E-procurement and e-logistics

Implementations
• Time Before e-procurement and logistics
• Delayed delivery
• Distorted information
• Poor records keeping/filing
• Long processing of tender
• Human interface at every stage
• Lack of transparency
 E-procurement and e-logistics
Implementations
• A NEW approach
• No human interface
• Enhance transparency
• Shorten the tender cycle time
• Improving records authenticity
 E-procurement and e-logistics
Implementations
• Implementation Challenges
• Change management
• Resolving data security issues
• To establish a sustainable business model with
proper implementation strategy
• To ensure interdepartmental coordination
 E-procurement and e-logistics
Implementations
• E-procurement and e-logistics Implementation
process
• Train staff:- telling them about the need for
change, best market practices and challenges
• Piloting/partial implementation
• Commercialization/full implementation
• Monitoring/controlling
• Evaluation
 E-procurement and e-logistics
Implementations
• Tools for e-procurement & e-logistics
• EDI
• ERP systems
• Internet
• E-hubs
• E-exchanges
• E-marketplace
• E-catalogues
• E-auctions
 E-procurement and e-logistics
Implementations
• EDI (Electronic Data Interchange)
• EDI is an application whereby electronic
messages can be exchanged between computer
programs of two separate organizations. Some
features of EDI include:
• Messages are exchanged in groups, known as
batches
• Messages can automatically be sent, transmitted
and stored between computers without retyping
or keying data
 E-procurement and e-logistics
Implementations
• EDI cont…
• EDI has to be implemented by each pair of
organizations (sender and receiver) who wish to use it.
This means that the implementation costs of EDI are
relatively high.
• EDI is mostly used where the messages exchanged
concern such matters as orders, confirmations,
transport information and invoicing.
• EDI traditionally runs on so-called, “Value Added
Networks”, which are closed networks (unlike open
networks like the Internet).
 E-procurement and e-logistics
Implementations
• ERP systems
• ERP systems are management information
systems that integrate and automate many of
the business practices associated with the
operations of a company or organization. ERP
systems typically handle the manufacturing,
logistics, distribution, inventory, shipping,
invoicing, and accounting for a company or
organization.
 E-procurement and e-logistics
Implementations
• ERP systems cont…
• ERPs aid in the control of many business
activities, like sales, delivery, billing,
production, procurement, inventory
management, and human resources
management.
 E-procurement and e-logistics
Implementations
• Internet
• There are various types of internet based
applications that serve different purposes.
Some well-known applications that use the
internet are described below:
• Electronic mail (e-mail)
• Email is an Internet based application through
which electronic messages are exchanged
between people.
 E-procurement and e-logistics
Implementations
• Internet cont…
• Web enabled EDI
• web enabled EDI is like traditional EDI but run
on the Internet; also known as EDI-INT.
• Extensible Markup Language (XML)
• XML is used to allow for the easy interchange
of documents on the World Wide Web.
 E-procurement and e-logistics
Implementations
• Internet cont…
• World Wide Web (WWW)
• The WWW is a major service on the Internet.
The World Wide Web is made up of "Web
servers" that store and disseminate "Web
pages," which are "rich" documents that
contain text, graphics, animations and videos
to anyone with an Internet connection.
 E-procurement and e-logistics
Implementations
• Internet tools
• Some internet tools and platforms that
replace traditional procurement include:
• E-sourcing
• E-tendering
• E- auctioning
• E-ordering and web-based ERP
• E-information
 E-procurement and e-logistics
Implementations
• Internet tools cont…
• E-sourcing
• E-sourcing supports the specification phase; it
can be used to pre-qualify suppliers and also
identifies suppliers that can be used in the
selection phase. For suppliers the benefit is:
“marketing” and for the buying organizations the
benefit is facilitating the sourcing of suppliers.
The UN Global Market Place
(UNGM www.ungm.org) is an example of an E-
sourcing tool.
 E-procurement and e-logistics
Implementations
• Internet tools cont…
• E-tendering
• E-tendering supports the selection stage and acts
as a communication platform between the
procuring organization and suppliers. It covers
the complete tendering process from REOI via
ITB/RFP to contracting, usually including support
for the analysis and assessment activities; it does
not include closing the deal with a supplier but
facilitates a large part of the tactical procurement
process.
 E-procurement and e-logistics
Implementations
• Internet tools cont…
• E-tendering
• It results in equal treatment of suppliers; transparent
selection process; reduction in (legal) errors; clear
audit trial; more efficiency in the tactical procurement
process and improved time management of tendering
procedures. Some UN organizations such as UNDP and
UNHCR have used E-tendering in the formulation of
long-term agreements for vehicles, tents, motorcycles
and pharmaceuticals through an in-house developed
tendering portal.
 E-procurement and e-logistics
Implementations
• Internet tools cont…
• E-auctioning
• E-auctioning supports the contract stage. It enables the
closing of a deal with a supplier if parties agree on
price. They operate with an upward or downward price
mechanism e.g. e-auctioning with upward price
mechanism for the selling organization and e-reverse
auctioning with a downward price mechanism for the
buying organization. They can be made in accordance
with traditional ITB/RFP. They are internet based using
open or closed systems.
 E-procurement and e-logistics
Implementations
• Internet tools cont…
• E-ordering and web-based ERP
• E-ordering and web-based ERP is the process
of creating and approving procurement
requisitions, placing purchase orders, as well
as receiving goods and services ordered, by
using software systems based on the Internet.
 E-procurement and e-logistics
Implementations
• E-hubs
• E-hubs is a business-to-
business website for a particular industry. It pr
ovides a meeting ground for buyers and sellers
in a specific field, and rather than being advert
ising
based, may charge a transaction fee for each p
urchase. It is also known as a vertical portal.
 E-procurement and e-logistics
Implementations
• E-exchanges
• Electronic exchange is an online remittance for
goods traded in an online market place. In this
system a buyer is billed through electronic
invoice and pay through credit card or pay pal.
Most banks connect to international
electronic exchange systems to facilitate cash
transfer on payment basis.
 E-procurement and e-logistics
Implementations
• E-marketplace
• Is a virtual, online environment such as a
website that allow individual or firms to
conduct business electronically.
• It most cases e-marketplace is a service
provided by multiple third parties who
facilitate transaction processing
 E-procurement and e-logistics
Implementations
• E-catalogues
• Electronic catalogue is a web resource that
provides information about products and
services offered and sold by a vendor, and
supports on-line ordering and payment
capabilities
• What are the advantages of e-catalogue over
printed one
 E-procurement and e-logistics
Implementations
• E-auctions
• An e-Auction, also known as a
'reverse auction' is an electronic
auction where buyers bid to buy a published
items and supplier select the best offer and
engage in an online contract to deliver. The
bidding is transparent
 E-procurement and e-logistics
Implementations
Assignment; review various tools for e-pro & logs