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    Buy Side Eproc 1

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    Dhruv Ladumor

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    Buy Side Eproc 1

    Uploaded by

    Dhruv Ladumor
    10 views17 pages

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    20200918-buy-side-eProc-1.ppt

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    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    10 views17 pages

    Buy Side Eproc 1

    Uploaded by

    Dhruv Ladumor

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 17

    One-from-Many: Buy-Side

    Marketplaces and E-Procurement


    • Buy-side e-marketplace: A corporate-
    based acquisition site that uses reverse
    auctions, negotiations, group purchasing,
    or any other e-procurement method
    One-from-Many: Buy-Side
    Marketplaces and E-Procurement
    • Procurement methods
    – Buy from manufacturers, wholesalers, or retailers
    from their catalogs, and possibly by negotiation
    – Buy from the catalog of an intermediary that
    aggregates sellers’ catalogs or buy at industrial
    malls
    – Buy from an internal buyer’s catalog in which
    company-approved vendors’ catalogs, including
    agreed upon prices, are aggregated
    One-from-Many: Buy-Side
    Marketplaces and E-Procurement
    – Conduct bidding or tendering (a reverse auction)
    in a system where suppliers compete against
    each other
    – Buy at private or public auction sites in which the
    organization participates as one of the buyers
    – Join a group-purchasing system that aggregates
    participants’ demand, creating a large volume
    – Collaborate with suppliers to share information
    about sales and inventory, so as to reduce
    inventory and stock-outs and enhance just-in-time
    delivery
    One-from-Many: Buy-Side
    Marketplaces and E-Procurement
    • Inefficiencies in traditional procurement
    management
    – Procurement management: The coordination
    of all the activities relating to purchasing
    goods and services needed to accomplish the
    mission of an organization
    – Maverick buying: Unplanned purchases of
    items needed quickly, often at non-pre-
    negotiated, higher prices
    One-from-Many: Buy-Side
    Marketplaces and E-Procurement

    • e-procurement: The electronic acquisition


    of goods and services for organizations
    Benefits of E-Procurement
    • Benefits of e-procurement
    – Increasing the productivity of purchasing
    agents
    – Lowering purchase prices through product
    standardization and consolidation of
    purchases
    – Improving information flow and management
    Benefits of E-Procurement
    – Minimizing the purchases made from noncontract
    vendors. Improving the payment process
    – Establishing efficient, collaborative supplier
    relations
    – Ensuring delivery on time, every time
    – Reducing the skill requirements and training
    needs of purchasing agents
    – Reducing the number of suppliers
    – Streamlining the purchasing process, making it
    simple and fast
    Benefits of E-Procurement
    – Reducing the administrative processing cost per
    order
    – Improved sourcing
    – Integrating the procurement process with
    budgetary control in an efficient and effective way
    – Minimizing human errors in the buying or
    shipping process
    – Monitoring and regulating buying behavior
    One-from-Many: Buy-Side
    Marketplaces and E-Procurement
    One-from-Many: Buy-Side
    Marketplaces and E-Procurement
    Implementing E-Procurement
    • Implementing e-procurement—major e-
    procurement implementation issues
    – Fitting e-procurement into the company EC
    strategy
    – Reviewing and changing the procurement
    process itself
    – Providing interfaces between
    e-procurement with integrated enterprisewide
    information systems such as ERP or supply chain
    management (SCM)
    Implementing E-Procurement
    – Coordinating the buyer’s information system with
    that of the sellers; sellers have many potential
    buyers
    – Consolidating the number of regular suppliers to
    a minimum and assuring integration with their
    information systems, and if possible with their
    business processes
    Buy-Side E-Marketplaces:
    Reverse Auctions
    • One of the major methods of e-procurement is
    through reverse auctions (tendering or bidding
    model)
    request for quote (RFQ): The “invitation” to
    participate in a tendering (bidding) system
    • The reverse auction method is the most
    common model for large MRO purchases as it
    provides considerable savings
    Reverse Auctions
    • Conducting reverse auctions
    – Thousands of companies use the reverse auction
    model
    – They may be administered from a company’s Web
    site or from an intermediary’s site
    – The bidding process may last a day or more
    – Bidders may bid only once, but bidders can
    usually view the lowest bid and rebid several
    times
    Reverse Auction:
    The Process
    Other E-Procurement
    Methods
    Other E-Procurement
    Methods

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