eProcurement assists in streamlining the traditional procurement process of sourcing and purchasing goods. Through the efficient use of information technology, the quality and efficiency of the procurement process can be greatly improved.
Benefits
Using eProcurement provides many benefits, such as reduced purchasing costs, enhanced communications with suppliers, higher profit margins and improved efficiency of the purchasing process. Other points worth considering are:
- Orders can be transmitted electronically rather than using a courier, fax, phone or traditional post;
- There is improved efficiency and information flow along all links
of the supply chain resulting in lower costs for the final product,
which has the potential to enhance sales;
- There is greater transparency because buyers can search for
different products from various vendors in different cities or states,
comparing prices as they go; and
- Customers can procure goods at their convenience without ever having to leave the office.
Supply Chains
A supply chain is an integrated network of suppliers, transporters and retailers involved in transforming raw materials into a value-added product for consumers.
No matter where your business operates in the supply chain, you are sure to find one or more of the following technologies or techniques useful in streamlining the procurement process.
Buy-Side Tools
Buy-side tools are either Internet-based or standalone applications used to browse and order goods from supplier catalogues, send and receive a request for quote (RFQ) or send and receive a request for tender (RFT).
These tools enable you to manage and track orders. They can be used to automate other common functions such as requisitioning, payment approval and asset management.
In addition, they assist in reducing associated costs and eliminate order errors when procuring goods.
Supply-Side Tools
Supply-side tools improve the efficiency and flexibility of the supplier side of the procurement process. These tools speed up the design and implementation of supplier catalogues. They can be hosted internally or on an eMarket website.
eMarkets improve procurement processes by putting suppliers in touch with buyers through a central hub. They have a specific business focus as opposed to customer portals that are designed for general-purpose users.
eMarkets such as Tasmania Business Online (TBO) allow suppliers to host product catalogues from which buyers source items and raise purchase orders on the spot. Suppliers are then able to acknowledge any orders and arrange delivery.
Shopping Portals and Malls
Shopping portals and malls provide a range of services, including reviews, news and links to various merchants from a central site.
Because portals are affiliated with their own customer base, they can be somewhat restrictive in their offerings.
Shopping Bots and Intelligent Agents
Shopping bots and intelligent agents are specialised pieces of software that help you find information on products, including price and availability.
They provide a means of comparison-shopping between different suppliers.
As shopping agents are usually limited to a set number of stores, such as those affiliated with a shopping portal, they may not visit every store on the Internet.
Track and Trace
Track and trace, usually provided as a service from a supplier's delivery service, allows convenient tracking of goods in transit. This is easily achieved by going to the deliverer's website and entering your consignment or tracking number on the appropriate form.
Resources
- Trends in Electronic Procurement: www.cmis.csiro.au/Reports/procurement.pdf
- Tasmania Business Online: www.tbo.com.au
Buy-Side Tools:
- Microfax: www.mikrofax.com/pages/products.htm
- Palmas: www.palmasdev.com/index.html
- Dynamic Software, Inc: www.dynamic-sw.com
