e-Procurement
eProcurement is the term used to describe the use of electronic methods in every stage of the on-line purchasing process. Companies implement eProcurement systems to streamline and automate their purchasing process, eliminate maverick buying, reduce the cost of products, reduce the number of suppliers and reduce the cost per transaction. Electronic enablement of the purchasing process can be more specifically identified as:
- eSourcing - for contractual processes. Tools include eTendering, eRFQs (Request for Quotations/evaluations) and eAuctions.
- eProcurement - for transactional processes.Tools include marketplaces using techniques such as eCatalogues and punch-out.
- ePayment - Tools include eInvoicing and self-billing.
- eProcurement solutions have broad appeal because they span across the market sectors and industries. From manufacturers to online retailers, all firms perform some sort of purchasing functions. Firms who have implemented eProcurement systems have been enjoying significant savings, often in the range of millions of dollars. These savings improve the bottom line.
The benefits of eProcurement include:
- Modernization
- Efficiency improvements (the way people work)
- Improved commercial relationships with suppliers
- Reduce costs for suppliers dealing with government and business
- Improve departments’ ability to manage their supply chain more efficiently
Another variation of eProcurement is to use the services provided by eMarketplaces. An e-marketplace or an e-marketsite can either be:
- a retail or B2B web site for a specific product or industry (such as steel, chemicals, office supplies, etc.) or
- many companies implementing and sharing eProcurement. In this case, many companies may share the eProcurement technology and connect to their shared suppliers in order to recognize greater savings. Examples of e-marketplaces are Covisint for the automotive industry and Pantellos for the energy and utilities industry.
Sites:
Alibaba.com
Buyerzone.com
Supplier-Match.com
