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    Ldss - Logistics Decisions Support Systems: Ecommerce and System Integration (Part 2 of 3) 4 May 2020

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    percy
    This document discusses e-procurement and e-commerce models. It outlines the advantages of e-procurement such as lower operating costs through reduced paperwork and sourcing time. It also improves procurement efficiency by finding new supply sources and improving communications. There are three common e-commerce models - buyer-centric, seller-centric, and system-centric. Buyer-centric solutions are administered by the buyer while seller-centric are run by sellers. System-centric involve independent portals where buyers and sellers transact. The document also notes some disadvantages of e-procurement such as security and technological concerns.

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    Ldss - Logistics Decisions Support Systems: Ecommerce and System Integration (Part 2 of 3) 4 May 2020

    Uploaded by

    percy
    37 views10 pages
    This document discusses e-procurement and e-commerce models. It outlines the advantages of e-procurement such as lower operating costs through reduced paperwork and sourcing time. It also improves procurement efficiency by finding new supply sources and improving communications. There are three common e-commerce models - buyer-centric, seller-centric, and system-centric. Buyer-centric solutions are administered by the buyer while seller-centric are run by sellers. System-centric involve independent portals where buyers and sellers transact. The document also notes some disadvantages of e-procurement such as security and technological concerns.

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    This document discusses e-procurement and e-commerce models. It outlines the advantages of e-procurement such as lower operating costs through reduced paperwork and sourcing time. It also improves procurement efficiency by finding new supply sources and improving communications. There are three common e-commerce models - buyer-centric, seller-centric, and system-centric. Buyer-centric solutions are administered by the buyer while seller-centric are run by sellers. System-centric involve independent portals where buyers and sellers transact. The document also notes some disadvantages of e-procurement such as security and technological concerns.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    37 views10 pages

    Ldss - Logistics Decisions Support Systems: Ecommerce and System Integration (Part 2 of 3) 4 May 2020

    Uploaded by

    percy
    This document discusses e-procurement and e-commerce models. It outlines the advantages of e-procurement such as lower operating costs through reduced paperwork and sourcing time. It also improves procurement efficiency by finding new supply sources and improving communications. There are three common e-commerce models - buyer-centric, seller-centric, and system-centric. Buyer-centric solutions are administered by the buyer while seller-centric are run by sellers. System-centric involve independent portals where buyers and sellers transact. The document also notes some disadvantages of e-procurement such as security and technological concerns.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    LDSS – Logistics Decisions Support Systems

    ECommerce and System Integration (Part 2 of 3)


    4 May 2020
    Advantages of E- Procurement
    Lower operating costs
    • Reduce paperwork
    • Reduce sourcing time
    • Improve control over inventory and spending

    Improve procurement efficiency


    • Find new supply sources
    • Improve communications
    • Improve personnel use
    • Lower cycle times

    Reduce procurement prices


    • Improve comparison shopping
    • Reduce overall prices paid
    Electronic Procurement

    • Common uses of E-commerce for Procurement


    • Research vendor and product information (Catalogue)
    • Electronic check of available stock
    • Price negotiation
    • Order products or services
    • Check on the status of an order
    • Issue invoice and receive payment
    • E-Procurement catalogues are of three types
    • Buyer-Centric solutions
    • Seller-Centric solutions
    • System-Centric solutions
    Types of E-commerce Models

    • Buyer-Centric Model
    • Catalogue is administered by the buyer
    • Sellers are connected once approved
    • Buyers sets guidelines and determines pre-requisites
    • Larger organisations use this to help control procurement costs and spend
    • Expensive to maintain catalogues and usually the domain of large companies
    • Buyer controls marketplace and wields more power..
    • Rapid response to user requirements
    • Initial capital outlay is required
    Types of E-commerce Models

    • Seller-Centric Model
    • Catalogue is administered by the seller / sellers
    • Buyers are connected via Internet to browse and
    purchase products / services
    • Seller assumes responsibility to maintain catalogue
    and make available to other intermediaries
    • Amazon.com / Standardbank.co.za
    • Many buyers have access at little or no expense
    • Buyer power is diluted
    • Contract prices are difficult to negotiate
    • Typical for B2C environments
    Types of E-commerce Models

    • System-Centric Model
    • Involves a independent portal site where both buyers
    and sellers meet to transact business (c-2-c model)
    • Portal is available to all buyers and sellers, and both parties may be
    charged a fee to maintain the portal
    • Many on-line auction stores such as eBay operate with this model
    • This model allows online price negotiation
    • Transaction costs may be high
    • Business rules between buyers and sellers are difficult to maintain
    Types of E-commerce Models
    E-Procurement - Disadvantages

    • Security of electronic messages


    • Risk of Credit Card numbers transmitted over the internet
    • Lack of face-to-face contact
    • Other technological concerns
    • Standard protocols
    • System reliability
    ERP – E-Business – E-Market

    • Customers expect their demands to be met faster, with greater


    accuracy and at time that suits them… E-Commerce is driven by
    customer demand.

    • Traditionally, EDI filled the function of communication between


    ERP and customers (internal and external)

    • ERP / EDI is internally focused, and only considers the one


    enterprise database as main source of information

    • E-Commerce & E-Business extends information into the external


    environment of suppliers; customers and vendors. This extension
    of ERP to the E-marketplace is called ERPII

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