eProcurment is the
value-added application of eCommerce solution to facilitate, integrate and
streamline the entire procurement process, from consumer to supplier and back
again. eProcurement initially become synonymous with the automation of order
placement transactions, often referred to as eRequisitioning or eTendering.
eRequisitioning enables users within as organization to use a simple web
browser tool to place orders with suppliers from an electronic catalogue of
pre-negotiated items. eRequisitioning applications have been used but many
companies to introduce a common, simplified system-based purchasing process to
reduce the maverick buying that is prevalent in indirect procurement spend
areas.
More recently, the scope
of eProcurement has expand to cover the full remit of processes and skills that
justify its classification as a value-now incorporates eContracting and
eIntelligence, while eRequisitioning is expanding into direct area of business
spending. Strategic sourcing is the identification of a strategic mix of
suppliers to fulfill an organization’s commodity and services demand with
eRequisitioning is expanding into the direct area of business spending.
Strategic sourcing is the
identification of a strategic mix of suppliers to fulfill an organization’s
commodity and service demand with improved cost and service. Traditionally the
benefits from strategic sourcing programmed have not been sustained because of
lack of through which the value delivered by strategic sourcing initiatives can
be locked-in by linking strategic sourcing programmed to an eProcurement
solution.
The use of a single
system-based procurement process, providing wide access to corporate contracts
developed as part of a strategic sourcing process, improves as organization’s
best contracts, and therefore maximize benefit delivery. It relationship with
suppliers, which can be used for fact-based negotiation of future contracts,
thereby providing further improved cost and services.