E-Procurement: The Basics
What is e-procurement?
The information and communication technology intervention in the purchasing domain of an organization
What is the primary difference between direct and indirect e-procurement?
Direct e-procurement involves purchases directly related to core business activities, while indirect e-procurement involves purchases for supporting functions or overhead expenses.
What is an example of an E-marketplace?
Any E-marketplace
How do e-business processes contribute to cost reduction?
E-business processes reduce transaction costs, optimize operations, and leverage economies of scale for bulk purchasing.
What is a challenge organizations often face when implementing an e-procurement system
Low levels of compliance from individual users
Name a sub process of e-procurement.
Any of these apply: e-requisition, e-notification, e- access, e-submission, e-evaluation, e-awarding, e-ordering, e-invoicing and e-payment
Name one example of a product commonly procured through direct e-procurement.
Raw materials for manufacturing, such as steel or plastic components.
How is cost reduced in E-Sourcing?
Lower procurement costs through competitive bidding and efficient supplier selection.
What role does data utilization play in value creation through e-business processes?
Data utilization enables data-driven decision-making, predictive analytics, and continuous improvement of e-business processes.
Name all four non-financial performance measures used to determine the success of an e-procurement system?
Transparency, Efficiency, Managerial Effectiveness, Coordination
What cost does e-procurement reduce?
Transaction cost
What challenges might businesses face when implementing direct e-procurement systems?
Challenges include managing supplier relationships, ensuring quality control, and integrating e-procurement systems with existing processes.
What is RFx (Request for x)?
Sending out requests for information (RFIs), requests for proposals (RFPs), or requests for quotations (RFQs) electronically.
How do e-business processes facilitate innovation within organizations?
E-business processes support agile development, foster collaboration, and provide data-driven insights that drive innovation initiatives.
Name a barrier to implementation and describe how you would overcome
Example:
Barrier: Coordination challenges between buyers and suppliers operating in different countries.
Solution: Choose a third party platform that supports multi-language, multi-currency, and multi-country procurement operations.