ePROCUREMENT

By Diana Trifan

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PRESENTATION OUTLINE
•DEFINITION

•TYPES

•BENEFITS

•PITFALLS

•ADOPTON STRATEGIES
•VALUE ADDED SERVICE
•CONCLUSION

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WHAT IS ePROCUREMENT
Using the Internet to purchase goods and services,
B2B or B2C or B2G purchase and sale of supplies,
It is done with a software application that includes features
for supplier management and complex auctions.

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 TYPES OF ePROCUREMENT

There are seven types:

1. Web-based ERP (Enterprise Resource Planning),

2. e-MRO (Maintenance, Repair and Overhaul),
3. e-Sourcing,
4. e-Tendering,
5. e-Reverse auctioning,
6. e-Informing,
7. e-Market sites.

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 BENEFITS OF ePROCUREMENT

1. Increased access to markets without additional marketing efforts,

2. Businesses can focus more time on earning revenue and serving
customers,
3. Reduced cycle time,
4. Make it easier, faster, and less expensive for businesses to purchase
the goods and services they require and need,
5. Better access to information and purchasing entities,
6. Procurement managers do not need to be as highly trained or paid
because such systems are standardized and easy to learn,
7. eProcurement saves time,
8. Helps a firm organize its interactions with its most crucial suppliers

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 PITFALLS OF THE ePROCUREMENT SYSTEM

1. Smallest revenues for procurement managers,

2. Employees may refuse to use the system,
3. No plan to undertake purchasing of items that are not
available through the online suppliers,
4. Treating all areas of procurement and all products the same,
5. Failure to plan well,
6. Applying a new e-procurement system on critical items and
systems first,
7. Adapting to eProcurement need costs, ex: the cost of
training employees and getting suppliers to participate in
the e-procurement system.
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 TYPICAL ADOPTION STRATEGIES

• Slow step-by-step adopters: implement one piece of the system at a

time and slowly bring trading partners on board,

• the total replacement model: build a totally parallel system, test it,

then switch over,

• A third is to determine beforehand the specifications for all

products and services required by the business.

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eProcurement Process
 Components of eProcurement

 Content management,

 Requisitioning,

 Approval routing,

 Order management,

 Decision support.
 Business Models of eProcurement

 Model 1: Cost Saving Through Exchanges

 Model 2: Eliminate Procurement Department

 Model 3: Desk-top Purchasing

 Model 4:Direction Connection of Supply Chain

 Model 5: Procurement of Human Capital

 Procurement Example: Ordering a Pizza (0:35)
https://www.youtube.com/watch?v=Hjk55TpBfcM

Understandind Procurement and E-Procurement (4:35)

https://www.youtube.com/watch?v=rGCP2E6j6dQ

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 CONCLUSIONS

 eProcurement systems can be effective at reducing waste

and saving money,

 However, special steps must be taken to effectively

implement the system and to avoid the types of problems that

can hinder successful adoption of eprocurement systems.

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THANK YOU FOR ATTENTION!

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 REFERENCES

http://www.eprocurement.com
http://www.epiqtech.com
http://eprocurement.nc.gov
https://www.youtube.com/watch?v=rGCP2E6j6dQ
https://www.youtube.com/watch?v=Hjk55TpBfcM
https://en.wikipedia.org/wiki/E-procurement

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