E- Procurement

Topics: Procurement, E-procurement, Supply chain management Pages: 4 (1151 words) Published: May 27, 2013
eProcurement related concerns
E- Procurement system is information that is technologically –based buying system, used at the end input of the supply chain management (Chang,2012).Unilever has realized the importance of being increasingly connected and be embedded with other infrastructures provided that Unilever is a company that operates globally.Unilever believes that by using the e-procurement cost savings will be achieved. For countries that operate globally e- procurement should be considered as it improves the effectiveness of operating processes and the transparency in supply chain management (chang, 2012). For the past nine months Unilever has been experiencing unnecessary costs caused by non-value adding activities such as data entry, correcting errors, fixing customer orders, which constitutes copious paperwork.Unilever has been experiencing difficulty in implementing the e-procurement system.Unilever is reluctant on implementing the system as there is for example reluctance to share data with their trading partners as there is not much buyer-supplier relationship. Adding to the difficulty of implementing the system, is the costs and development time required to set up the on line system (Chang, 2012).The main concerns that Unilever has been dealing with are discussed below.

Lack of data control and capital issues
Unilever is concerned about the inability to control the company data and Unilever has many suppliers and operates globally so there is difficulty in controlling the system (chang, 2012). Concerns stretches to security and confidentiality as sites can be hacked and loss of information can be experienced (chan, 2012). The problem of trust is huge as trust is something that is obtained over years so Unilever is reluctant to share information. The risks associated with online systems are the level of safety of email contracts, their legality, role of electronic signatures and the copyright laws to electronically copied documents are still...
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