E-Procurement

E-Procurement

1. Speeds purchasing

2. Reduces costs

3. Integrates the supply chain

4. reduces lots of paperwork in Electronic Ordering and Funds Transfer

   • Transactions between firms often use electronic data interchange (EDI)
     • EDI provides data transfer for virtually any business application
     • Data for purchase order are standardized in the EDI Format,

5. he following are some examples on how E-procurement can work

   • Online Catalogs
     • Provide current information about products in electronic form
     • They support cost comparisons and are efficient for both buyers and sellers
   • Online Auction sites
     • Online auctions lower entry barriers, which encourages sellers to join and simultaneously increase the potential number of buyers
   • RFQs When purchasing requirements are nonstandard
     • It provides purchasing personnel with an extensive database of vendor, delivery, and quality data
   • Real- Time Inventory Tracking International factories
     • Implement the tracking of packages by Internet systems

6. Strategic sourcing

   • It's a systematic process of analyzing expenditures, internal and external influences, and finding out what kind of supplier relationships are necessary to help achieve the company’s goals
   • Leading companies have realized how much they can benefit from strategic sourcing, and many have already achieved impressive cost reductions