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Lecture 28

This document provides information about e-procurement. It begins with listing the course objectives and outcomes. It then defines e-procurement as the business-to-business purchase and sale of supplies and services over the Internet. It discusses how e-procurement utilizes electronic tools like e-sourcing, e-tendering, and e-reverse auctioning to replace traditional procurement processes. It also outlines the value chain and elements of an e-procurement system. Key benefits highlighted include reduced costs, more efficient processes, and opportunities for businesses.

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14 views26 pages

Lecture 28

This document provides information about e-procurement. It begins with listing the course objectives and outcomes. It then defines e-procurement as the business-to-business purchase and sale of supplies and services over the Internet. It discusses how e-procurement utilizes electronic tools like e-sourcing, e-tendering, and e-reverse auctioning to replace traditional procurement processes. It also outlines the value chain and elements of an e-procurement system. Key benefits highlighted include reduced costs, more efficient processes, and opportunities for businesses.

Uploaded by

silentsoul05
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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INSTITUTE –University School of

Business
DEPARTMENT -Management
M.B.A
Supply Chain & Logistics Management 22BAT-622
Faculty Name :Mr. Sumit Verma

Lecture – 28 : E-Procurement

UNIT-2: Supply
DISCOVER . LEARN . EMPOWER
Chain Integration

1
E-Procurement

Course Objective Course Outcome


CO Title Level CO Title Level
Number Number
CO1 At the completion of this course, the Understand CO1 Design competition strategies, Understand
student should be able to including costing, pricing, product
understand the concepts related to differentiation, and market
SCM. . environment according to the
natures of products and the
CO2 Students will be able to design and Apply structures of the markets.
study performance of supply
networks and processes in different CO2 Understand the links between Apply
business contexts production costs and the economic
models of supply.
2

CO3 To understand the global supply CO3 Understand how different degrees of Analyze
Analyze
chains & risks thereof competition in a market affect
pricing and output
Topic – 28
E-Procurement

Source : Shutterstock 3
E-
Procurement
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.
E-Procurement

Also Known as: Supplier Exchange

Definition: E-procurement is the business-to-business

purchase and sale of supplies and services over the

Internet.
E-Procurement

• 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..
Traditional Purchasing vs Internet
Purchasing
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


tendering activities, usually including support for the
analysis and assessment activities.
E-Tools that replace traditional
procurement
 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-Tools that replace traditional
procurement

 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
Elements of E-Procurement

 Request for information

 Request for proposal

 Request for quotation

 RFx ( Previous 3 together)


Value Chain of e-procurement

 Indent management: workflow involved in the preparation of


tenders

 e-Tendering

 e-Auctioning

 Vendor management

 Catalogue management,
Value Chain of e-procurement

 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.
E-Procurement Tools

 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.

 Procurement review and processing into purchase orders.


E-Procurement tools and applications

 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)


E-Procurement tools and applications

 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-Procurement Benefits

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.
Resources

1. Essentials of Supply Chain Management (Essentials


Series) Paperback – Import, 12 August 2011 by Michael
H. Hugo

2. Principles and Practice of Supply Chain


Management Hardcover – Import, 3 June 2019
By Judy Dickens

3. Supply chain design and management: Strategic and


tactical perspectives by Manish Govil and Jean-Marie
Proth
24
Blackboard
Assessment Pattern

Components HT-1 HT-2 Assignment Surprise Business GD Forum Attendance Scaled


Test Quiz Marks

Max. Marks 10 10 6 4 4 4 2 40

25
THANK YOU

For queries
Email:
[email protected]

26

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