Definitions of e-procurement have been varying across literature in the field. Wu et al. (2007) have defined e-Procurement as the information technologies used to facilitate the purchase transactions for materials and services. Davila et al. (2003) have identified the use of electronic methods in the purchasing process through payment and contract management as E-procurement. Furthermore Croom & Brandon-Jones (2004), identify the e-Procurement as the use of Internet-based information and communication technologies (ICTs) in all stages of procurement process such as search, sourcing, negotiation, ordering, receipt, and post-purchase review.
Boer et al. (2002) have recognized six forms of e-Procurement activities that focus on the procurement process which are ordering/e-Maintenance Repair Operate (MRO), web-based enterprise resource planning (ERP), e-sourcing, e-tendering, e-reverse auctioning/e-auctioning and e-informing. E-Procurement can be viewed more broadly as an end-to-end solution that integrates and streamlines many procurement processes throughout the
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Kalakota and Robinson (2000) have identified benefits in cost saving, improved efficiency, measurement and single data entry; consequently, these are the three catalysts driving growth in the e-procurement area. E-Procurement is the procedure that involves goods procurement automation by use of the internet. This process leads to significant reduction in both cost and time. As noted by Quinnox (2012), e-procurement is a very comprehensive phenomenon which includes making strategic initiatives and it can be used in reorganizing the entire purchasing process. A properly implemented e-Procurement system can connect companies and their business processes directly with suppliers while managing all
This paper clearly explains the reasons for the failure of automatic procurement systems which is built for their production and non-production suppliers. The factors that leads to shut down the project are represented in this paper. The two main things that cause project failure are over budget, not meeting deadlines.
The optimal management of procurement activity requires the minimization of not only direct and obvious costs such as unit costs but also related but less tangible costs. The primary costs related to procurement are composed of: unit cost, inventory holding cost (storage and handling costs), finance costs (corporate capital charge) and order cost (quote and PO placement cost). This procurement optimization process and the resulting quantity are commonly referred to as “Economic Order Quantity” analysis. The primary focus of this paper is to outline potential approaches to optimizing AAR’s procurement processes through Economic Order Quantity analysis.
Three of these organisations are small scale of businesses and they are in different market. In supply chain concept, Business 1 and Business 2 are in the same position, they are both retailer. In contrast Business 3 is the wholesaler. The first step of procurement process that applied by three organisations is identify the requirement of their major products. At this stage, other department in these three organizations identify their requirements to the procurement department and normally they will provide description like quantity, requirement date, and preferred vendor. This first stage is critical because any faulty might costs the organization.
Businesses must not implement e-business just because it is the fad but rather determine whether it will enable their strategy to have a competitive edge. Several e-business models have been introduced and a choice is made depending on the nature of business.
Procurement is a process that contributes to maintaining quality, cost and time. The procurement system should be planned and built, one component at a time, until a level of reliability is achieved. Procurement planning may combine traditional quality methods, which include contract administration and closeout processes, contractor selection and procurement planning to identify the client’s preferred suppliers. Those involved in procurement management know that suppliers today have electronic capabilities that enable the timely and efficient flow of information, including review and approvals. Agile relies on software and Internet interface, reducing paperwork and creating a team including both client and procurement specialists. Traditional procurement management
The procurement process model begins with identification of need(s) for operational sustainability of the organization. These needs are determined by daily activities of individuals and departments which are consolidated to become the overall organization need. This information on most organization become the basic information or input for
E-commerce is the use of electronic methods and technologies to sell and purchase either goods, services or information. The e-commerce concept was first introduced in the early 1990’s takes place over the World Wide Web. In this context, there are three distinct levels of integration in e-commerce including vertical integration and cross-business integration. The vertical level of integration involves the linkage between the front end of the website and transaction systems On the other hand, the cross-business integration involves linking a company’s website with the websites of its customers and suppliers. The third and final level of integration is the inclusion of technology to handle customers’ orders, purchases and customer service. Consequently, these three levels of integration give rise to a combination of links, information, websites and e-commerce websites, which are accessible over the internet.
Definitions of procurement are abundant. For the sake of this paper, I will use the definition given by BusinessDictionary.com, which states that procurement is the act of obtaining or buying goods and services. The process includes preparation and processing of a demand as well as the end receipt and approval of payment. Procurement may be further classified according to the sector that it serves such as public or private.
20th century is a competitive, fast growing and continually changing era. Many new business departments evolved out of which supply chain management becomes one of the major and core function of modern business. According to the entrepreneurs the mantra of success depends on the integration among various business departments. i.e. ( Hrm, Marketing, Finance and Scm ).
The purpose of determining requirements of procurement is that in this stage of the planning we decide on the direction we want the project to take. Important decisions need to be made regarding the resourcing of tasks, using internal capabilities or to procure those resources externally. When we are resourcing we are looking for the best way to get the work ahead completed. Using internal capabilities means that we use the resources that we already have to complete the work ahead and to procure resources externally means that we search for a supplier that will complete the work ahead to a satisfactory quality and schedule for an agreed cost. Key considerations to look at would be that a general rule of thumb is that poor procurement planning
This system connects, accumulates, processesas well as provides imperative information to all parties thus enhancing continuity in the procurement process. However, if valid output is to be expected, features as well as requirements of the procurement process must be compatible to current system technologies (Giner, et al, 2011). The harmonization of suppliers as enhanced through the adoption of electronic sourcing enables firms to readily identify new potential suppliers for specific needs when old suppliers` capabilities are in question. The adoption of E-tendering that supports sending requests of pricesand information to suppliers as well as receiving suppliers responses improves on procurement efficiencies as it leads to significant cost reductions thus leading to better procurement performance through cost savings.For this system to achieve desired results however,all users must beready and willing to adopt the new systemsso enable seamless adoption and consequently ensure optimal
Purchasing process is the process of buying the right material, at the right quantity, at the right moment, at the right price and from the right supplier ( Heinritz et al, 1986). It can also be defined as the way an organisation behaves towards it suppliers, as suppliers are the pillar of strength for all organisations at large. According to We...
E- Commerce is a phenomena that is emerging rapidly between businesses all over the world, and it has affected the businesses at all sizes in many aspects.
E-business and e-commerce are terms that are sometimes used interchangeably, and sometimes they are used to differentiate one vendor’s product from another. In both cases, the e stands for "electronic networks" and describes the application of electronic network technology - including Internet and electronic data interchange (EDI) - to improve and change business processes (Bartels, 2000)
The high take-up of the Internet leads to variety of opportunities in front of companies. People are more online than ever. They spend many hours each day on Social Networks such as Facebook and Google+. It is no wonder that buying and selling can now be done in a more convenient way. Although traditional shopping is still thriving, online shopping can be an alternative for people wanting to save time and money. If a certain customer plan to go shopping, it could be stressful and also be time consuming. E-business has made shopping or any kind of transactions online much easier and convenient. It introduces new facilities, opportunities and way of shopping for both vendors and customers.