Effective procurement is about selecting the right sources (Ward, 2016). The mos

Question

Effective procurement is about selecting the right sources (Ward, 2016). The most common measures of success are completing the project on time, on budget, and according the specifications. That cannot be achieved, however, without the effective procurement of project resources and materials. The author emphasizes strategies for choosing the right tenderers for project procurement needs.

What are the main functions of eProcurement?

How does eProcurement contribute to greater efficiency and transparency in purchasing goods and services?

What are the barriers to successful implementation of eProcurement?

What are the risks in each phase of adoption of eProcurement?

Explanation / Answer

eProcurement is nothing but it can be defined as a process of purchasing and selling of goods and services electronically. it can be business to business (B2B), business to consumer (B2C) and business to government (B2G). it does its uses internet and other information and networking system to operate its functioning.

Functions of eProcurement:- it is the electronic version of procurement. businessman uses this process for sourcing, browsing, ordering and documenting their purchase orders. eprocurement becomes more important because of its transperal function. it saves money which is associated with traditional paper based system. it improves the efficiency and transparency of purchasing process. it saves time as it stores all of its records electronically so it becomes easy to submit reusable tendors. finding old tendors are so easy in eProcurement.the main function of it is to allow employees to focus on valuable tasks.bydoing this, it eliminates the unnecessaries activities and increases the transaction speed. reduction of errors is also te main function of it.

How does eProcurement contribute to greater efficiency and transparency in purchasing goods and services?

1. it decreases request to purchase cycle time.

2. it increases the number of events per buyer.

3. it improves data visibility

4. it increases RFP process.

5. it improves oversight.

6. it implements more flexible cloud based solution .

7. it uses software to do all work.

8. it reduces requisition to order cycle.

9. it reduces requisition to order cost.

so there is the chances of greater transparency in purchasing process.

What are the barriers to successful implementation of eProcurement?

1. the cost of aquisition of eprocurement is very high.

2. internal users and vendors resist the change and create friction.

3. extensive traning is required for the use of this tool.

What are the risks in each phase of adoption of eProcurement?

1. internal business risk;- if there is the adoption of eProcurement system then there is the requirement of integration of this new system with the existing infrastructure information which is very difficult.

2. external business risk:- there is the risk of leak of information because it also requires external integration of this system such as exchange of information with suppliers as well as customers.

3. technology risk:- eProcurement requires to have clear standards just as coding, process specification that can facilitate inter organization procurement technology.

4. eProcurement process risks:- it works through internet so organization should consider the safety and security risk associated with internet connectivity. a better security system has to be installed for the better procurement.

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