Current Purchasing and Supply Chain Practices in E-procurement Essay

Current Purchasing and Supply Chain Practices in E-procurement - Essay ExampleIndeed as e-commerce continues to gain root courtesy of the developments realized in Information and Communication Technology (ICT) it seems every atomic number 53 sector is being transformed. E-procurement therefore involves the economic consumption of Electronic Data Interchange and Enterprise Resource Planning. It is basic all toldy facilitated through the use of various software applications which enhance the process of provider management and complex auctions. The abide by compass process of e-procurement consists of e-tendering, indent management, e-auctioning, catalogue management, set up notice, e-invoicing, e-payment and contract management. It basically involves the conventional ply chain processes which are enhanced through the use of information systems. In public sector organizations, e-procurement is becoming a common affair given its increased benefits. Some of the benefits realized t hrough e-procurement include increased force and cost savings. Indeed, these have always been study concern in government contracting. Similarly, e-procurement improves the transparency of the procurement process. ceremonious procurement is normally characterized by rampant corruption especially in the public sector. A impart chain network enables the distribution options for the procurement of both raw material and finished products. In this regard, the study aim of a supply chain network is to satisfy the needs of the consumer as soon as they appear. This is certainly an important component of e-procurement (Ageshin, 2001). It should be realized that e-procurement is not simply a process of do online purchases. It must provide an open and effective communication line with all the potential suppliers throughout the origin process (Waters, 2007). Research and New trends Businesses are today compelled to adapt and reconfigure their IT systems, assets and chore operations in o rder to meet the increasingly changing demands of the customers. There is a growing need to compress the long business cycles and to differentiate from the increased competition (2007). In this respect, refreshing trends in e-procurement are constantly adopted with the major aim of enhancing operations through efficiency, costs reduction and output maximization. The systems are facilitated through the adoption of new architectural styles. The e-procurement and purchasing process involves the following steps (Dolgui, Soa, & Zaikin, 2005). Purchase approval and supplier evaluation The e-procurement supply chain process normally begins by the demand or need of the material by a user. In this respect, a number of electronic documents are normally used. They include forecasts and customer orders, purchase requisitions, occupation checks and material requirements. The process of purchase approval involves a number of steps and will normally opine on the size of the purchase and whether the client is making first time purchases. Depending on the size of the purchase, there can be a need for supplier evaluation which begins with from the determination of the purchase need (Forrest, 2006). bid and supplier selection The selection of suppliers is actually one of the most important activities in this respect. In any case, any mistakes or errors at this time can be very damaging and long-lasting. at a time all the bids are received and the negotiation process has occurred, the sourcing team will then select an appropriate supplier and the approval is then authorized through the purchase approval step (Foust, 2013). Purchase approval Once the supplier has been selected, purchasing grants an authority or approval to purchase the product or service. This is facilitated through the use of an electronic drafting of a purchase order (PO). This is also