This blog is with respect to one of the latest techniques
that I have come across for effectively managing supply chain for a company.
The blog written is based on one of the articles that I have come across this
week
‘Electronic procurement (E-procurement) is defined as
business-to-business or business-consumer or business-to-government purchase
and sale of supplies, work, and services through the purchasing practice that
utilizes electronic commerce to identify potential sources of supply, to
purchase goods and services, to transfer payment, and to interact with
suppliers was adopted for this research because it is comprehensive.’ Analysts
and supply chain managers agree that the intensely competitive nature of
today’s business environment makes the effective use of e-procurement an
operational necessity for companies. Some of the noted benefits include
increased collaboration, between buyers and suppliers, reduced personnel
requirements, improved coordination, reduced transaction costs, shorter
procurement cycles, lower inventory levels, and greater transparency, resulting
in lower variability.
For research-intensive companies, there are strategic and
operational benefits associated employing e-procurement services. E-procurement
can help develop purchasing practices that lead to greater discounts and better
service from their suppliers. This in turn results in accelerated flow of
important information and reducing the administrative tie for ordering.
E-procurement also improves relationships with their suppliers (buyer-seller relationships)
and reduced errors rates in orders because orders are less likely to be delayed
or the wrong goods delivered due to low transaction errors.
Certain operational benefits are also involved in using
e-procurement. It improves control over finances making it easier to match
orders, eliminate paperwork resulting in greater savings. It can also reduce
inventory levels and the costs associated with inventory, shorten delivery times
by saving time associated with waiting for documents in the mail and eliminate
time zone constraints since e-procurement is 24*7.
Lot of companies and even governments has made use of this
e-procurement system to good use. For example, the Philippines government
through its procurement services adopted the e-procurement system to improve
the efficiency and increase transparency in government procurement.
Over the past few years, supply chains have been rattled by
natural calamities, product contamination in regulated industries, political
unrest, the continued threat of terrorism, and social instability in certain
countries as a result of economic uncertainty and a loss of jobs. Also as a
structure supply chains are changing and strategies adopted must be flexible in
advent of increased risk, weakness and uncertainty.
Executives and supply chain managers are looking to optimize
their efficiency and deliver increased value from limiting funding. With that
in mind, how else could the supply chain managers make use of this
e-procurement to optimize their supply chain and reduce variability?
Sources:
E-Procurement is a good way of interchanging data on internet and optimizing supply chain management. The e-procurement value chain consists of indent management, eTendering , eAuctioning, vendor management, catalogue management.
ReplyDeleteBenefits of E-procurement
Thanks for this nice and useful information on E-Procurement. There are many E-procurement solution out there but I personally recommend Lotus Procure.
ReplyDelete