E-Procurement + E-Sourcing

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Definition of E-Procurement
E-Procurement is the term used to describe electronic methods of conducting business transactions. The 'e' in e--procurement stands for electronic. E-procurement can be used in every stage of the process. It can begin with the actual sale coming through to the purchaser and end with the customer's invoice and payment. E-Procurement is more than just a system for making purchases online. A properly implemented system can connect companies and their business processes directly with suppliers while managing all interactions between them. 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-product related 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 unknown suppliers. * E-informing: Gathering and distributing purchasing information both from and to internal and external parties using Internet technology. Benefits of Adopting an E-Procurement System

* E-Procurement helps with the decision-making process by keeping relevant information neatly organized and time-stamped. Most are template-driven which makes all transactions standardized and track able. Keeping track of all bids means leveraging your knowledge to obtain better pricing. Companies can focus on their most lucrative trading partners and contracts.

* Well-managed e-procurement helps reduce inventory levels. Knowing product...
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