Mateja Podlogar, M.Sc.25 October, 2002 Merkur Day A Model of Electronic Commerce Critical Success...
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25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
A Model of Electronic Commerce Critical Success Factors in Procurement Process
M.Sc. Mateja Podlogar, Teaching AssistanteProcurement Laboratory, eCommerce Center,
Faculty of Organizational Sciences,
University of Maribor, Slovenia
http://eCom.fov.uni-mb.si
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
Procurement process and Electronic Commerce
Payment tosupplier
Takingdelivery
OrderingMaking acontract
Vendorselection
Bidding
Info searchabout
possiblesupplier's
requisitionrequest
Buyer Supplier
Procurement
Purchasing
Supply Chain
Supplier 1
Supplier 2
Supplier n
Supplier'ssuppliers
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
Buyer Supplier
Reduce costs
Closer relationships between buyers and suppliers
Improve business-executing quality
E-Commerce promises great opportunities
Reduce time
B u s i n e s s p r o c e s s r e d e s i g n
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
Problem definitions
The problem of the electronic commerce critical success factors ignorance in the procurement process.
The efficient electronic commerce introduction into the process.
The procurement process - a strategically importance to enterprises' business processes.
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
Goals of the Research
A Model of Electronic Commerce Critical Success Factors in Procurement Process.
Research questions:What are the electronic commerce factors in procurement process?
What is the importance of each electronic commerce factor in procurement process?
What is the connection and dependence among these factors?
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
Research Methodology - empirical study
Literature review.
Interviews in five large enterprises in Slovenia
Procurement, logistics and informatics managers from three different enterprises tested the questionnaire.
250 large enterprises with web page and the highest revenues in Slovenia.
The questionnaires returned by the 133 respondents.
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
Limitations
e-Commerce between a buyer and a supplier,
Procurement process between a buyer and a direct supplier,
250 large enterprises with web page and the highest revenues in Slovenia.
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
Research model
Electronic commercebenefits in
procurement process
impactview
impact
Electronic Commerce
Factors
Time
PROCUREMENTPROCESS
ProcurementProcess
Participants
Costs
Simplicity
The number oftransactions
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
The questionnaire
Three parts:Respondents and enterprises data,Electronic commerce experiences and Electronic commerce critical sucess factors (time, costs, simplicity and the number of transactions)
Second part:Please provide the existence and/or future plans for Electronic Commerce strategy and its definition in your enterprisePlease indicate whether your enterprise has a Director/Manager of Electronic Commerce: Does your enterprise use ERP (Enterprise Resource Planning) system (SAP, Oracle Business Suite, Baan, Navision, Kopa ERP, MAOP – MCR solutions, your own solution)?
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
Electronic Commerce Experiences– Electronic commerce strategy
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
Electronic Commerce Experiences – Director/Manager of Electronic Commerce
No54,1%
Yes29,3%
Don't know5,3%
Plans to have him/her after 12/2003: 3,8%
Plans to have him/her by 12/2003: 7,5%
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
Electronic Commerce Experiences – ERP (Enterprise Resource Planning) system use
No12,0%
Yes75,2%
Don't know3,8%
Plans to useafter 12/2003: 3,0%
Plans to useby 12/2003: 6,0%
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
A model of critical success factors in procurement process
Electroniccommerce
benefits in theprocurement
process
0,925
Business preparation time
Business implementation time
Time ofbusiness data
processing
0,836
Business preparation costsCosts of
business dataprocessing
Business preparation simplicitySimplicity ofbusiness data
processing
The number of transaction in connectionwith transportation and payment
The number of transaction in connectionwith taking delivery
The number of transaction inconnection with bidding
The number of transaction in connectionwith ordering from supplier
Group of factors
The number oftransaction ofbusiness data
processing
0,588
0,804
0,537
0,848
Procurement process
0,894
0,885
Business implementation costs
0,890
0,771
Busienss implementation simplicity
Main factors
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
First group of factors:
Time of business data processing
Time of access to vendors' goods orcatalogs
Time of ordering from vendor
0,815
0,754
Time of access to vendors' inventorydata
Time of vendors' access to buyerinventory
0,567
0,566
Businessimplementation time
Business preparationtime
Time of businessdata processing
Electronic commercebenefits in the
procurement process
Time of vendors selection
Time of payment to vendor
Time of order tracking
Time of inventory turnover
0,711
0,591
Time of search for transporters
Time of transport ordering
Time of receiving of delivery dataannouncement
Time of delivery receiving Time of reclamation solving
0,823
0,870
0,880
0,784
Time of taking delivery
Time of possible supplier'srequisition request
Time of bidding
Time of replacement of supplier
0,726
0,834
0,681
0,646
0,725
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
Second group of factors:
Costs of business data processing
Costs of access to vendors'inventory data
Costs of vendors' access to buyerinventory
Costs of payment to vendor
Costs of order tracking
Costs of inventory warehousing
0,617
0,558
0,688
Businessimplementation costs
Business preparationcosts
Costs of businessdata processing
Electronic commercebenefits in the
procurement process
0,593
0,444
Costs of searching for transporters
Costs of transport ordering
Costs of receiving of delivery dataannouncement
Costs of delivery receiving Costs of reclamation solving
0,859
0,845
0,876
0,817 0,672
Costs of taking delivery
Costs of possible supplier'srequisition request
Costs of bidding
Costs of replacement of supplier
Costs of access to vendors' goods orcatalogs
Costs of ordering from vendor
0,823
0,848
0,698
0,850
0,691
Costs of vendors selection
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
Third group of factors:
Simplicity of business data
processing
Simplicity of possible supplier'srequisition request
Simplicity of bidding
Simplicity of replacement ofsupplier
Simplicity of access to vendors'goods or catalogs
Simplicity of ordering from vendor
0,862
0,888
0,694
0,820
0,652
Simplicity of access to vendors'inventory data
Simplicity of vendors' access tobuyer inventory
0,547
0,636
Businessimplementation
simplicity
Business preparationsimplicity
Simplicity ofbusiness data
processing
Electronic commercebenefits in the
procurement process
Simplicity of vendors selection
Simplicity of payment to vendor
Simplicity of order tracking
Simplicity of inventory management
0,741
0,610
0,645
Simplicity of search for transporters
Simplicity of transport ordering
Simplicity of receiving of deliverydata announcement
Simplicity of delivery receiving Simplicity of reclamation solving
0,819
0,860
0,808
0,717
Simplicity of taking delivery
0,736
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
Fourth group of factors:
The number of transaction in connection with business data processing
The number of transaction inconnection with possible supplier's requisition request
The number of transaction inconnection with bidding
The number of transaction inconnection with access to vendors' goods or catalogs
The number of transaction inconnection with ordering from vendor
0,567
0,736
0,834
0,860
0,772
The number of transaction inconnection with access to vendors' inventory data
The number of transaction inconnection with vendors' access to your inventory
The number of transaction inconnection with payment to vendor
The number of transaction inconnection with order tracking
The number of transaction inconnection with search for transporters
The number of transaction inconnection with transport ordering
The number of transaction inconnection with receiving of delivery data announcement
0,830
0,822
0,540
0,723
The number of transaction inconnection with receiving of supply order from vendor
The number of transaction inconnection with receiving of invoice from vendor
0,839
0,763
0,813
The number of transaction inconnection with receiving of order acknowledgment from
vendor
0,812
0,829
The number oftransaction in
connection withtransportation and
payment
The number oftransaction in
connection withtaking delivery
The number oftransaction in
connection withbidding
The number oftransaction in
connection withordering from
supplier
The number oftransaction of business
data processing
Koristielektronskegaposlovanja v
procesuoskrbovanja
25 October, 2002 Merkur DayMateja Podlogar, M.Sc.
Conclusions
In a practical sense, it is very important to know findings in connection with electronic commerce that are important for its development and implementation.
Researchers may give importance only to those factors that are found as really important ones.
Second practical contribution is that planning, implementation and expanding of e-Commerce in procurement process give some suggestions on how to become more efficient and effective.
Knowing e-Commerce factors contribute to finding new business opportunities and also to the enterprise competitiveness.