Slide 7.1 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Chapter 7 E-procurement

Slide 7.2 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Learning outcomes Identify the benefits and risks of e-procurement Analyze procurement methods to evaluate cost savings Assess different options for integration of organizations’ information systems with e-procurement suppliers.

Slide 7.3 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Management issues What benefits and risks are associated with e-procurement? Which method(s) of e-procurement should we adopt? What organizational and technical issues are involved in introducing e-procurement?

Slide 7.4 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 How important is procurement? We estimate that for every dollar a company earns in revenue, 50 cents to 55 cents is spent on indirect goods and services – things like office supplies and computer equipment. That half dollar represents an opportunity: By driving costs out of the purchasing process, companies can increase profits without having to sell more goods. Hildebrand (2002)

Slide 7.5 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 The 5 rights of E-procurement at the right price delivered at the right time are of the right quality of the right quantity from the right source. Baily et al., 1994

Slide 7.6 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Figure 7.1 Key procurement activities within an organization

Slide 7.7 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Figure 7.2 Electronic procurement system Source: Tranmit plc

Slide 7.8 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Figure 7.3 Use of different information systems for different aspects of the fulfilment cycle

Slide 7.9 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Figure 7.4 notification of requisition approval Source: Tranmit plc

Slide 7.10 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Figure 7.5 Document management software for reconciling supplier invoice with purchase order data Source: Tranmit plc

Slide 7.11 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Figure 7.6 The three main e-procurement model alternatives for buyers

Slide 7.12 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Table 7.6 Assessment of the procurement model alternatives for buyers

Slide 7.13 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Figure 7.7 Integration between e-procurement systems and catalogue data

Slide 7.14 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Figure 7.8 An online catalogue of items for purchase Source: Tranmit plc

Slide 7.15 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Figure 7.9 Ford supplier portal provided by Covisint Source: Covisint.com

Slide 7.16 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Figure 7.10 Supplier Route to Government Portal (

Slide 7.17 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Table 7.7 Types of B2B marketplaces identified by Kaplan and Sawhney (2000) with examples Source: Adapted and reprinted by permission of Harvard Business Review from table on p. 99 from ‘E-hubs: the new B2B marketplaces,’ by Kaplan, S. and Sawhney, M., in Harvard Business Review, May–June Copyright © 2000 by the Harvard Business School Publishing Corporation, all rights reserved