E-Procurement
[pic 1]SCHOOL OF GRADUATE STUDIESMANAGEMENT & SCIENCE UNIVERSITY SHAH ALAMDMG 5143 PROJECT PROCUREMENT MANAGEMENTIndividual Assignment 3___________________________________________________________________________MASTER IN BUSINESS ADMINISTRATIONLECTURE NAME : DR MOHD FARID SHAMSUDINNAME MATRICSYARIFF AMINI ABU BAKAR 012015030260E-PROCUREMENT[pic 2]IntroductionsAs recently as one year ago, “e” was just a letter like any other in the alphabet. Today, it seems like nearly every word has undergone a transformation and grown an “e”. With few exceptions, every major publication has articles addressing the implications that “e” bring to the relevant specialty they address. To many, especially within the investment community, placing an “e” in front of any process or function seems to be the magic prescription for untold success and rapid returns. E-commerce, e-business, e-CRM, e-trade, e-billing, and e-fulfillment are just a few examples.
Unfortunately, the reality of developing an “e-procurement” strategy is not as simple as placing an “e” in front of the historical procurement or supply management functions performed within an organization. A successful e-procurement strategy is designed to be an integrated fabric of process, technology, and resources that serves as a foundation upon which an organization can rely to enhance its ability to achieve the overall business objectives of the organization. As with any major undertaking, the success or failure of an e-procurement initiative will depend on a number of critical factors. First and foremost, its important to understand the ultimate objective of the initiative. Next, an organization must have a clearly defined strategy to reach the objective, with clear measures built into the process to measure how well each step succeeds in reaching the desired result. Finally, its imperative to select the right solution that fits within the overarching technology and business platforms of the operation.With just a point and a click, the business world has been transformed from a scene of manual and verbal transactions to that of electronic bits of data transmitted effortlessly from supply manager to supplier. While many organizations have found significant advantages to this new form of doing business, others are just now ready to stake their claim as well. How does an organization decide what e-procurement tool is best suited for its needs? Where does it start in developing an e-procurement strategy that matches the organizations industry, supply chain partners, and future goals?