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    E Procurement 151027114919 Lva1 App6892

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    Priya Khare
    E-procurement involves the purchase and sale of supplies over the internet. It streamlines the procurement process and allows buyers to search catalogs, request quotes, and place orders online. Key benefits include reduced costs, greater efficiency, and improved access for buyers and sellers globally. While e-procurement tools replace traditional paper-based methods, risks include over-investment in tools that do not deliver value or lack of supplier participation in the online system. Proper evaluation and user input is important for successful e-procurement implementation.

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    E Procurement 151027114919 Lva1 App6892

    Uploaded by

    Priya Khare
    68 views15 pages
    E-procurement involves the purchase and sale of supplies over the internet. It streamlines the procurement process and allows buyers to search catalogs, request quotes, and place orders online. Key benefits include reduced costs, greater efficiency, and improved access for buyers and sellers globally. While e-procurement tools replace traditional paper-based methods, risks include over-investment in tools that do not deliver value or lack of supplier participation in the online system. Proper evaluation and user input is important for successful e-procurement implementation.

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    e-procurement-151027114919-lva1-app6892

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    E-procurement involves the purchase and sale of supplies over the internet. It streamlines the procurement process and allows buyers to search catalogs, request quotes, and place orders online. Key benefits include reduced costs, greater efficiency, and improved access for buyers and sellers globally. While e-procurement tools replace traditional paper-based methods, risks include over-investment in tools that do not deliver value or lack of supplier participation in the online system. Proper evaluation and user input is important for successful e-procurement implementation.

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    © All Rights Reserved
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    Download as pdf or txt
    68 views15 pages

    E Procurement 151027114919 Lva1 App6892

    Uploaded by

    Priya Khare
    E-procurement involves the purchase and sale of supplies over the internet. It streamlines the procurement process and allows buyers to search catalogs, request quotes, and place orders online. Key benefits include reduced costs, greater efficiency, and improved access for buyers and sellers globally. While e-procurement tools replace traditional paper-based methods, risks include over-investment in tools that do not deliver value or lack of supplier participation in the online system. Proper evaluation and user input is important for successful e-procurement implementation.

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    E-Procurement

    BY IMESHA PERERA
    What is E-Procurement?
    E : Electronic
    Procurement : the process of obtaining supplies, especially for an government or
    organization
    E- Procurement : the business-to-business purchase and sale of supplies and services
    over the Internet.
    Also Known as: Supplier Exchange
    Definition: E-procurement is the business-to-business purchase and sale of supplies
    and services over the Internet.
    • An important part of many B2B sites. Typically, e-procurement Web sites allow
    qualified and registered users to look for buyers or sellers of goods and services.
    • Depending on the approach, buyers or sellers may specify prices or invite bids.
    Transactions can be initiated and completed.
    • Ongoing purchases may qualify customers for volume discounts or special offers.
    E-Procurement Vs Traditional Procurement

    Traditional Internet purchasing


    Purchasing
    Need Need

    Get Search
    Approval Inform purcha- approved
    sing Department electronic catalog

    Request for Approve


    quotation online
    Get
    Approval order
    Create Purchase
    Order

    Receive in one Receive in 2 days


    week
    E-Tools that replace traditional
    procurement
     E-sourcing supports the specification phase; it identifies suppliers that can be used
    in the selection phase.
     E-tendering supports the selection phase; it facilitates the REOI and ITB/RFP
    activities, usually including support for the analysis and assessment activities.
     E-reverse auctioning supports the contract phase; it enables closing a deal with a
    supplier;
     E-ordering and web-based ERP is the process of creating and approving
    procurement requisitions, placing purchase orders, as well as receiving goods and
    services ordered, by using a software system based on the Internet.
     E-informing is not directly associated with a phase in the procurement process; it is
    the process of gathering and distributing procurement information both from and
    to internal and external parties using Internet technology.
    E-Procurement Process
    Elements of e-procurement
     request for information

     request for proposal

     request for quotation

     RFx ( Previous 3 together)


    The e-procurement value chain
    consists of:
     indent management: workflow involved in the preparation of tenders
     e-Tendering,
     e-Auctioning,
     vendor management,
     catalogue management,
     Purchase Order Integration,
     Order Status, Ship Notice,
     e-invoicing, e-payment,
     contract management
    E-Procurement Systems

     An e-procurement system manages tenders through a web site.


     This can be accessed anywhere globally and has greatly improved
    the accessibility of tenders.
     E-procurement projects are often part of the country’s larger e-
    Government efforts to better serve its citizens and businesses in the
    digital economy.
    Examples:
     Singapore’s GeBIZ
     India’s CPPP
    E-Procurement Tools (Software)
     E-procurement software may make it possible to
    automate some buying and selling.
     Companies participating expect to be able to
     control parts inventories more effectively,
     reduce purchasing agent overhead,
     improve manufacturing cycles.
     E-procurement is expected to be integrated with the
    trend toward computerized supply chain
    management.
    E-Procurement in Application
     E-Procurement is a fully capable electronic web application for purchasing goods
    and services.
     E-Procurement allows shoppers to browse online catalogs, add items to a shopping
    cart and submit the requisition electronically.
     Orders may also be created manually for complex purchases of capital
    equipment and professional services.
     Completed requisitions are routed for review or approval via electronic workflow.
     Requisitions to select suppliers included in the hosted "e-Catalog" will automatically
    generate purchase orders and transmits them to the suppliers.
     All other approved E-Procurement requisitions are routed to purchasing agents for
    Procurement review and processing into purchase orders.
    E-Procurement tools and applications
    Includes:
     electronic systems to support traditional procurement
     EDI (electronic data interchange)
     ERP systems
     internet as a support or complement to traditional procurement
     electronic mail (e-mail)
     web enabled EDI
     extensible markup language (XML)
     world wide web (www)
     internet tools and platforms that replace traditional procurement
    E-Procurement Benefits
     The primary benefit that, government agencies, service providers, and
    industry seek to achieve from
     implementing electronic procurement (e.g. e-Tender) is to reduce the
    liable cost of business and to
     deliver services that are more efficient for the community. e-Tendering is a
    key strategy in the
     development of various electronic procurement programs and initiatives,
    offering additional
     opportunities for industrial businesses, contributing to a globally
    competitive economy, and helping
     secure a sustained economic growth
    General Benefits
     Streamlines the whole tendering process.
     Provides improved and secure access to tender information.
     Brings about innovative business processes.
     Initiates greater opportunities for small and regionally based
    businesses.
     Allows downloading of electronically submitted tenders in a form
    suitable for evaluation
     purposes without having to manually re-enter data.
     Makes it easier for businesses to obtain tender documentation and
    to submit
     Cost Effective, Fast and Efficient
    E-Procurement Risks
     missing opportunities to implement strategies that improve procurement
    management without the need for investment in e-procurement: because many
    of the benefits ascribed to e-procurement may be achieved simply by improving
    procurement practice.
     over-investment in e-procurement tools that do not deliver the expected
    benefits: arises when there has been inadequate evaluation of the implications
    of the adoption or enhancement of e-procurement tools. The risk that users will
    not accept an e-procurement tool is another common risk. This risk often arises
    where users have not been adequately consulted about the adoption or
    enhancement of particular tools.
     On the supply side, there is a risk that suppliers will not cooperate with the use of
    e-procurement tools. For example, some suppliers are sufficiently powerful to insist
    on the use of paper-based systems. Others may not have access to affordable
    internet based technology that would give them access to the e-procurement
    tools of purchasers. In markets that are already competitive with low profit
    margins, suppliers may choose not to participate in e-reverse auctions.
     Normal methods of risk assessment and management should be applied during
    the development of business cases for e-procurement development or
    enhancement.
    Thank You!

    The End.

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