Presentation Description

This presentation explains the concept, types and advantages of e procurement. With the increase of computerization and advent of technology, traditional form of procurement is giving way to e procurement. There are certain distinct advantages to the systems as discussed in the presentation. This presentation is suitable for class discussions, class-notes for the MBA, PGDM or BBA level courses. In this current era of e-business and e-commerce, this presentation would be a good introduction to the topic to students.


Presentation Transcript

E – Procurement:

E – Procurement Presented by: Anupam Kumar Reader School of Management Sciences, Varanasi Email: anupamkr@gmail.com 1 © Copyright 2013 Anupam Kumar

E- Procurement:

E- Procurement E-Procurement is the business-to-business or business-to-consumer or business-to-government purchase and sale of supplies, work and services through the internet as well as other information and networking systems, such as electronic data interchange and enterprise resource planning. 2 © Copyright 2013 Anupam Kumar

PowerPoint Presentation:

3 © Copyright 2013 Anupam Kumar

E-Procurement Processes:

E-Procurement Processes The e-procurement value chain consists of: Indent management, E-Tendering E-Auctioning Vendor Management Catalogue management Purchase order integration Order status Ship notice E-Invoicing E-Payments and Contract management. 4 © Copyright 2013 Anupam Kumar

E-Procurement through Websites:

E-Procurement through Websites E-Procurement websites allow qualified and registered users to look for buyers or sellers of goods and services. Here, buyers or sellers specify prices or invite bids and transactions can also be initiated and completed. Companies participating are able to control parts inventories more effectively, reduce purchasing agent overheads and improve manufacturing cycles. 5 © Copyright 2013 Anupam Kumar

Types of E-Procurement Activities:

Types of E-Procurement Activities E-Tendering Unordered list item sending requests for information and prices to suppliers demand receiving their responses. E-Reverse Auctioning Buying goods and services from a number of unknown suppliers E-Informing Gathering and distributing purchasing information from and to other parties. E-Sourcing Identifying suppliers for a specific category of purchasing requirements. Web Enabled ERP (Enterprise Resource Planning) E-MRO (Maintenance, Repairs and Operations) 6 © Copyright 2013 Anupam Kumar

Reverse Auction:

Reverse Auction It is a process through which the bidders participate in an auction online. All bidders can participate simultaneously. The buyer fixes the specifications and commercial terms and fixes the purchase price, below which the bidders have to quote. Bidding starts at a pre-fixed time. All competitors can see the prices quoted, as quoted by all, so that they can reduce their own bids. 7 © Copyright 2013 Anupam Kumar

E- Procurement Model:

E- Procurement Model E-catalogue ordering Online Ordering Reverse Auction Web Tendering E-Procurement Transaction convenience Global reach Transparency Cost saving Paperless 8 © Copyright 2013 Anupam Kumar

Advantages of E-Procurement:

Advantages of E-Procurement Helps in decision-making by keeping relevant information neatly organized and with time stamping. Organizations can focus on their most lucrative trading partners and contracts. Enhances comparability of suppliers and prices Reduces energy and hassles associated with procurement process. Helps reduce inventory levels Minimizes process costs by fast transaction of the purchasing orders. Helps managers to organize administrative users by roles, groups or tasks. 9 © Copyright 2013 Anupam Kumar

Traditional V/s E-Procurement:

Traditional V/s E-Procurement Sr. No. Aspect Traditional Buying Process E - Procurement Process 1. Floating Enquiry, Inviting quotations, tenders, evaluations, negotiations, purchase orders, follow ups, etc. Paper based Paperless 2. Terms & conditions Biased either to the seller or the buyer depending on the relative strengths Usually n on-biased 3. Transparency / Secrecy Bidders are unaware of the competitors in the process and their offerings. Transparent system as each competitors knows the prices at which the auction gets closed. 4. Time Time consuming Quick process. 10 © Copyright 2013 Anupam Kumar


Bibliography Books: Agrawal , D.K., (2010) “Supply Chain Management: Strategy, Cases and Best Practices”, New Delhi: Macmillan Publishers. Ballou , R.H. and Srivastava , S.K., (2007) Fifth Edition, New Delhi: Dorling Kindersley (I) Pvt. Ltd. Bhatt, K.S., (2008), “Logistics Management”, Second Edition, New Delhi: Himalaya Publishing House Ismail, R., (2008), “Logistics Management”, New Delhi: Excel Books Kachru , U., (2009), “Exploring the Supply Chain: Theory and Practice”, New Delhi: Excel Books Raghuram , G. and Rangaraj (Eds.), (2000) N., “Logistics and Supply Chain Management: Cases and Concepts”, Chennai: Macmillan Publishers, 2010 reprint. Sople , V.V., (2012), “Supply Chain Management”, New Delhi: Dorling Kindersley (I) Pvt. Ltd. Websites: http://en.ecommercewiki.info/fundamentals/market_places/e_procurement For Images and Clip arts: www.cardsdc.com all-tag.com lerablog.org 11 © Copyright 2013 Anupam Kumar

For further details / comments…:

For further details / comments… Contact: - Anupam Kumar School of Management Sciences, Varanasi. Email: anupamkr@gmail.com 12 © Copyright 2013 Anupam Kumar

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