 eProcurement E-procurement (electronic procurement, sometimes also known as supplier exchange) is the business-to-business or busienss-to-consumer purchase and sale of supplies and services through the Internet as well as other information and networking systems, such as Electronic Data Interchange and Enterprise Resource Planning. Typically, e-procurement Web sites allow qualified and registered users to look for buyers or sellers of goods and services. This encompasses the requisition through payment processes. Companies participating expect to be able to control parts inventories more effectively, reduce purchasing agen overhead, and improve manufacturing. E-procurement is expected to be integrated with the trend toward computerized supply chain management. DocumentsDate added
Buyers Meeting Point recently had an opportunity to speak with Rod True, COO at Spend Radar, about their entry into the spend analysis solutions market. Although the company only began selling its product on January 1, 2009, Rod is hardly a newcomer to the procurement software world.
In Forrester's 54-criteria evaluation of eSourcing vendors, we found that Ariba, Emptoris, and Oracle E-Business Suite are Leaders, due to their support for global program management and advanced sourcing techniques. Companies looking to implement online sourcing events can also choose from a diverse group of Strong Performers. BravoSolution and i-Faber deliver fully managed eSourcing service based on solid products. Agentrics and Siemens PLM Software lead for customers in their target verticals. Oracle's PeopleSoft and SAP have competitive offerings for users of their ERP suites. Last but not least, Zycus is a newcomer building on its excellent reputation in the related category of spend analysis. Enterprises should use our Forrester Wave™ tool to guide their selection once they have determined their own priorities. Prospective buyers should also consider our assessment of the vendors; strategies to ensure that their pick will continue to thrive in this growing but increasingly competitive market.
Internet auctions provide competitive advantage by influencing the price, quality and logistical parameters of purchased products and services. Internet auctions have led to an average incremental saving between 2-12% when used after a Request for Proposal process. If an internet auction is used directly after supplier pre selection, saving levels of 30% have been achieved. In combination with literature studies, it is fair to conclude that internet auctions, even in a basic set-up will lead to significant savings.
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