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E Procurement

E-procurement involves the electronic integration and management of all procurement activities within an organization, including purchasing, ordering, delivery, and payment. It aims to reduce costs, increase transparency, and establish fair competition for suppliers. The key activities are requisition, bidding, evaluation, awarding purchase orders, delivery, quality checks, inventory management, payment, and auditing. E-procurement uses different information systems like stock control, catalogues, email/workflow, ordering websites, and ERP/accounting systems to coordinate the procurement process electronically.

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433 views

E Procurement

E-procurement involves the electronic integration and management of all procurement activities within an organization, including purchasing, ordering, delivery, and payment. It aims to reduce costs, increase transparency, and establish fair competition for suppliers. The key activities are requisition, bidding, evaluation, awarding purchase orders, delivery, quality checks, inventory management, payment, and auditing. E-procurement uses different information systems like stock control, catalogues, email/workflow, ordering websites, and ERP/accounting systems to coordinate the procurement process electronically.

Uploaded by

Osaigbovo Timothy
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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E-PROCUREMENT What is e-procurement?

The electronic integration and management of all procurement activities including purchase request, authorization, ordering, delivery and payment between a purchaser and a supplier Using internet or intranet based information systems software to coordinate the buying, shipping, inventory management, supplier selection, and approval process of vital business acquisitions within the organizations core competency. Objectives of e-Procurement To act as the catalyst for procurement reform To enhance transparency, monitoring and control in procurement process To bring in economies of scale through aggregation of demand To reduce cost of doing business for both government and suppliers To establish level playing field and fair competitive platform for the suppliers The 5 rights of E-procurement# at the right price delivered at the right time are of the right quality of the right quantity from the right source. Baily et al., 1994

Key procurement activities within an organization

Types of procurement Production-related procurement Non-production related procurement How items are bought: Systematic sourcing Spot sourcing Categorization of Procurements By Category of Goods & Services Goods Services Civil Contracts By Nature of Procurement Tenders Rate Contract & Catalogue Buying Auctions, Reverse Auctions LCB, NCB, ICB By Size / Volume of procurement High Value, low volume Low value, High Volume By Portfolio of services needed Requisition, Bid Process Evaluation, Award, PO Supply, Quality check, Inventory Management Payment, Accounting, Audit MIS, EIS Drives of e-procurement Cost reduction Enhanced budgetary control Elimination of administrative errors Increasing buyers productivity Improving information management Improving the payment process Risks and impact of e-procurement Organizational risks Need to redeploy staff Technology risks

Integration with existing financial systems Implementing e-procurement Stock control system CD/web-based catalogue E-mail/workflow system Order-entry on web site Accounting systems ERP systems

Use of different information systems for different aspects of the fulfilment cycle

eProcurement Some Examples

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