The following topics will be helpful to review in preparation for the week three quiz. 1. Ways to gain maximum results in an e-procurement environment. E-procurement has had an increasingly important role in business-to-business(B2B) commerce. Web-enabled B2B e-commerce enhances inter-organizational coordination resulting in transaction cost savings and competitive sourcing opportunities for the buyer organization. E-business has radically altered the ways in which firms interact with their suppliers(Phillips 2003). Continued improvements in Internet technology connectivity provide an opportunity to make procurement for goods and services more transparent and efficient. Six forms of e-procurement applications have been noted. Knudsen cites; e-sourcing, e-tendering, e-informing, e-reverse auctions, e-MRO and web-based enterprise resource planning. E-procurement is predicated on being able to deliver a variety of benefits, which include: lower prices, lower transactional costs, better compliance and speedier processing and delivery. E-procurement is done at a much more rapid pace, but still not as fast. However, e-procurement allows for buyers of commodity products, services, and even some customized business solutions to conduct market research, solicit bids or proposals, analyze offers, place orders, submit invoices, and transmit payment for purchases electronically via numerous methods, including net marketplaces, web portals, private exchanges, vertical exchanges, and horizontal exchanges. E-procurement ranges from older electronic data interchange (EDI) batch-processed simple transactions to more recent net marketplaces involving multiple buyers and sellers exchanging transactions via the Internet, to accelerate both delivery to the buyer and payment to the seller. There are two main approaches to contracting: competitive methods, such as purchase cards, imprest funds, auctioning, net marketplaces, vertical exchanges, horizontal exchanges, web portals, sealed bidding, private exchanges, two-step sealed bidding, and competitive negotiations, and noncompetitive methods, such as purchase agreements and sole-source or single-source negotiations.
2. Phases in the contract management process
The contract management process comprises three common phases: Pre-award Phase, Award Phase, & Post-Award Phase. Also, the phases comprise six major steps for the buyer and six major activities for the seller. * Pre-award phase includes procurement planning, market research, requirements determination, the make-or-buy decision, solicitation, bid/no-bid decision making, and bid or proposal preparation. This phase is vital in creating successful business relationships. The pre-award phase has three major activities or steps for the buyer: Step 1: Procurement planning
Step 2: Solicitation planning
Step 3: Solicitation
Three major activities or steps are also involved for the seller: Step 1: Presales activity
Step 2: Bid/no-bid decision making
Step 3: Bid or proposal preparation
* Award Phase: Source Selection, Contract Administration, and Contract Closeout or Termination. * Post Award Phase: The steps in the postaward phase are the same for both buyer and seller: contract administration and contract closeout or termination.
3. Contracts vs. Projects
Contract management is principally represented by the three professional associations: National Contract Management Association (NCMA), founded in 1959, focuses on U.S. government contracting and commercial contract management both buying and selling, with about 20,000 members worldwide, the Institute for Supply Management (ISM), founded in 1915, which focuses mainly on commercial purchasing and supply chain management with about 40,000 members worldwide, and the newest, International Association of Contract and Commercial Management (IACCM). * CMs may work in such a matrix organization—supporting many projects—or they may...