Bab #7 e-Procurement

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We estimate that for every dollar a company earns in revenue, 50 cents to 55 cents is spent on indirect goods and services – things like office supplies and computer equipment. That half dollar represents an opportunity: By driving costs out of the purchasing process, companies can increase profits without having to sell more goods)

Hildebrand, 2002

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Latar Belakang

Ironisnya penghematan minimal yang bisa dilakukan adalah pengurangan resources di sisi procurement.

Di kebanyakan pemerintah daerah di Indonesia, lebih dari 60% pengeluaran adalah untuk membayar gaji pegawai. Daerah khusus seperti Aceh Utara bahkan mencapai 86%

Banyak perusahaan fokus pada revenue dan lupa bahwa pengeluaran terbesar perusahaan di eksekusi oleh procurement.

Jika marketing, operations dan strategy lebih fokus pada bagaimana menghasilkan lebih banyak keuntungan, maka procurement lebih fokus pada berapa banyak yang bisa dihemat.

Perbedaan antara purchasing (pembelian) dan procurement (pengadaan), menurut Kalakota dan Robinson, procurement memiliki arti yang lebih luas, yakni mulai dari pembelian, transportasi, dan penyimpanan di gudang sebelum dipakai.

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5 Rights of Purchasing

At the right price Delivered at the right time Of the right quality Of the right quantity From the right source

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The combined use of information and communications technology through electronic means to enhance external and internal purchasing and supply management processes. These tools and solutions deliver a range of options that will facilitate improved purchasing and supply management.

Chartered Institute of

Supply and Purchasing (CIPS, www.cips.org.uk) * CIPS menganggap Purchasing dan Procurement adalah sinonim

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E-Procurement Benefit Definition #1

CIPS

Evaluation of end-to-end trading cycles, e.g. evaluation and possible re-engineering of trading cycles leading to reduced cycle times; improved workflow of the internal procurement process enabling end-user self-service and decentralization with centralized control through company-specific catalogues; new functionality such as on-line bidding in e-auctions and e-requests for quotations (RFQs).

Use of more efficient and cheaper connectivity methods such as the Internet and XML (a computer language for coding content and delivery). XML is not, however, a requirement for e-procurement as many solutions do not utilize it.

Connectivity to external sources of information, e.g. portals, e-hubs, e-marketplaces

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E-Procurement Benefit Definition #2

CIPS

Connectivity to external supply chains, e.g. extranets, EDI, e-hubs, e-marketplaces – allowing shared real time information such as suppliers accessing real-time sales.

Sourcing, e.g. identifying new sources via the Internet, use of intelligent search engines.

Content management, e.g. private catalogues, public catalogues, internal inventory management, maintenance management.

Connectivity to internal systems and sources of information such as inventory management, maintenance management, materials resource planning (MRP) systems.

Payment systems, e.g. purchasing cards. Multimedia (although e-procurement does not

necessarily contain multimedia elements). Improvements in localized supply chain

mechanisms and consortia etc. leading to mutual benefit.

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Key Procurement Activities within an organization

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Traditional Procurement

Cycle time memerlukan sekitar 5,5 hari.

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New Procurement

Cycle time memerlukan sekitar 1,5 hari.

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Types of Procurement

Dari sudut pandang barang Production related procurement Non Production Related

Procurement Dari sudut pandang vendor

Systematic Sourcing Biasanya menggunakan kontrak

jangka panjang. Spot Outsourcing

Kebutuhan segera,/instan dimana kredibilitas vendor tidak terlalu dipemasalahkan.

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Online Procurement Participans #1

Beberapa perusahaan IT biasa menjual perangkat dengan garansi batere sd 3 tahun, meski principa tidak menyediakan.

Traditional manufacturers which produce physical goods that are

generally sold to other corporate customers. Direct sales manufacturers

similar to traditional manufacturers except that they bypass intermediaries and sell direct to end consumers via web or phone channels. These can include services companies, for example insurer Dell (www.dell.com) or airline easyJet (www.easyjet.com). Direct sales manufacturer can be a cost-effective option for companies procuring business services such as flight bookings for staff.

Value-added procurement partners act as intermediaries to sell products and

services to other businesses; examples include travel agents and office solutions companies.

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Online Procurement Participans #2

Online hubs are industry-specific vertical portals such as

Elemica (www.elemica.com) that generate revenues via B2B exchanges.

Knowledge experts who produce information goods, for

example E-consultancy.com and Hitwise.com have subscription services with innovation alerts, best practice and statistics of Internet usage.

Online information services provide unique information to end users

that is either original in its development or provides a unique editorial perspective. This is similar to the Knowledge experts category. From an e-procurement perspective, as we saw in Chapter 6, SaaS services such as E2open (Figure 6.11) are available to manage the information supply chain.

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Online Procurement Participans #3

Online retailers include start-up e-businesses and more

traditional multi-channel retailers.Euroffice (www.euroffice.co.uk) is an example of an Internet pureplay providing office goods at lower prices than traditional providers. Traditional providers in this space with a network of stores include Staples (www.staples.com).

Portal communities seek to aggregate different online information

services into an integrated customer experience, for example personalized news stories, online bill presentment and payment and community discussion features. These overlap with the online information service and knowledge experts.An example is AccountingWeb (www.accountingweb.co.uk) which would support accountants in selecting services needed to run their business and would also support other businesses looking to select accountancy firms.

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E-business e-value grid

Source: Riggins and Mitra (2007)

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e-Procurement Benefit

Turban et al. (2000)

Reduced purchasing cycle time and cost Enhanced budgetary control (achieved

through rules to limit spending and improved reporting facilities)

Elimination of administrative errors (correcting errors is traditionally a major part of a buyer’s workload)

Increasing buyers’ productivity (enabling themto concentrate on strategic purchasing issues)

Lowering prices through product standardization and consolidation of buys

Improving information management (better access to prices from alternative suppliers and summaries of spending)

Improving the payment process (this does not often occur currently since payment is not always integrated into e-procurement systems).

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Barriers to adoption of e-Procurement

CIPS (2008)

Competition issues, e.g. in exchanges using collaborative purchasing

Possible negative perception fromsuppliers, e.g. theirmargins reduced further frome-auctions

Negotiated procurement benefits may be shared with other exchange users who may be competitors

Creation of catalogues can be a long process and costly to suppliers

Culture profile within organizations, e.g. resistance to change.

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Procurement as a percentage of costs of goods sold for different industrysectors

(estimates from Kluge, 1997)

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The three main e-procurement model alternatives for buyers

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Integration between e-procurement systems and catalogue data

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The Future of e-Procurement

In the future, some suggest that the task of searching for suppliers and products may be taken over by software agents which have defined rules or some degree of intelligence that replicates intelligence in humans. An agent is a software program that can perform tasks to assist humans. On the Internet, agents can already be used for marketing research by performing searches using many search engines and in the future they may also be used to search for products or even purchase products. Agents work using predetermined rules or may learn rules using neural network techniques. Such rules will govern whether purchases should be made or not.

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Summary #1

Procurement akan berjalan lebih baik jika untuk semua item yang diperlukan kita memiliki aplikasi layaknya SkyScanner untuk pembelian tiket pesawat.

Procurement activities involved with purchasing items from a supplier include purchasing, but also transportation, goods-in and warehousing before the item is used.

e-Procurement involves the electronic integration of all procurement activities.

The numbers of staff and stages involved in procurement are reduced through e-procurement by empowering the originator of orders and changing the role of buying staff.

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Summary #2

E-procurement is intended to achieve reduced purchasing cycle time and cost savings, principally through reduced staff time spent in procurement and lower inventory.

Options for introducing e-procurement include: Sell-side e-procurement – purchase direct

from a seller’s web site that is typically not integrated with the buyer’s procurement system.

Buy-side e-procurement – integration of sellers’ catalogues with the buyer’s procurement system.

Marketplace procurement – trading through an intermediary with many suppliers (may or may not be integrated with buyer’s procurement system).

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Summary #3

The main types of electronic marketplace in the terminology of Kaplan and Sawhney (2000) are combinations of: Systematic sourcing of operating resources

(MRO hubs) Systematic sourcing of manufacturing

resources (catalogue hubs) Spot sourcing of operating resources (yield

managers) Spot sourcing of manufacturing resources

(exchanges). Organizational hurdles involved with the

introduction of e-procurement include redeployment or redundancy of staff and overcoming fears of trust in suppliers.

The main technical challenges are the integration or replacement of a range of existing purchasing systems with a variety of supplier or marketplace systems.

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AppendixERP

ERP Conceptual

What Is ERP ? #1 Forget About Planning ! Forget About Resources ! Remember The Enterprise Part !

What Is ERP ? #2 To Integrate All Departments and Functions

Across a Company onto a Single Computer System That Can Serve all Those Different Department’s Particular Needs

How ERP Improve Business ? Back Office Oriented Not Handle Front Selling Process Different Department See the Same Info Workflow Single Entry Self Service

How Long ERP Project Take ? The important thing is not to focus on how

long it will take – real transformational ERP efforts usually run between one and three years – but rather to understand why you need it and how you will use it to improve your business.

ERP Five Major Reason Integrate Financial Information Integrate Customer Order Information Standardize and Speed Up Manufacturing

Process Reduce Inventory Standardize HR Information

ERP Hidden Costs #1 Training Integration and Testing Customization Data Conversion Data Analysis Consultants Replacing your Best and Brightest

ERP Hidden Costs #2 Implementation Teams Can Never Stop Waiting for ROI Post ERP Depression

Why do ERP Project Fail ? Too much customizations People don’ t agree to change their business

process Fail to adopt the s/w work methods

Others Terminology SCM : Supply Chain Management MRP : Material Resources Planning CAMMS : Computer Aided Maintenance

Management System e-AM : Enterprise Asset Management CRM : Customer Relationship Management

* SCM = MRP / CAMMS = e-AM

CRM vs SCM vs ERP vs EAM

Procure

ManufactureFulfill

Service

DevelopDevelop

Plan

Market

Sell

Supply ChainManagement

CustomerRelationshipManagement

e-AM + ERP