Stretegic sourcing

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PROCUREMENT is the acquisition of goods and/or services at the best possible total cost of ownership, in the right quantity and quality, at the right time, in the right place for the direct benefit or use of governments, corporations, or individuals, generally via a contract.[citation needed] Simple procurement may involve nothing more than repeat purchasing. Complex procurement could involvefinding long term partners – or even 'co-destiny' suppliers that might fundamentally commit one organization to another.
E-PROCUREMENT (Electronic Procurement) is either the business-to-business or Business-to-Consumer purchase and sale of supplies and services through the Internet as well as other information and networking systems, such as electronic data interchange (EDI) and Enterprise ResourcePlanning (ERP). An important part of many B2B sites, e-procurement is also sometimes referred to by other terms, such as supplier exchange. Typically, e-procurement Web sites allow qualified and registered users to look for buyers or sellers of goods and services. Depending on the approach, buyers or sellers may specify costs or invite bids. Transactions can be initiated and completed. Ongoingpurchases may qualify customers for volume discounts or special offers. E-procurement software may make it possible to automate some buying and selling. Companies participating expect to be able to control parts inventories more effectively, reduce purchasing agent overhead, and improve manufacturing cycles. E-procurement is expected to be integrated with the trend toward computerized supply chainmanagement.
There are six main types of e-procurement:
• Web-based ERP (Electronic Resource Planning): Creating and approving purchasing requisitions, placing purchase orders and receiving goods and services by using a software system based on Internet technology.
• e-MRO (Maintenance, Repair and Operating): The same as web-based ERP except that the goods and services ordered are non-productrelated MRO supplies.
• e-sourcing: Identifying new suppliers for a specific category of purchasing requirements using Internet technology.
• e-tendering: Sending requests for information and prices to suppliers and receiving the responses of suppliers using Internet technology.
• e-reverse auctioning: Using Internet technology to buy goods and services from a number of known or unknownsuppliers.
• e-informing: Gathering and distributing purchasing information both from and to internal and external parties using Internet technology.
e-procurement value chain consist of
1) Indent Management 2) eTendering 3) eAuctioning 4) Vendor Management 5) Catalogue Management 6) Contract Management
Indent Management: The workflow involved in preparation of tenders is handled. This module isoptional in e-Procurment value chain with individual procuring department defining their indenting process. In works procurement, administrative approval and technical sanction are obtained in electronic format. In goods procurement, indent generation activity is done online. The end result of the stage is taken as inputs for issuing the NIT.
Vocabulary for e-procurement:
• RFI: request forInformation.
• RFP: request for Proposal
• RFQ: request for Quotation
• RFx: the above three together.
• eRFx: software for managing RFx projects.
Contents
[hide]
• 1 What is needed for e-procurement
• 2 Advantages and Disadvantages
• 3 Check list to evaluate the applicability of tender/auctions
• 4 See also

[edit] What is needed for e-procurement
You will need a softwareapplication. They contain usually supplier management, complex auction system, automatic notification system etc. eBay's tools for its sellers have similar features.
[edit] Advantages and Disadvantages
Advantages include getting the right product, from the right supplier, at the right time, for the right price and the right quantity. In reality eProcurement has the advantage of taking supply chain...
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