150 likes | 355 Views
E-Procurement. Purchasing and Procurement What do we do?. Acquire goods and services at “best value” Cost Delivery Payment terms Service Additional benefits?. Purchasing and Procurement What do we do?. Ensure Transparency Document the purchase for audit
E N D
Purchasing and ProcurementWhat do we do? • Acquire goods and services at “best value” • Cost • Delivery • Payment terms • Service • Additional benefits?
Purchasing and ProcurementWhat do we do? • Ensure Transparency • Document the purchase for audit • Ensure purchasing guidelines are followed • Ensure government legislation is followed • Ensure stakeholders are protected
Purchasing and ProcurementWhat do we do? • Act as a Liaison • Help guide managers to best results • Make managers aware of legislative requirements • Provide input in to policy to ensure the organization is protected • Research opportunities for the benefit of the organization (e.g. Look into buying groups)
The Supply Chain A network of parties or companies involved in the production and/or distribution of goods. Including: • Raw Materials Vendors • Transportation Companies • Wholesalers • Distributors • End Users
The Supply Chain Why is it Important? • Maps out areas of strategic importance for the organization • Target links and activities within the supply chain for strategic activities including: • Strategic partnerships • Increased information sharing and coordination of efforts • Streamlining of processes; E-Procurement, Just In Time (JIT), Lean Manufacturing
E-Procurement What is it? • Purchasing facilitated by the internet • Can utilized for: • Business to Business (B2B) • Business to Customer (B2C) • Business to Government (B2G)
Types of E-Procurement • E-Ordering and Web-Based ERP • Example: Monk Office MyClips, Dell Premier, MyNIC • Supports B2B, B2G, B2C • E-Tendering • Example: BC Bid • Supports B2G • E-Auctions • Reverse Auction • Supports B2G • E-Sourcing • Example: Alibiba.com • Supports B2B, B2G
Benefits of E-Procurement • Faster Procurement • Streamlined purchasing processes • Goods are ordered quicker and received quicker • Enables self serve options • Cheaper Procurement • Savings for the vendor which are passed on to us • Lower transaction costs • Transparent Procurement • Opportunities posted for entire vendor community • Access to Information • Pricing • Shipping details • Payment Information
Drawbacks and Challenges of E-Procurement • Cultural Change • Overcoming fear of technology • Overcoming barriers to change • Training Costs • Educating employees • System Downtime • What to do when the system fails