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Slide 7.1 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Chapter 7 E-procurement
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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.
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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?
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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)
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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
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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
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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
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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
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Slide 7.9 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 Figure 7.4 E-mail notification of requisition approval Source: Tranmit plc
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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
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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
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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
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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
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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
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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
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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 (www.supply2.gov.uk)
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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 2000. Copyright © 2000 by the Harvard Business School Publishing Corporation, all rights reserved
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