...The Benefits of Electronic Reverse Auctions (e-RAs) in the Procurement Process The nature of business competition is changing drastically. One of the most profound changes currently transpiring in the world of business is the introduction of electronic commerce. The impact of electronic commerce (ecommerce, or EC) on procurement, shopping, business collaboration, and customer services as well as on delivery of various services is so dramatic that almost every organization is affected. In this paper, I will show how electronic reverse auctions (e-RAs) is very significant in the federal procurement process by saving money, time and maximizes supplier competition. Reverse auctions gained popularity with the emergence of Internet-based online auction tools. Today, reverse auctions are used by federal, state and private agencies to purchase raw materials, supplies and services. The Reverse Auction Process In the traditional auctions, also referred to as forward auctions, a seller offers a product that is demanded by several buyers who compete and bid up the price. The highest bidder wins and buys the product. In a reverse auction, it is the buyer who is in control of the process. The buyer is interested in an item offered by a number of sellers who compete and lower their price in order to get the deal. Unlike traditional auctions that occur at physical locations, reverse auctions are accessed online, through web browsers, via private software companies known as “market...
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...management over the years. This scenario is attributed to the exploitation of emerging Information & Communication technologies to realize the potential of revolutionizing, streamlining and improving supply chain operations (Patterson, Grimm & Corsi, 2003; Cagliano, Caniato & Spina, 2003). Particularly, electronic procurement or e-procurement has been established as a significant aspect of electronic business operational excellence (Barua, Konona, Whinston & Yin, 2001). Prior to commencing, one should first define the term e-procurement used in this context. According to Davila, Gupta & Palmer 2003, any ICT contrived to expedite the acquisition of goods and services over the net by either a public or private organization can be defined as e-procurement. These include software, B2B market exchanges, B2B auctions and purchasing consortia purported to atomize workflow, influence organisational spend, as well as seek out contemporary sourcing opportunities virtually (Davila et. al, 2003). E-procurement is evident as several norms. Some of the general types include, but are not limited to; - Electronic systems supporting conventional procurement such as - Web- enabled Electronic Data Exchange (EDI-IT) - EDI functions as an application that enables the transmission of messages between computer programs of 2 differing entities. The migration to open networks allows messages to be communicated in batches and eliminates for data duplication. A concern with EDI would be the higher...
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...The Benefits of Electronic Reverse Auctions (e-RAs) in the Procurement Process The nature of business competition is changing drastically. One of the most profound changes currently transpiring in the world of business is the introduction of electronic commerce. The impact of electronic commerce (ecommerce, or EC) on procurement, shopping, business collaboration, and customer services as well as on delivery of various services is so dramatic that almost every organization is affected. In this paper, I will show how electronic reverse auctions (e-RAs) is very significant in the federal procurement process by saving money, time and maximizes supplier competition. Reverse auctions gained popularity with the emergence of Internet-based online auction tools. Today, reverse auctions are used by federal, state and private agencies to purchase raw materials, supplies and services. The Reverse Auction Process In the traditional auctions, also referred to as forward auctions, a seller offers a product that is demanded by several buyers who compete and bid up the price. The highest bidder wins and buys the product. In a reverse auction, it is the buyer who is in control of the process. The buyer is interested in an item offered by a number of sellers who compete and lower their price in order to get the deal. Unlike traditional auctions that occur at physical locations, reverse auctions are accessed online, through web browsers, via private software companies known as “market makers...
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...Electronic procurement (e-procurement) is the process of electronically purchasing the goods and services needed for an organization’s operation. It entails implementing electronic means to process publish exchange and store information concerning procurement without a paper medium. Hence it consists of publishing calls for tenders on the internet, sending out documents and specifications consultation files for companies, binding tender forms, etc 38 2.4.2 Factors/ drivers for adoption e-procurement In general a number of factors might hinder or influence the adoption of e- procurement in an organization including; inadequate technological infrastructure, lack of skilled personnel, inadequate technological infrastructure of partners, lack of integration with business, implementation costs, company culture, inadequate business processes to support e-procurement, regulatory and legal controls, security, co-operation of business partners capacity, inadequate e-procurement solutions, upper management support (Chipiro, 2009). Shakir et all, (2007) identified several driver/barriers for adoption of e-procurement; Economic: Little benefit to vendors, vendors’ concerns about costs, vendors’ fear of competitive bidding because of its adverse effect on price, insufficient internal resources to support e-procurement Operational: vendors’ concerns about required changes in work processes, lack of skilled personnel, particularly when the vendor is required to populate, update,...
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...DEPARTMENT OF ENERGY FEDERAL PROCUREMENT SYSTEM BALANCED SCORECARD PERFORMANCE ASSESSMENT FY2003 2 MISSION To provide acquisition and assistance services to support accomplishment of the Department’ s programmatic goals and objectives. VISION To deliver on a timely basis the best value product or service to our customers while maintaining the public’trust and fulfilling public policy s objectives. STRATEGY To change the present system’culture, management s systems, and line processes consistent with the principles of Quality Management, in order to establish and maintain: a customer focus, a sense of urgency, continuous and breakthrough process improvement, and an emphasis on results. 3 BALANCED SCORECARD STRATEGIC PERSPECTIVES CUSTOMER What must we excel at? How do our customers see us? FINANCIAL MISSION VISION STRATEGY LEARNING AND GROWTH INTERNAL BUSINESS PROCESSES Do we get the best deal for the Government? Do we continue to improve and create value? CUSTOMER To Achieve Our Vision, How Should We Appear To Our Customers? 4 FINANCIAL To Succeed Financially, How Should We Appear To Our Stakeholders? MISSION VISION STRATEGY INTERNAL BUSINESS PROCESSES To Satisfy Our Stakeholders and Customers, What Business Processes Must We Excel At? LEARNING AND GROWTH To Achieve Our Vision, How Will We Sustain Our Ability To Change And Improve? BALANCED SCORECARD PERSPECTIVES AND OBJECTIVES CUSTOMER - Customer Satisfaction...
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...for running administration, for searching products and services for buyers, for inventory management due to increased competition among the suppliers (which increases price transparency) and reducing inventory to a bare minimum, and for transaction due to the elimination of paperwork and the partial automation of the procurement process. 2. Increased production flexibility by ensuring delivery of parts “just-in-time”. 3. Improved quality of products due to increased cooperation among buyers and sellers, reducing quality issues. 4. Decreased product cycle time due to the sharing of designs and production schedules with suppliers. 5. Increased opportunities for collaborating with suppliers and distributors. 6. Increased price transparency. The three dimensions that characterize an e-procurement market based on its business functionality are that (1) they are horizontal marketplaces (2) in which long-term contractual purchasing agreements are used (3) to buy indirect goods. Other market characteristics of e-procurement Net marketplaces are that they are independently owned, that they are many-to-many markets, and that they use fixed price catalogs. E-procurement companies serve as intermediaries connecting hundreds of online suppliers offering millions of MRO goods to business firms who pay a fee to join the market, thus it is a public marketplace. They are mediated by an independent third party that purports to represent both buyers and sellers; however, they are likely to...
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...FACTORS AFFECTING E-PROCUREMENT IN PUBLIC INSTITUTIONS IN KENYA (A CASE OF THE NATIONAL MUSEUMS OF KENYA) MICHAEL MWANGADA MGANGA L126/31112/2012 THIS RESEARCH PROJECT SUBMITTED FOR PARTIAL FULFILLMENT OF THE AWARD FOR DIPLOMA IN PURCHASING SUPPLIES OF THE UNIVERSITY OF NAIROBI SEPTEMBER 2015 DECLARATION Declaration by the Student This is my original work and has never been presented to any other institution or any other examination body Name: Michael Mwangada Mganga Signature: ________________ Date: ____________ This research project has been submitted for Examination with my approval as University supervisor. Name: M Sign: _______________________ Date: _________ DEDICATION This is dedicated to the Almighty God for his blessings for the whole duration of my study. Moreover my family members especially my parents for their moral and financial support that they have extended to me throughout my studies. You taught me the value of education and helped me believe that I can make it in life with more effort. I am heartily thankful to my supervisor, whose encouragement, guidance and support from the initial to the final level has enabled me to develop an understanding of the subject. Lastly, I offer my appreciation and blessings to all those who supported me including my fellow students through their encouragement during the completion of the project. You need to use name? ACKNOWLEDGEMENT This project is a success through the...
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...history. • Explain the procurement process, the supply chain, and collaborative commerce. • Identify the main types of B2B commerce: Net marketplaces and private industrial networks. • Explain the four types of Net marketplaces. • Identify the major trends in the development of Net marketplaces. • Identify the role of private industrial networks in transforming the supply chain. • Explain the role of private industrial networks in supporting collaborative commerce. Key Terms total inter-firm trade, p. 770 B2B commerce, p. 770 Internet-based B2B commerce (B2B e-commerce), p. 771 automated order entry systems, p. 771 seller-side solutions, p. 771 electronic data interchange (EDI), p. 772 buyer-side solutions, p. 772 hub-and-spoke system, p. 772 vertical market, p. 772 horizontal markets, p. 772 B2B electronic storefronts, p. 772 Net marketplace, p. 772 private industrial networks, p. 773 procurement process, p. 775 supply chain, p. 775 direct goods, p. 776 indirect goods, p. 776 MRO goods, p. 776 contract purchasing, p. 776 spot purchasing, p. 776 multi-tier supply chain, p. 777 legacy computer systems, p. 778 materials requirement planning (MRP) system, p. 778 enterprise resource planning (ERP) system, p. 778 supply chain management (SCM), p. 779 tight coupling, p. 779 supply chain management (SCM) systems, p. 782 collaborative commerce, p. 783 e-distributor, p. 790 e-procurement Net marketplaces, p. 791 value...
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...Quarterly 25 (2008) 155 – 180 E-government policy and practice: A theoretical and empirical exploration of public e-procurement Catherine A. Hardy ⁎, Susan P. Williams Information Policy and Practice Research Group, Discipline of Business Information Systems, Faculty of Economics and Business, The University of Sydney, Sydney, NSW 2006, Australia Available online 19 April 2007 Abstract The purpose of this paper is to theoretically and empirically explore how public e-procurement policies are translated into practice. The theoretical argument draws on actor network theory (ANT), coupled with Colebatch’s [Colebatch, H. K. (2002). Policy (2nd ed.). Maidenhead, Open University Press.] social construct of policy, to analyze the actors, actions, and circumstances through which understanding of public e-procurement comes to stabilize (or not) into a coherent policy for action. Drawing on three case studies of central government agencies in Italy, Scotland, and Western Australia, we suggest new intellectual perspectives and methodological heuristics that may assist researchers and practitioners analytical efforts in examining sociotechnical change and the implications for policy development and implementation. © 2007 Elsevier Inc. All rights reserved. Keywords: E-government; E-procurement; Actor network theory; Social construction of policy 1. Introduction Public e-procurement, as an information system (IS) enabled innovation in government, is transforming technological platforms and the...
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..._______________________________________________________________ _______________________________________________________________ Report Information from ProQuest January 09 2014 16:51 _______________________________________________________________ 09 January 2014 ProQuest Table of contents 1. How Procurement Excellence CREATES VALUE........................................................................................ 1 Bibliography...................................................................................................................................................... 11 09 January 2014 ii ProQuest Document 1 of 1 How Procurement Excellence CREATES VALUE Author: Blascovich, John D; Markham, William J Publication info: Supply Chain Management Review 9.5 (Jul/Aug 2005): 44-52. ProQuest document link Abstract: A.T. Kearney's 2004 "Assessment of Excellence in Procurement" (AEP) study reveals that senior executives expect supply management to go well beyond its traditional role. Rather than focusing on price reductions, executives are challenging the organization to capture value from the supply market. This view represents a huge advance in their understanding of procurement's potential. Nearly all leaders and most followers recognize that the key to their business strategy is value creation. Yet leading organizations use their foundation of excellence to create more value and gain competitive advantage from supply markets by focusing...
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...Supply Chain of Snapdeal Subject : Supply Chain Management Submitted By: Arushi Bhasin & Vidhi Nagar • Objective Of the assignment : To study the supply chain, flow chart, agility and case study of an e-commerce website . E-commerce website chosen: Snapdeal A brief about E-Commerce: E-commerce can be defined as the conduct of business communication and transactions over networks and through computers or as the buying and selling of goods and services, and the transfer of funds, through digital communications. It can include all inter-company and intra-company functions (such as marketing, finance, manufacturing, selling and negotiation) that enable commerce. e-commerce usescommunications such as electronic mail, EDI, file transfer, facsimile,video conferencing, workflow, or interaction with a remote computer. e-commerce has also become associated with solutions and tools such as portals, e-marketplaces, e-auctions or virtual inventory. The last few years have seen a dramatic increase in the capabilities of e-commerce as hundreds of millions of dollars were invested in building new solutions and in fighting a marketing war for apparent first mover advantages. At a simplisticlevel, supply chains are typically made up of three major flows – physical, financial and information. e-commerce has the capacity to affect all three. . Physical flows can be affected by using information to avoid physical movements and to make product information available throughvirtual ways....
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...E-TENDERING REPORT SHEFFIELD HALLAM UNIVERSITY FACULTY OF ENVIRONMENT AND DEVELOPMENT Module Leader: Module: Project Management e-Tendering Report | An appraisal of e-tendering for Local Authority | Date: 25.02.08Author: Rev: A/001 | Contents 1. General 3 1.1. Introduction 3 1.2. Assumptions 3 2. Executive Summary 4 3. Normative Definition 5 4. Local Authority Benefits 6 4.1. Tangible Benefits 6 Time Reduction 6 Cost Reduction 6 4.2. Intangible Benefits 7 4.2.1. Management of the Tendering Process 7 Standardisation 8 Transparency 8 Dispute Occurrence 8 Security 8 5. Local Authority/Supplier Disadvantages 9 5.1. Procedural Change 9 5.2. Staffing Resources 9 5.3. Staff Training 9 5.4. Material Resources 9 6. Supplier Benefits 10 6.1. Improved Communication 10 6.2. Global Inclusion 10 7. Types of E-Tendering Solutions 11 7.1. Hosted Package 11 7.2. Recommendation 11 8. Method of Implementation 12 9. Appendix 13 9.1. Appendix A- Average Quantity of Tenders 13 9.2. Appendix B- Glossary 13 9.3. Appendix C- In-House Developed Package 14 9.4. Appendix D: Key Performance Indicator Example 14 9.5. Appendix E- Programme of Implementation 0 10. References 16 11. Bibliography 17 General Introduction Jeffreys & Associates have been commissioned by Sheffield Local Authority to address e-tendering as a possible solution to replace the existing traditional...
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...INFORMATION COMMUNICATIONS TECHNOLOGY (ICT) PROCUREMENT MANUAL TABLE OF CONTENTS SECTION 1 INTRODUCTION ABBREVIATIONS AND ACRONYMS SECTION 2 PREPARING FOR ICT PROCUREMENT PLANNING How do we prepare for ICT Procurement? Looking at Total Cost Ownership What is the value of Hiring ICT Procurement Consultant? What are the classifications of ICT Procurement? Drafting the Technical Specifications, Scope of Work and Terms of Reference Drafting Service Level Requirements Reference to Benchmarks Use of Brand Names in ICT Procurement “Green” Considerations in Making Technical Specifications PREPARING THE BIDDING DOCUMENTS What are Bidding Documents? Who shall participate in the preparation of the Bidding Documents? BAC for ICT Projects What various types and sizes of contracts may be provided in the Bidding Documents How should Pre-Procurement Conference be conducted? Conducting Proof-of-Concept SECTION 3 INSTRUCTIONS ON THE PROCEDURAL STEPS FOR ICT PROCUREMENT Competitive Bidding ICTO-DOST Standards Development SECTION 4 GUIDELINES ON CONTRACT IMPLEMENTATION FOR ICT PROCUREMENT OF GOODS Dispute Resolution ANNEX A: Definition of Terms ANNEX B: Process Flow for Goods and Infrastructure ANNEX C1: Process Flow Quality Based Evaluation ANNEX C2: Process Flow Quality Cost Based Evaluation ANNEX D: Sample Technical Specification Checklist ANNEX E: Sample Bid Evaluation Template 1 2 3 3 4 4 5 7 10 11 11 11 13 13 14 14 14 17 17 18 18 18 19 SECTION 1 INTRODUCTION This Manual seeks to...
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...Regulations (FAR) Part 13 for purchasing goods and services under a certain dollar threshold. In October 1994, the FAR established the Federal Acquisition Streamline Act (FASA) as a simplified means for the government to acquire goods and services. Simplified acquisition was created into the government procurement process to streamline the contracting process through the elimination of certain rules and actions, and allowing a relatively low administrative cost associated with procurement and provides the easiest form of federal contracts to small business and disadvantage businesses. Agencies are instructed to use simplified acquisition procedures for all purchases of supplies or services below the threshold of $5 million. Whenever the government seeks to obtain goods or services between the amount of $2,500 and $100,000 the agency can usually set aside these acquisitions for small businesses if there are at least three competitive offers. Simplified acquisition between $2,500 and $25,000 can obtain either an oral or written quotations from businesses in an effort to promote competition. For contracts over $25,000, an oral quotation may not be realistic; therefore the use of electronic commerce would be used. Purchases under $2,500 are considered “micro-purchases” and do not need to go through a formal solicitation process. As long as the contracting official thinks the price is fair a government commercial purchase card (GPC) can be used. Purchase Orders, Blanket Purchase...
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...identification system. 6.Responsible for the enforcement of QC. 7.1994. 8.None of the above . 9.Import and export of goods. 10.All of the above. PART TWO : 1. EDI procedure: : Electronic data interchange (EDI) is an electronic communication method that provides standards for exchanging data via any electronic means. By adhering to the same standard, two different companies or organizations, even in two different countries, can electronically exchange documents (such as purchase orders, invoices, shipping notices, and many others). EDI has existed for more than 30 years, and there are many EDI standards (including X12, EDIFACT, ODETTE, etc.), some of which address the needs of specific industries or regions. It also refers specifically to a family of standards. In 1996, the National Institute of Standards and Technology defined electronic data interchange as "the computer-to-computer interchange of strictly formatted messages that represent documents other than monetary instruments. EDI implies a sequence of messages between two parties, either of whom may serve as originator or recipient. The formatted data representing the documents may be transmitted from originator to recipient via telecommunications or physically transported on electronic storage media." It distinguishes mere electronic communication or data exchange, specifying that "in EDI, the usual processing of received messages is by computer only. Human intervention in the processing of a received message is typically...
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