This is an era of internet ownership, in which all enterprises face the powerful impact of the internet wave, and where e-commerce is becoming increasingly mature, both from a technological perspective and in the broader context of society. How can enterprise-to-business informatization be addressed? How can business e-commerce be achieved? These are real problems for business managers and heads of information departments. Using e-commerce to re-integrate resources and regulate business processes is a good opportunity for enterprise informatization, thanks to innovations in information technology tools, to achieve online bidding, online bidding and matchmaking。
The apple is ripe
The three elements of business profitability are summed up in this image, “to buy cheaply and not waste the middle”. A reduction in procurement costs is one of the most effective links in the supply and distribution chain of the enterprise. This has been done, with the result that each dollar reduction in the cost of procurement would yield benefits equivalent to an additional $5-15 product. The implementation of the e-procurement system has the advantage of having a short project implementation cycle with clear results. There are additional requirements for e-procurement within the enterprise。
Reduce procurement costs
As competition among firms has intensified, corporate leaders have increasingly called for material management to reduce procurement costs. Thus, the performance of the procurement staff is measured in at least two ways: first, to buy back what the enterprise needs to ensure that the enterprise produces and operates continuously; second, there is a certain reduction in procurement costs compared to the previous year or quarter. However, there was some contradiction between the two, which required procurement staff to devote a significant part of their time and effort to planning and coordinating to achieve the desired purpose。
Procurement knowledge system update
With china's accession to wto, the chinese government has further reduced tariffs and domestic firms will compete under the same conditions as foreign firms. Increased competition necessitates that enterprises have better-quality talent of all kinds, and that, in the case of procurement staff, the former single “purchase” role is no longer repeated, and that firms even require procurement staff to be specialists in foreign languages, engineering techniques, management knowledge, goods knowledge, market conditions, overall planning and coordination, logistics knowledge, and e-procurement knowledge。
Respond to the trend of computerization in the internet age
In the light of global procurement trends, e-procurement will become increasingly accepted by business managers. In fact, many tncs have acquired some of the items they want to purchase by means of e-procurement, some of which amount to tens of billions of dollars a year. Enterprises that have introduced e-procurement consider that e-procurement has more advantages than traditional methods of procurement, and on the one hand, the internet provides a wider choice for both suppliers. In addition, expenditure on unit purchase prices and procurement management costs could be significantly reduced。
Electronic procurement ters. 721
With regard to electronic procurement, many felt very abstract. In fact, e-procurement is a technological innovation in the enterprise's traditional goods procurement business and, like telephones, fax machines, provides business procurement staff with a tool to complete the pricing process. The presentation below gives us a preliminary idea of e-procurement。
E-procurement business analysis
We can define e-procurement through the internet, identifying, managing qualified suppliers and goods, keeping abreast of market conditions and inventories, preparing procurement plans, procuring the required items online, managing purchase orders and items purchased on-site, desk account management and inventory management, achieving automatic statistical analysis of procurement and solar procurement。
Electronic procurement methods include, inter alia, open tendering, invitations to bid, competitive negotiations, request for quotations and single-source procurement by agreement. E-procurement is both an important form of electronic commerce and a necessary development of procurement. It is not only a formal and technical change, but, more importantly, a change in the way traditional procurement operations are handled, the procurement process is optimized, procurement efficiency is improved and procurement costs are reduced. Through electronic catalogues, buyers can quickly find more suppliers; optimal sources of goods can be selected on the basis of historical vendor procurement electronic data; more effective competition can be achieved through e-tendering, e-tendering, etc., to reduce procurement costs; and e-procurement processes can lead to shorter procurement cycles, more efficient procurement and fewer manual errors in procurement; through vendor and supply chain management, the chain of procurement can be reduced, end-to-end procurement achieved and procurement costs reduced; electronic information data provide access to market conditions and inventories, scientific planning and procurement decisions。
Facilitation of electronic procurement
E-procurement provides a bridge for information exchange between the material sector and suppliers and will provide business facilities for both buyers and sellers. E-procurement has the following advantages for the procurement, management and implementation sectors:
The procurement implementation process can be fully electronic via the internet;
Support dynamic electronic management of e-procurement catalogues;
Support for e-management and relationship maintenance of suppliers;
A process customization and modification function with parameterized features;
E-tendering procurement supports online tendering, solicitation of tenders, sale of tenders, tendering, opening of tenders, evaluation of tenders, award of tenders, management of bid evaluation experts, management of bid solicitation costs, support for various methods of award, such as unit price, total price, expert evaluation, etc;
Competition procurement supports open/invited bids and multiple methods of award, such as price determination and expert evaluation;
A strong statistical analysis function to support procurement decision-making analysis and evaluation of procurement performance;
(a) close links with existing enterprise applications to achieve seamless integration of business information, such as vendor data, procurement material data and procurement results data;
For suppliers participating in e-procurement platforms, their convenience is also evident:
A 24-hour online offer platform was added;
Self-service product catalogue services to enable suppliers to exchange timely product information, including prices, with buyers;
Systematically regulated procurement processes serve to regulate the conduct of vendor transactions;
Timely, effective and affordable communication of information is an important value of the internet information application system, with multiple e-mail-based modes of communication, timely access to information on the buyer and effective communication。
Procurement by electronic tendering
In more complex cases of procurement of critical items and evaluation of the subject matter of the procurement, tender procurement is generally used. Tender procurement based on the principle of “open, fair and impartial” allows for the evaluation of other commercial and technical elements of suppliers to be fully considered in a competitive context, thus ensuring the effectiveness of the procurement。
The traditional way in which solicitation procurement is handled has made it necessary for the relevant procurement practitioners to have a good understanding of the solicitation business because of the complexity of their business processes, thus increasing the burden on the personnel involved; moreover, traditional bidding has a longer and less efficient cycle。
The e-tendering procurement method was designed and developed on the basis of the law of the people's republic of china on tendering, in the light of the experience of industry experts, and its business processes cover all processes of traditional tendering, the electronic management and operation of the bidding process and the perfect integration of the concept of tender and information technology, thus enabling general practitioners to operate tender projects easily. The data and documentation relating to each solicitation operation can be kept in an orderly manner and effectively feed knowledge for future business needs of the enterprise. The use of electronic tendering for procurement can also significantly shorten the procurement business cycle。
Competitive methods of procurement
Competing procurement is an integral combination of tendering and auctioning techniques and modern internet information technology and is a reverse act similar to auctioning. That is, the process of winning the target through a gradual reduction in sales prices, also known as auctions. At the time of the bid, the buyer issues a bid, agrees in advance on the terms of the auction and presides over the bidding process. All suppliers that have been pre-qualified by the purchaser are competing with their counterparts under conditions of anonymity, and may fully offer competitive offers during the required competitive bidding process in order to obtain a favourable ranking for themselves, with the final successful bid of the supplier that meets the pre-set requirements for the award。
Compared with traditional bidding methods, competitive procurements convert static bids from bids into dynamic offers, allowing suppliers to offer multiple bids in a level playing field, thus enabling them to quickly reach the average market cost line for the products procured。
Compared to the traditional competitive offer, online competitive procurement ensures real-time competition while ensuring participation in back-to-backs between suppliers, thus allowing for a fully competitive environment in which the interests of the purchasing enterprise can be assured。
Online competitive purchases structured in the context of advanced internet-based information technologies have become more and more acceptable to enterprises because of their competitive atmosphere, evident price reductions, ease of operation of business processes and short business cycles. The introduction of competitive procurement systems by enterprises has proven to reduce procurement costs by 10 per cent ~ 35 per cent; while reducing procurement costs, the introduction of competitive procurement can also effectively reduce the procurement cycle。
Method of procurement
For competitive procurement, by definition, there are three suppliers, which determine the final supplier by comparing the price. This applies to cases where the procurement is low and can be completed through simple negotiations. Internet-based value-for-money procurement includes the following functions:
Public request for quotations: request for quotations is published publicly to all suppliers。
Invitation to request for quotations: direct request for quotations to qualified prequalified suppliers
• negotiation of quotations: procurement officers conduct multiple rounds of negotiations with vendors to determine the final offer
Online price: procurement officers conduct online comparisons of offers from various vendors, select the best-value suppliers and form draft supply and demand orders。
Follow-up of the request for quotation process: procurement staff and approving officers have access to the entire request for quotation process and to the minutes of each negotiation and the list of quotations。
Log queries: the system provides query log queries。
Order approval: a negotiated order is submitted for approval。
As a technological innovation in the management of traditional goods, the implementation of e-procurement systems by enterprises will inevitably encounter management and operational difficulties, and if we are fully prepared and work, we will find solutions。
