E-procurement (electronic procurement) is the B2B in purchase and sale of supplies, work and services through the internet as well as other information and networking systems, such as EDI and ERP. Typically, e-procurement Web sites allow qualified and registered users to look for buyers or sellers of goods and services. Depending on the approach, buyers or sellers may specify costs or invite bids. Transactions can be initiated and completed.
E-procurement software may make it possible to automate some buying and selling. Companies participating expect to be able to control parts inventories more effectively, reduce purchasing agent overhead, and improve manufacturing cycles. E-procurement is expected to be integrated with the trend toward computerized SCM. Well-managed e-procurement helps reduce inventory levels. Knowing product numbers, bid prices and contact points can help businesses close a deal while other suppliers are struggling to gather their relevant data.
In order to implement and firmly establish such a solution successfully in the enterprise, it is essential that the eProcurement system offers an easy interface, allowing all participants in the supply chain including suppliers, manufacturers and buyers to participate in the system.
Additional resources:
http://en.wikipedia.org/wiki/E-procurement
E-procurement software may make it possible to automate some buying and selling. Companies participating expect to be able to control parts inventories more effectively, reduce purchasing agent overhead, and improve manufacturing cycles. E-procurement is expected to be integrated with the trend toward computerized SCM. Well-managed e-procurement helps reduce inventory levels. Knowing product numbers, bid prices and contact points can help businesses close a deal while other suppliers are struggling to gather their relevant data.
In order to implement and firmly establish such a solution successfully in the enterprise, it is essential that the eProcurement system offers an easy interface, allowing all participants in the supply chain including suppliers, manufacturers and buyers to participate in the system.
Benefits:
- Reduce operational cost (e.g : building rent, paper usage). E-procurement even can run from home.
- Well-control inventory level.
- Efficient search of products and alternative choice.
- Shorter order and delivery time.
- Monitoring of the suppliers and their product portfolio.
- Electronic purchase order completion in back-end system.
- Improved procurement process automation and control.
- Lowered cost of supplier participation.
Additional resources:
http://en.wikipedia.org/wiki/E-procurement
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