3.2_E-Procurement_Technology.ppt

3.2_E-Procurement_Technology.ppt - 3.2 E-Procurement...

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3.2 E-Procurement Technology HND E-Business Operations
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Learning Objectives What is procurement? Why is procurement important The evolution of procurement What is e-procurement? Procurement Vs e-procurement Demonstration of e-procurement in action The benefits of an efficient procurement process Procurement is the process of sourcing products and services from point of supply to the point of demand Procurement is the process of sourcing products and services from point of supply to the point of demand
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Why is procurement important? It received a lot of attention Open up countless opportunities Multidimensional relationships
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Procurement Evolution Strategic Sourcing PRESENT PRESENT e-Procurement FUTURE FUTURE “Partnering” PAST PAST
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Reduction in Process cost Shorter cycle times Lower personnel costs Greater accuracy Source: RB Weber (data derived from Source: RB Weber (data derived from sources including CAPS, NAPM and sources including CAPS, NAPM and Stanford University) $79 $79 $6 $6 PRESENT PRESENT FUTURE FUTURE PAST PAST $6 $6 $33 $33 $79 $79
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In order to obtain In order to obtain an equivalent an equivalent impact, a firm impact, a firm would have to... would have to... In order to obtain In order to obtain an equivalent impact, a firm would have to... Increase revenue by 50% Reduce overheads by up to 20% Significantly reduce staff numbers A 5% reduction in A 5% reduction in purchase cost can purchase cost can result in a 50% result in a 50% increase in profit increase in profit margin. margin. A 5% reduction in purchase cost can result in a 50% result in a 50% increase in profit margin. Profit Profit Other Other Costs Costs Purchases Purchases 100 100 100 100 45 50 45 47.5 5 7.5 7.5 -5% -5% Savings go direct to the bottom line
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E-Business and E-Commerce … What do they mean?
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