E Business Management

E Business ManagementElectronic ProcurementModule Code and Module TitleTitle of Slides#In laymans term,e-procurement is nothing but electronic data transfer to support operational, tactical and strategic procurement.

In todays environment, most of the e-procurement is done through the Internet.

Traditionally, procurement of supplies and material was done through paper, and slowly migrated to usage of an electronic medium for order printing and storing.

With the advent of the Internet e-commerce flourished, and procurement was done through email and websites.

As the Internet technology evolved e-catalogue came in the forefront thus traditional procurement was getting done through the Internet. In the current market with data security and advanced tools whole process of e-procurement is done through the Internet.Introduction

Module Code and Module TitleTitle of SlidesNovember 05Using internet or intranet based information systems software to coordinate the buying, shipping, inventory management, supplier selection, and approval process of vital business acquisitions within the organizations core competency.

Module Code and Module TitleTitle of Slides3Asia Pacific University of Technology and Innovation#November 05E-ProcurementPurchasing Process - Buying ProcessPurchase Order Delivery ProcessPurchase Order Receipt ProcessOrder Fill TimingOrder AccuracyOrder Receipt Order InspectionOrder Payment Process

Module Code and Module TitleTitle of Slides4The fourth step in the procurement process is identifying the order cycle process. Most order processes consist of the creation of a purchase order, the follow-up and expediting of a purchase order, the receipt and inspection of the purchase order items, and the payment invoice of the purchase order. This step in the procurement process is the most costly, involves the most personnel, and most strongly affects the buyers core competency. On the other hand, e-Procurement has its greatest effect on this step of the procurement process. By understanding the order cycle process, the buyer has a better understanding of its procurement process.

Asia Pacific University of Technology and Innovation#November 05E-ProcurementPurchasing Process - Concluding ActionsOrder Record Storage & OrganizationOrder ReviewsBenchmarkingComparative Analysis

Module Code and Module TitleTitle of Slides5The final step in the procurement process is maintaining records of all acquisitions. This allows companies to create extensive databases of their buying habits. Buyers can record the frequency of purchases, the amount of purchases, the items purchased, the cost of the purchase, and the supplier of the purchases. Using this information companies can benchmark its acquisitions, negotiate contracts, and create pro forma projections. By maintaining extensive records a company will better understand its procurement process.

Asia Pacific University of Technology and Innovation#November 05E-ProcurementPurchasing ProcessNeeds IdentificationSpecificationsSupplier SelectionSupplier EvaluationPurchase Order PrepFollow-upReceipt/InspectionPaymentRecords ManagementModule Code and Module TitleTitle of Slides6Asia Pacific University of Technology and Innovation#Traditional Vs Internet ProcurementTraditional PurchasingNeedInform purcha-sing Department

Get ApprovalCreate Purchase OrderReceive in one weekRequest for quotationGetApprovalInternet purchasingNeedSearch approvedelectronic catalog

orderReceive in 2 daysApprove onlineModule Code and Module TitleTitle of SlidesHow the e-procurement process works...e-procurement enables distributed but controlled purchasing. It automates the process from requisition to payment - to streamline operations, shorten cycle times and reduce costsEnd UserSelect approved goodsCheck prices Check availabilitySubmit requisitionsSuppliersManage contentMaintain accuracyNegotiated relationshipsBuyer specific contentPurchasing Dept.Approve requisitionsPlace ordersManage consolidationAnalyse purchasing data

CataloguesModule Code and Module TitleTitle of Slides8Asia Pacific University of Technology and Innovation#1: Increase in Process Efficiency

E-Procurement reduces the administrative cost for each transaction shifted from paper to the electronic channel:reduced error ratesreduced processing timereduced fax / phone usagereduced on-site inventory

Los Angeles County have reduced the cost of procurement from an average of $130 per order to $40 per order.Their target is to achieve a cost of $25 per order.(Costs are inclusive of all business & IT personnel and systems involved in the procurement process)The principal benefitsModule Code and Module TitleTitle of Slides9Asia Pacific University of Technology and Innovation#A PwC client plans to generate savings of $50m per annum through increasing compliance from 40% to 75%.On-contract spendOff-contract spendElectronic procurement enables organisations to ensure procurement compliance: increased use of preferred suppliersreduced off-contract spendingreduced processing errors

so that:more goods are purchased at lower prices

Typically this is the largest element of the e-Procurement value proposition2: Increase in Contract ComplianceThe principal benefitsModule Code and Module TitleTitle of Slides10Asia Pacific University of Technology and Innovation#On-contract spendOff-contract spendThe same client is currently not certain where indirect spend goes and cannot fully exploit its buying power - estimates another $29m per annum through leverage.The principal benefits3: Increased Leverage of Purchasing Power

Electronic procurement provides greater oversight of purchasing spend:consolidated details of actual spend with each supplierconsolidated detail of actual spend in each product categoryso that:full purchasing power is leveraged to negotiate increased discountsappropriate product categories can be targeted for preferred supplier contractsModule Code and Module TitleTitle of Slides11Asia Pacific University of Technology and Innovation##Risk and Impacts??Future??Module Code and Module TitleTitle of Slides