Electronic Procurement (eProcurement) Daniel Greenbank

What is eProcurement?  More than just a system for making purchases,  Management of all procurement activities,  Generally Online,  Can connect companies and their business processes,  Done with a software application.

Types of eProcurement  Six main types;  Web-based ERP (Electronic Resource Planning),  e-MRO (Maintenance, Repair and Operating),  e-sourcing,  e-tendering,  e-reverse auctioning,  e-informing.

Benefits of eProcurement  Helps with the decision-making process,  Helps reduce inventory levels,  Allows multiple access levels and permissions when purchasing,  Getting the right product, from the right supplier, at the right time, for the right price and the right quantity,  Reduces waste and saving time and money.

Drawbacks of eProcurement  Reluctance from supplier to participate in the system,  Expect an immediate return on investment but do not receive it,  Vendors have the power to take advantage of the customer.

Making the switch to eProcurement  Most companies who desire to make the switch fall into two categories;  The first are the slow step-by-step adopters,  The second follow the total replacement model.

eProcurement Software  Automate some of the buying and selling processes,  JIT purchasing,

How does eProcurement software Work  Allow qualified and registered users to look for buyers or sellers of goods and services.

Benefits of Adopting eProcurement Software  Consolidate multiple information systems in a single place,  Smooth out relationship glitches with preferred suppliers,  Establishes pricing controls and buying controls,  JIT (Just In Time).

eProcurement Software Example eProcurement Software Example (Mikrofax)

Summary  A well implemented eProcurement systems saves time and money and reduces waste and errors,  Getting your suppliers ‘on board’ is the key,  It is the future!

Any Questions???