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Technology and E-Commerce Marketing 3860 – Purchasing July 14, 2004 Kimball Bullington, Ph.D. Associate Professor of Operations Management Middle Tennessee State University
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What Items are Candidates for E-Commerce?
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Critical 2: Special Situations Critical 1: Long-term Relationship Non-Critical 1: Contractual High Low High Risk Annual Spend Supplier Characterization Matrix Non-Critical 2: Transactional 80% of $ 20% of suppliers
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Recognition of Need MRP Order Release Reorder point activated release User issued request Time-based release
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Specify / Describe Need Reference to standard item / service number Reference to existing item / contract / PO User specified detailed description
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Determine Sourcing Options System comparison to open, blanket/system, or other contract System-generated list of qualified sources Issue e-RFQ or e-RFP
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Establish Price & Terms Reference to open blanket Generate history of past prices paid Reverse e-auction E-marketplace Access supplier’s online catalog
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Prepare Purchase Order System automatically generates Use software within system to fill in blanks E-procurement system generates
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Place Purchase Order Transmit via EDI Transmit via e-procurement application
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Follow-up on P.O. System-generated exception reporting for past-due orders System-generated exception reporting for discrepancies in receiving, quality, quantity, price, etc.
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Receive / Inspect Scan (RFID) bar-coded items received directly into system Accept entire PO as received if no exceptions Manually enter receiving, system compares to P.O.
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Invoice Approval & Payment Automatically generate check at appropriate time if no exceptions Alert of discrepancies between PO and receiving Electronic funds transfer Electronic bill presentment and payment
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Maintain Records Purchasing online database
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Technology and E-Commerce Marketing 3860 – Purchasing July 14, 2004 Kimball Bullington, Ph.D. Associate Professor of Operations Management Middle Tennessee State University
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