Electronic ProcurementElectronic Procurement(eProcurement)(eProcurement)

Daniel Greenbank 2658455

What is eProcurement?What is eProcurement?

More than just a system for making More than just a system for making purchases,purchases,

Management of all procurement activities,Management of all procurement activities, Generally Online,Generally Online, Can connect companies and their Can connect companies and their

business processes,business processes, Done with a software application.Done with a software application.

Types of eProcurementTypes of eProcurement

Six main types;Six main types; Web-based ERP (Electronic Resource Web-based ERP (Electronic Resource

Planning),Planning), e-MRO (Maintenance, Repair and Operating),e-MRO (Maintenance, Repair and Operating), e-sourcing,e-sourcing, e-tendering,e-tendering, e-reverse auctioning,e-reverse auctioning, e-informing.e-informing.

Benefits of eProcurementBenefits of eProcurement

Helps with the decision-making process,Helps with the decision-making process, Helps reduce inventory levels,Helps reduce inventory levels, Allows multiple access levels and permissions Allows multiple access levels and permissions

when purchasing,when purchasing, Getting the right product, from the right supplier, Getting the right product, from the right supplier,

at the right time, for the right price and the right at the right time, for the right price and the right quantity,quantity,

Reduces waste and saving time and money.Reduces waste and saving time and money.

Drawbacks of eProcurementDrawbacks of eProcurement

Reluctance from supplier to participate in Reluctance from supplier to participate in the system,the system,

Expect an immediate return on investment Expect an immediate return on investment but do not receive it,but do not receive it,

Vendors have the power to take Vendors have the power to take advantage of the customer.advantage of the customer.

Making the switch to eProcurementMaking the switch to eProcurement

Most companies who desire to make the Most companies who desire to make the switch fall into two categories;switch fall into two categories; The first are the slow step-by-step adopters,The first are the slow step-by-step adopters, The second follow the total replacement The second follow the total replacement

model.model.

eProcurement SoftwareeProcurement Software

Automate some of the buying and selling Automate some of the buying and selling processes,processes,

JIT purchasing,JIT purchasing,

How does eProcurement software How does eProcurement software WorkWork

Allow qualified and registered users to Allow qualified and registered users to look for buyers or sellers of goods and look for buyers or sellers of goods and services.services.

Benefits of Adopting eProcurement Benefits of Adopting eProcurement SoftwareSoftware

Consolidate multiple information systems Consolidate multiple information systems in a single place,in a single place,

Smooth out relationship glitches with Smooth out relationship glitches with preferred suppliers,preferred suppliers,

Establishes pricing controls and buying Establishes pricing controls and buying controls,controls,

JIT (Just In Time).JIT (Just In Time).

eProcurementeProcurement Software Example Software Example

((MikrofaxMikrofax))

SummarySummary

A well implemented eProcurement A well implemented eProcurement systems saves time and money and systems saves time and money and reduces waste and errors,reduces waste and errors,

Getting your suppliers ‘on board’ is the Getting your suppliers ‘on board’ is the key,key,

It is the future!It is the future!

Any Questions???Any Questions???