E-PROCUREMENT
Electronic procurement or E-procurement or supplier exchange is the buy and sale of services and/or supplies via the internet. It also includes other networking systems as Enterprise Resource Planning, Electronic Data Exchange and other information. Transactions might be in the form of business-to-consumer or business-to-business negotiations.
To use e-procurement in a business organization, a software application with featured aspects for supplier management and auctions must be legally purchased. Its system is offered in a URL webpage and is made available anywhere around the globe providing tenders ease of use and convenience.
There are several steps that should be followed to implement utilization of e-procurement in an organization. First step is to develop a policy on e-procurement. Second is to summarize the business case. Third step is to orient the people that will be involved in the e-procurement system. Fourth is to appraise or assess the options and the best route to implementation. Fifth is organizing and readying the group to handle this system as well as the business. Sixth is adapting and implementing e-procurement in the business; and, the seventh and last step is to manage change in the organization.
A policy on e-procurement details the method or the technique to be used when implementing it. It should properly note down the organization’s objectives, how these objectives can be attained, and the necessary prerequisite needed to attain the objectives. This policy should also be used to instruct and give knowledge to all employees, from the highest to the lowest in rank, who will be included in the system process. It serves as a guideline for management.
The objective of procurement spend analysis is to statistically collect and evaluate the company’s buying information. These include what the company purchases, where it does its purchasing, and the volume and amount of its transactions. Information is collated both on a per department basis and then as a whole.
Its goal is to bring into focus processes and issues asking for solutions. The analysis arrived at after evaluation will serve as basis for modifications of processes, for business cases, and cost-saving measures.
Just as e-procurement is an electronic process, so the system requires providers or suppliers that are agreeable to and prepared to transact with their clients electronically. Always take into consideration that suppliers are also business entities that is on the lookout to access potential clients, bring in business at reduced costs, and requires feedback and support.
Simple technological tools can be used in lieu of manual paper-based processes. These include email, spreadsheets, the intranet and the internet.
To provide management with precise benefits analysis of e-procurement, there should be a progress measurement in place. Progress measurement relies heavily on the management culture, structure and expectations. It is important in that it gives information on the range and complications involved in executing company purchases.
As implementation of e-procurement starts, so will real resistance to the project start to arise. To minimize the problem of resistance, it is strongly recommended that stakeholders, or the people who will be affected by the system, are to be placed in active commitment from the initial stage of the process.
The administrator should be able to deal with the issues and causes of opposition, contain reactions to possible problem areas, plan for ways to sail thru adoption stage, and should be able to efficiently pass on to a stage where e-procurement is already a rooted tool in the company.
To better manage organizational or system change particularly to e-procurement, the following are strongly recommended for consideration: Obtain practical and actual support from senior management at its most initial stage. Compare existing processes against e-procurement features. Have a comprehensible objective, plan and goal for e-procurement. Adapt a plan on change management. Use various and different types of communications. Ensure that each department has a staff that understands or comprehends the details involved in e-procurement. Use free text catalogue for larger accommodations of purchases. Provide needed resources to adequately utilize e-procurement.
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