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Published byWesley Robertson Modified over 9 years ago
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Ev. 1 Electronic Procurement – A Big Step Towards Transparency and Efficiency The Asian Development Bank’s Perspective Jeff Taylor, Senior Procurement Specialist
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Ev. 2 Electronic Procurement, Its Origins Its not new: Materials Requirements Planning (MRP) 1960s Electronic Point of Sale (EPOS) 1980s Organization for Data Exchange by Tele- Transmission in Europe (ODETTE) 1984 COVISNET (US Automotive/Oracle) 2000
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Ev. 3 It’s Not a Panacea The pyramids were built without it It offers little transactional value for CAPEX Toyota a global procurement benchmark using Kanban – paper Rubbish in Rubbish Out. Computers Cannot Think
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Ev. 4 There are Negatives It passes on transaction costs Requires power asymmetry to impose It does not measure absent suppliers It can be used to limit competition
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Ev. 5 Seven Types of E-Procurement Trading Models EDI Networks, few partners, simple transactions, batch processing. Business to Business Hubs, simplest e- catalogue, complex requisition and payment. 1T1 or MTM. Corporate Procurement Portals – such ADB’s CMS
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Ev. 6 Seven Types of E-Procurement Trading Models First Generation Trading Exchanges distributors/manufacturers aggregation Second Generation Exchanges integrated requisitioning, price and product discovery Third Generation Trading Exchanges, real- time fulfillment. Information for inventory Industry consortia and the virtual factory
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Ev. 7 E-procurement Benefits Pareto optimal, 80:20 Rule (main private sector driver), TCE Transparency – (main public sector driver) Standardization Data capture and spend analysis E-government and e-governance
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Ev. 8 E-procurement Challenges The Business Case Standardizing specifications Line item level, contract or unit? Commodity Coding In-house or out sourced project development? Functional Design Regulatory and Legislative Environment
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Ev. 9 E-procurement Challenges Best Fit or Custom Build Financing – supply side or demand? Integration with Existing Systems Purchasing power OS Federal Vs State
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Ev. 10 ADB Supported Initiatives Its own Consulting Procurement CMS CMS E-GEPS in the Philippines NCB Procurement in India NCB Procurement in Indonesia The Asia Pacific Procurement Initiative
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