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E Procurement


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It is on E Procurement of materials. Presented by Nikhil Soni and Mayank Sharma, of FMG-18A, FORE School of Management

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E Procurement

  1. 1. E-Procurement<br />By: Nikhil Soni – 91038<br /> Mayank Sharma – 91031<br />
  2. 2. Traditional Procurement Cycle<br />Pay<br />Order<br />Receive<br />Source<br />Request<br />Analytics<br />Procurement cycle starts from Raising of the requirements for an <br />item or a service and ends only after settlement of supplier <br />payments.<br />
  3. 3. Traditional Procurement Process<br />
  4. 4. Constraints<br />
  5. 5. For IBM,<br />The acquisition of direct and indirect products and services using the internet and new technologies to facilitate a seamless, end-to-end stream of strategic procurement activities by connecting buyers and suppliers.<br />
  6. 6. For IBM,<br />The inclusion of tools and business intelligence systems that enable improved responsiveness and analysis within the procurement organization.<br />
  7. 7. <ul><li>For IBM,
  8. 8. The linkages between suppliers and internal systems across the supply chain.</li></li></ul><li>Objectives<br />
  9. 9. E-Procurement’s Popularity Trends<br />
  10. 10. Topics for Discussion<br />
  11. 11. Web-Based ERP<br />Creating and approving purchasing requisitions, placing purchase <br />orders and receiving goods and services by using a software system <br />based on Internet technology.<br />Product Vendors – SAP, Oracle, The SAGE Group<br />
  12. 12. Web-Based ERP<br />
  13. 13. Web-Based ERP<br />
  14. 14. E-MRO - Maintenance, Repair and Overhaul<br />The same as web-based ERP except that the goods and services <br />ordered are non-product related MRO supplies.<br />
  15. 15. E-Sourcing<br />Identifying new suppliers for a specific category of purchasing <br />requirements using Internet technology.<br />
  16. 16. E-Sourcing Benefits<br />
  17. 17. Reverse Auctioning<br />Using Internet technology to buy goods and services from a number <br />of known or unknown suppliers.<br />
  18. 18. E-Tendering<br />Sending requests for information and prices to suppliers and <br />receiving the responses of suppliers using Internet technology.<br />Tender<br /> Preparation<br />Tender<br /> Publishing<br />Bidder<br /> Response<br />Bid<br /> Evaluation<br />Contract<br /> Award<br />Indent<br />To Tender<br />Request<br />e-Tendering Solution<br />An e-Tendering solution primarily facilitates the ‘Tendering Process’ <br />and may cover from Indenting of Requirements to the placing of <br />contract/PO<br />
  19. 19. E-Tendering<br />Benefits to Buyers<br /><ul><li>Cost Reduction
  20. 20. New Supplier Discovery
  21. 21. Close Monitoring of Activities/ Vendor Performance
  22. 22. Rich MIS and Analytics
  23. 23. Standardized formats and Uniform tendering practices </li></ul>Benefits to Suppliers<br /><ul><li> Increased visibility/ Less artificial barriers
  24. 24. Increased business opportunities,
  25. 25. Greater degree of transparency
  26. 26. Cycle time reduction in participation and award of Contract
  27. 27. Supplier Enablement and Ease of Participation</li></li></ul><li>E-Tendering for CWG (Delhi Govt.)<br />
  28. 28. E-Informing<br />Gathering and distributing purchasing information both from and to <br />internal and external parties using Internet technology.<br />
  29. 29. E-Marketsites<br /><ul><li>Expands on Web-based ERP to open up value chains.
  30. 30. Buying communities can perform the following:</li></li></ul><li>E-Procurement Cons<br />
  31. 31. IBM’s SupplyPortal<br />
  32. 32. E-Procurement at Siemens<br />
  33. 33. Siemens – Click2Procure<br />