 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
All too often an IT manager will focus only on system uptime or bandwidth utilizaiton while a business manager may seek to achieve top-notch customer service to increase the bottom line and grow the organization. This ariticle reviews approaches that will help both and may be helpful as you implement procurement or sourcing solutions.
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.
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.
In less than a decade, e-procurement has traversed the journey of being ridiculed as a poster child for the dot com bust to being praised as a source of competitive advantage for high performing enterprises. Best-in-Class enterprises demonstrate that automation and integration with other systems has transformed procurement into an information hub supporting decision making and business planning, while also driving significant improvements in transaction processing, contract compliance, and financial reporting. This is the fifth in a series of Aberdeen benchmark studies, which have been conducted since 1998, focusing on e-procurement performance and examining the goals, hurdles, strategies and results of 622 enterprises. This report also identifies the practices employed by Best-in-Class enterprises to maximize spend under control and optimize the value of their e-procurement initiative.
|
