Since the late 1990's and the Internet boom, the promise of e-procurement as a way of saving companies as much as 60% on their bottom line has been much discussed but rarely achieved. However, most companies can see results that live up to those expectations if they use specific implementation strategies
E-procurement has many benefits for companies when the systems are implemented properly. However, not all companies fully receive these benefits because they end up falling into some common pitfalls that end up making their system work less effectively than it optimally could work. Unfortunately, for most of these companies,
Electronic Procurement (also known as e-procurement) is a way of using the Internet to make it easier, faster, and less expensive for businesses to purchase the goods and services they require.
Enterprise Resource Planning (ERP) often describes a broad set of applications that assist companies in running efficiently and effectively by helping them do everything from track orders to purchase parts to provide customer service. In the late 1990's, ERP projects received a bad reputation because many of them were extremely costly were not well thought out.
During the procurement process, most people are familiar with the acronym RFP, which stands for Request for Proposal. As anyone in purchasing knows, RFPs are created by businesses and sent to vendors in order to get a full quote on a project. Generally, the RFP contains the price, as well as any other important details that the businesses might need to consider during the review process.
In many business circles, the word procurement gets tossed around a great deal. However, many people simply don't fully understand what the term means or how it can be carried out efficiently and effectively in the Internet age.
Just as businesses must purchase the goods and services they need to keep their plants running and their customers satisfied, so must governments. However, there are some key differences between the ways governments and businesses obtain these items. First, all government procurement must be done within a strict code of laws and rules.
Understanding procurement begins with an understanding of the terms associated with it. Procurement refers not just to activities done by the purchasing department. The term also includes work done in inventory, shipping, receiving, and a number of other departments, which are in charge of dealing with the goods that come into and go out of a company.