Monday, September 22, 2014

Importance of Electronic Procurement for Businesses

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Today's highly competitive business world requires the corporations to continuously look for IT solutions. It’s important for businesses to improve their efficiency of business processes & cut cost of operations to enhance their margin ratios. Businesses undergo invariable pressure to advance their bottom lines irrespective of increase in their top line.

In such economical frenzy scenario, businesses switch to e-procurement solutions which give myriad benefits along with improvement in time-to-market mechanisms & reduction in operating costs to enhance profit margins. E-procurement is an essential part of Purchasing & Materials Management for businesses.

In this intuitive piece of article, you’ll learn how e-procurement helps businesses avoid costly mistakes & maintain their competitive edge thus avoiding risk of extinction.

First, a quick brief about electronic procurement or e-procurement-

E-procurement in simple terms assists businesses to enhance efficiency in 3 following aspects-
    1)   Sourcing
    2)   Negotiations with suppliers
    3)   R&D co-ordination

The above 3 are crucial factors for any business. E-procurement helps firms to achieve the respective goals efficiently using internet & electronic market. The respective transactions can occur between business-to-business (B2B), business-to-customer (B2C) and business-to-government scenarios.
E-procurement helps to co-ordinate procurement activities online. Presutti in 2003 defined e-procurement as all the technologies which enable buying online.

Knudsen in 2003 included further elements into e-procurement which are-
  •       E-sourcing 
  •    E-tendering
  •       E-informing
  •    E-reverse
  •       E-MRO
  •    E-Auctions
  •    Web-based enterprise resource planning (ERP)

Thus e-procurement has now become an essential part of the Supply Chain Management contributing to invariable efficiencies through its e-procurement software, B2B & B2C market exchanges & purchasing consortia.
The elements of e-procurement consist of-

RFx refers to the above 3 elements put together & eRFx is the software used to manage RFx projects.

Click to read 3 crucial benefits of e-procurement enabling businesses to enhance their bottom lines.

 Note- E-procurement is one essential part of Purchasing & Materials Management. Indian Academy of Management is conducting a practical and insightful business seminar on Purchasing & Materials Management. The goal of this seminar is to make executives and corporate personnel learn how to make purchasing a constant profit center!
In includes detailed explanation of the following and how it can be used to enhance business profits-
  • E-Procurement
  • Legal Aspects of Purchasing
  • Overseas Buying
  • Vendor Management
  • Negotiations in Purchasing
  • Financial Aspects of Materials Management
  • Techniques for Control of Inventory
  • Modern Storage and Warehousing Practices
  •  Logistics & Supply Chain Management Concepts

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