taxonomy of an electronic procurement system
TRANSCRIPT
1
What is E-Procurement
Agenda
2
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
3
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)
6
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
9
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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1
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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3
Eprocurement process or procure to pay process
can be divided into following
Procurement planning process
Procurement process
Procure to pay method
Procurement Planning process
1
4
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.