Supply chain management

E-procurement=a method of engaging suppliers with electronically.

step 01= supplier mention their products in internet.

Step 02=Buyer access the website and order the item.

Step 03=e-purchase orders submitted to suppliers.

step 04=Buying organisation will issue receipts when the goods are delievered.

step 05=e-invoice from the supplier are match to the order and paid.

6 steps to implement e-procurement correctly(suitable for low-magin,high volume market)

step 01=understand your organisation

apply two components of michael porter's value chain,ie inbound logistic and procurement.

step02=understand what you are buying

step03=decide which techonology to use

ERP system (system which connect both internal and external activities of an oraganistaion)

step04=train your employees(how to use these system)

step05=train your suppliers

direct punch out ponit(direct connection to suppliers through system)

market place(intermediary work between)

step06=assess the benefits

@reduce transaction cost

b) no catalogue administration

c)getting right goods at right time

d)detailed information