By Dale Neef
E-Procurement is sizzling. And no ask yourself: businesses are reporting that e-Procurement structures are saving them hundreds of thousands of greenbacks every year -- sometimes, billions. GE's Jack Welch claims that GE will retailer $10 billion money from e-procurement. Cisco Systems's John Chambers says it's Cisco's number one precedence. Now, there is a start-to-finish consultant to imposing e-Procurement in any firm. Dale Neef covers all of it -- from making the enterprise case to architecting the answer, coping with the dangers to reaping the advantages. Neef starts off with an up to the moment evaluate of the promise of B2B e-procurement in helping globalized, prolonged companies. He stories the choices for deploying e-Procurement, together with inner ideas and e-Hubs; then identifies key concerns linked to e-procurement within the firm. easy methods to make the enterprise case for (or opposed to) e-Procurement, and the way to architect the optimum resolution. you will discover unique insurance of modern top e-procurement applied sciences, together with XML; and state-of-the-art prime ways, from ERP-based suggestions to company software integration. Neef covers the full lifecycle of the e-Procurement initiative, picking out key pitfalls and components of possibility -- and confirmed recommendations.
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Additional resources for e-Procurement: From Strategy to Implementation
Sample text
Usually central purchasing) and often require multiple calls and semi-confused conversations between users and the purchasing specialist, and then many other calls to the several suppliers in order to resolve issues on price, availability, and delivery times. E-PROCUREMENT The Fundamentals of Procurement 29 The Requisition Process Except for those companies whose central purchasing department has direct links to a supplier through EDI, the requisition process is still paper-based, usually with multiple copies of requisition forms sent through internal mail to various managers within the approval chain.
The bank spends an average £330 million each year in purchasing ORM materials, and found that it had some 37 different standalone purchasing systems and procurement processes. Its supplier list had not been rationalized in years. Following implementation of a full e-procurement initiative— which included programs for vendor rationalization, process improvement, and systems implementation—it reported saving 30%—nearly £Ir1 million in one year. Source: Billinge, Colin, “Everyone Needs a Leader,” The Financial Times “Understanding E-Procurement” Survey, Winter 2000, p.
Unfortunately, in their initial APS (Advanced Planning and phase, ERP systems did not necesScheduling): advanced sarily produce the return on software platforms that provide demand forecasting investment (ROI) or process and planning, resource improvement results that might scheduling, and production have been hoped for. Because they plans. were fundamentally designed to collect, organize, and report on financial and manufacturing performance information, they could not help organizations with the next key step—using what they learned from that information to improve their company’s performance.