E-procurement
Electronic procurement ( e-procurement also called ) is the procurement of goods and services using the Internet and other information and communication systems (such as EDI and / or ERP systems ). It is generally used in the area of corporate purchasing larger companies and organizations.
This term is usually only operates when secure access extranets or intranets done in. Here are often used VPNs ( virtual private network) that are particularly protected and not accessible to third parties.
Closed system
In a closed system, the two corporate networks of suppliers and the purchasing company (customer) are interconnected. This usually means a significant effort to adjust the interfaces to each other. Use both companies or organizations similar software systems, the composite simpler. Nowadays, the data transmission is often via the platform-neutral description language XML. Nevertheless, there still remains a considerable effort to set up. For this reason, such systems only pay off if a significant procurement circumference between the supplier and the customer takes place. This is the case with suppliers to the automotive industry.
The graph shows the basic arrangement. On the left we have the power of suppliers, the right of the customer. The data is exchanged between the two networks over the Internet. The usual VPN is located.
Semi-open systems
By a distributor with many customers ( retailers ) half-open systems are provided. Such systems are integrated on the supplier side to the internal network, while typically takes two forms, on the customer side. A standard interface that runs in a browser, customers can directly intervene in the processes of suppliers, place orders, track the status of the delivery, view inventory, etc. Most often in parallel interface available ( like Java applications) through which the customer can make the connection to his own system itself or can be done this by a software house.
Open systems
In particular, for indirect goods ( MRO Maintenance, Repair and Operations ) often look for open systems applications, which are mostly asynchronous and interconnected via the Internet. The data exchange takes place on the basis of product catalogs that are provided mostly at longer intervals (weeks to months) by the supplier by file and checked by the buyer. The necessary processes defined catalog management.
The benefits
Due to the direct connection of two internal networks arise for both sides mostly significant process cost savings. The in-house operations ( = processes) take place without a so-called media break. Without e-procurement orders are normally printed in the customer system on paper, in any way (fax, mail ) sent to the supplier and there entered again into the supplier's system. The savings this detour via paper relates both cost and time in particular.
In addition, transmission errors are avoided, which otherwise may occur when re-reading the paper - also automatic scanners not completely error free. The availability of the goods can be checked immediately and so immediately the decision be taken to select a replacement product to postpone the project or to appoint another supplier.
Another benefit has on the order page, if within this system, the order process is automated. Thus the possibility exists to make every employee to make a web-based interface his order itself. From the purchasing department a web guide is determined by means of which the employee fills a shopping cart. The order will either, if approved, for approval, or sent directly to the supplier. In this way, the internal processing time is thus reduced because the operating expenses is laid on the need for carrier itself.
Typically in such systems not only the procurement operations are carried out electronically as such. In particular, the invoice will usually also about the system. Here, the relevant regulations of the tax authorities for the tax recognition of electronic invoices must be considered.
Also automated are usually the discount schemes and various statistical analyzes and documentation.
Public procurements
A special importance is the e-procurement in public procurement. By law changes electronic tendering have become possible and is currently in the test phase recently. The liability of the tenders will be about by electronic signature.
In the international Pan - European Public Procurement OnLine ( PEPPOL ) EU - project standards and IT components for cross-border e-procurement will be developed straight.
Safety aspects
An important aspect of e-procurement is the security of data.
Technical Realization
The technical implementation is very diverse. The data transfer with XML is recent. For existing systems specifically developed data formats are mostly used yet. As programming on Java was often taken. However, this requires a clear definition of the technical requirements to the computer the other side and is therefore used in practice only closed systems. In semi- open systems, an application can be made if one side has the market power to require the contractor to use certain hardware and software. Through the use of XML one has become more flexible with respect to the programming languages. In some cases where take place the orders via a web-based system, both the ERP system of the customer and the supplier's be attached to the shop system. Here the data exchange format IDOC plays at companies that use the ERP system R / 3 SAP AG, a significant role.
Commercial realization
Rarely, both sides will have the same market power. Therefore, one can speak of systems and suppliers of buyer systems.
Supplier systems ( sell-side )
In systems supplier, the supplier specifies the system and identifies the requirements to be met by the customer to use the system. Since the supplier is interested in the business, he often also offers a simplified system in which on the client side is just a PC with a suitable interface. In particularly simple cases suffice standard PCs with standard browsers. The software routines required to be partly free, partly made available for a fee. Any required hardware is defined so that the customer can obtain them. Occasionally, special hardware (often for security reasons) offered for sale or rent.
Acquirer Systems ( buy-side )
When the buyer systems the customer ( buyer ) defined the technical requirements for the ordering system. As a long time suppliers therefore only companies came into question that could meet these conditions and bear the often considerable investment costs. In particular, the development of the automotive industry recommendation for a standardized data exchange format, VDA, and its explicit use made smaller suppliers insurmountable difficulties until in recent years by the so-called Web EDI a browser- based alternative was created.
Marketplace systems
Add Marketplace systems operators offer both the supply side and the demand side often standardized interfaces for electronic data exchange. This benefit preclude fees such as charges, fees for updating the electronic catalogs, often including transaction costs per business document and additional costs for additional services, such for signing bills that must be paid by both trading partners to the marketplace operator.
The term e -procurement through the ages
Electronic procurement began with software that supported the operational procurement ( such as electronic catalogs). Therefore, initially, the same term was for " e-procurement " and "operational electronic procurement " is used: e-procurement. Later came software solutions to maturity, known as the E-Sourcing " strategic electronic procurement " served. How can it be explained that in some literature sources E-Sourcing is referred to as part of e -procurement and not in others.