Why You Cannot Neglect Electronic Procurement
The integration of information technology in supply management processes is not an option any more, but it has become essential for supply management professionals to position themselves at the forefront of the discipline. This chapter highlights the wealth of opportunities associated with electronic procurement, coupled with some compelling statistics and illustrations of its impact. Numerous benefits of electronic procurement will be highlighted, enhancing visibility, communication, efficiency, automation, standardization, and process structures. Common challenges, to which however remedies are suggested, will also be discussed. These include system capabilities, implementation costs, reduced human interaction, internal resistance, supplier limitations, and security. Lastly, the software development life cycle will be reviewed in order to help decision makers with the implementation of electronic procurement.
KeywordsBenefits and drawbacks of electronic procurement Visibility Communication Implementation Resistance User adoption Software development life cycle
- Arnseth, L. (2017, January). The Evolution of Supply Management. Inside Supply Management®, 28(1), 22.Google Scholar
- Ball, B. (2016, November). Supply Chain Visibility: Know Sooner, Act Now. Aberdeen Group.Google Scholar
- Cavinato, J. L., Dennis, M., Lallatin, C. S., Pohlig, H. M., Sturzl, S. R., Tracey, T., et al. (Eds.). (2015). ISM Glossary of Key Supply Management Terms (6th ed.). Tempe, AZ: Institute for Supply Management®.Google Scholar
- Doerfler, S. (2016, November). Now Trending: Six Megatrends are Reshaping the Supply Chain of Today and Tomorrow. Inside Supply Management®, 27(9), 16.Google Scholar
- Dwyer, C. J., & Limberakis, C. G. (2011). The State of Strategic Sourcing. Aberdeen Group Research Report.Google Scholar
- European Commission. (2018). E-Procurement. Retrieved March 12, 2018, from http://ec.europa.eu/growth/single-market/public-procurement/e-procurement_en.
- Gil, G., & Lutha, S. (2016, November). 30 Years of Serving Supply Management. Inside Supply Management®, 27(9), 30.Google Scholar
- Hirschman, B. (2017, August 23). Convincing the Boss to Invest in E-procurement. Grainger Knowledge Center. Retrieved April 3, 2018, from https://www.grainger.com/content/kc-epro-article-convincing-the-boss-to-invest-in-eprocurement.
- Innovative Architects. (2018). The Seven Phases of the System-Development Life Cycle. Retrieved March 12, 2018, from https://www.innovativearchitects.com/KnowledgeCenter/basic-IT-systems/system-development-life-cycle.aspx.
- Kalakota, R., & Robinson, M. (2001). E-business 2.0: Roadmap for Success. Addison-Wesley Professional.Google Scholar
- Mabert, V. A., & Schoenherr, T. (2001). An Online RFQ System: A Case Study. Practix, 4(2), 1–6.Google Scholar
- Merriam-Webster. (2018). Information Technology. Retrieved January 3, 2018, from https://www.merriam-webster.com/dictionary/information%20technology.
- Oxford College of Procurement. (2018). The Benefits of E-Procurement. Retrieved April 3, 2018, from https://www.oxfordcollegeofprocurementandsupply.com/the-benefits-of-e-procurement/.
- PayStream Advisors. (2015). 2015 E-Procurement Report. Retrieved April 3, 2018, from https://www.paystreamadvisors.com/wp-content/uploads/2016/01/eProcurement-01.05.pdf.
- Schoenherr, T. (2015). The Drivers and Barriers to Effective User Adoption of Procurement Technologies. Zycus/Michigan State University Whitepaper.Google Scholar
- Schoenherr, T. (2018). Leadership and Transformation in Supply Management. Tempe, AZ: Institute for Supply Management®.Google Scholar
- Spiller, P., Reinecke, N., Ungerman, D., & Teixeira, H. (2013). Procurement 20/20: Supply Entrepreneurship in a Changing World. Hoboken, NJ: John Wiley & Sons.Google Scholar
- Tate, W., Fawcett, S., Schoenherr, T., Ashenbaum, B., Carter, C., & Bals, L. (2018). Purchasing & Supply Management: Enhancing Competitiveness and Customer Value. MyEducator.Google Scholar
- Wessels, T. 2013. Inspiration Changes. Coupa One Vision World Tour, PowerPoint Presentation. Retrieved April 3, 2018, from https://www.coupa.com/images/resources/downloads/coupa_one_vision_toronto.pdf.
- World Bank. (2011). E-Procurement Reference Guide. World Bank.Google Scholar