show more content…

eProcurement helps to fast-track the flow of important information between buyer and supplier, therefore the business process could be done more efficiently. This happens because documents and papers are replaced with IT Network and application which equipped with automation system (Lin and Hsieh, 2000). For example, XEROX, a worldwide multinational company, used eProcurement to connect with their global suppliers, by doing this XEROX can simplify and automate their processes on getting their required materials and services (Hall,

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