taxonomy of an electronic procurement system

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What is E-Procurement

Agenda

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Taxonomy of e-procurement

Benefits of e-procurement

How e-procurement system fits in ERP

Flow chart of e-procurement

E-procurement process

E-procurement

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E sourcing/e-procurement

E-RFX (RFP Management)

Vendor Relationship management

system

E-auction (Reverse and forward auction)

Web based ERP

ERP is an Enterprise level program for resource

planning. In the simplest terms, all

departments/modules of an organization like finance,

HR, Marketing, manufacturing etc. starts interacting

with each other and share data which help in planning

and implementing organization direction and future

plans and resource optimization.

E sourcing/e-procurement

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E sourcing/E-procurement is the business-to-

business or business-to-consumer or business-to-

government purchase and sale of supplies, work,

and services through the Internet as well as other

information and networking systems, such as

electronic data interchange and enterprise

resource planning.

eRFX (RFP management)

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eRFX is a collaborative process of creating RFP

(Request for proposal), RFQ(Request for quotation) or

RFI (Request for information). The online system helps

in collaborating with various stakeholders and makes it

easy for supplier to respond. The online system makes

it easy to track, audit and edit an RFX document.

E-auction

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E-auction is the process of conducting Auctions i.e.

Reverse and forward auction using an online

platform.

E-auction makes it easy for the supplier to respond

online. The auction is conducted in a simulated

environment using internet.

E-auction has various types- Most common are

reverse and forward auction.

Reverse auction

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Reverse auction is opposite of auction. In reverse

auction the supplier is supposed to respond to an

auction.

The buyer will quote a starting price of the

product he/she wants to purchase and the

supplier who quotes the lowest prices gets the

order. Prices goes down in reverse auction.

Forward auction

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Forward auction is regular option where the seller

will put his product for sale and the buyer who

quotes the best price gets the product.

In a B2b forward auction is used for scrap sales,

selling old machinery etc.

Key benefits of E-procurement

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Improved management information of purchasing

Improved transparency during purchasing process

Standardized and streamlined purchasing

Spend control and better use of corparate contacts

Budget holder have visibility and hands-on control

Supplier bills are paid on time

Reduction paper work

Improved customer service

Position of e-procurement system in an ERP system

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Database

A cloud based

E-Procurement

system

Intermediary

System

Manufacturing

system Financial

SystemSales System

Purchase and

storage

modules

E-procurement flow chart

E-Procurement Process

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Eprocurement process or procure to pay process

can be divided into following

Procurement planning process

Procurement process

Procure to pay method

Procurement Planning process

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Spend and requisition analysis

Supplier relationship management

E-Auctions

E-RFXs

RFI- request for information

RFP- request for proposals

RFQ- request for quote

Quote analysis and PO generation

Procurepack E-procurement solutions

Procurepack is a cloud-based Erfx management

solutions, Vendor relationship management, E-

auction and contract management solutions.

Our clients include Samsung India, KPMG, Netplast

among others.

Thanks

Visit Procurepack.com for more

information on e-procurement/

e-sourcing.