This document discusses e-procurement at IBM and Siemens. It begins by defining e-procurement as using the internet and new technologies to facilitate strategic procurement activities by connecting buyers and suppliers. It then discusses how e-procurement provides tools for improved analysis and linkages across the supply chain. The document also summarizes various e-procurement strategies used at IBM and Siemens like online purchasing systems, e-sourcing, e-tendering, and procurement marketplaces. It concludes by noting some potential cons of e-procurement.

1. E-ProcurementBy: Nikhil Soni – 91038 Mayank Sharma – 91031

2. Traditional Procurement CyclePayOrderReceiveSourceRequestAnalyticsProcurement cycle starts from Raising of the requirements for an item or a service and ends only after settlement of supplier payments.

3. Traditional Procurement Process

4. Constraints

5. For IBM,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.

6. For IBM,The inclusion of tools and business intelligence systems that enable improved responsiveness and analysis within the procurement organization.

7. For IBM,

8. The linkages between suppliers and internal systems across the supply chain.Objectives

9. E-Procurement’s Popularity Trends

10. Topics for Discussion

11. Web-Based ERPCreating and approving purchasing requisitions, placing purchase orders and receiving goods and services by using a software system based on Internet technology.Product Vendors – SAP, Oracle, The SAGE Group

12. Web-Based ERP

13. Web-Based ERP

14. E-MRO - Maintenance, Repair and OverhaulThe same as web-based ERP except that the goods and services ordered are non-product related MRO supplies.

15. E-SourcingIdentifying new suppliers for a specific category of purchasing requirements using Internet technology.

16. E-Sourcing Benefits

17. Reverse AuctioningUsing Internet technology to buy goods and services from a number of known or unknown suppliers.

18. E-TenderingSending requests for information and prices to suppliers and receiving the responses of suppliers using Internet technology.Tender PreparationTender PublishingBidder ResponseBid EvaluationContract AwardIndentTo TenderRequeste-Tendering SolutionAn e-Tendering solution primarily facilitates the ‘Tendering Process’ and may cover from Indenting of Requirements to the placing of contract/PO

19. E-TenderingBenefits to BuyersCost Reduction

20. New Supplier Discovery

21. Close Monitoring of Activities/ Vendor Performance

22. Rich MIS and Analytics

23. Standardized formats and Uniform tendering practices Benefits to Suppliers Increased visibility/ Less artificial barriers

24. Increased business opportunities,

25. Greater degree of transparency

26. Cycle time reduction in participation and award of Contract

27. Supplier Enablement and Ease of ParticipationE-Tendering for CWG (Delhi Govt.)