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E-Procurement Marketplace PowerPoint PPT Presentation


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E-Procurement Marketplace. Internal Processes. Promotions Management. Retail Fulfillment. Unsaleables Management. Order Management . …Other Applications. Collaborative Planning. Sell-Side Processes. Customer Management. Item Master. Item Master. Item Master. Item Master. Item Master.

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E-Procurement Marketplace

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E procurement marketplace l.jpg

E-Procurement Marketplace


Internal processes l.jpg

Internal Processes

Promotions Management

Retail Fulfillment

Unsaleables Management

Order Management

…Other Applications

Collaborative Planning

Sell-Side

Processes

Customer Management

Item Master

Item Master

Item Master

Item Master

Item Master

Identify and Compare Materials and Suppliers

Demand Forecasting/ Planning

Purchase Aggregation (Group Buy)

Buy-Side

Processes

RFP/RFQ Sourcing & Auctioning

Supplier & Material Rationalization

Product Development Collaboration

Matching Supply with Demand

eProcurement (Requisition & Approvals)

Spend Analysis & Optimization


E procurement marketplace3 l.jpg

E-Procurement Marketplace

Requisition

Catalog

Selection

Distribution

E-Marketplace

Approval

Payment

Buyer

Seller


Buyer benefits l.jpg

Buyer Benefits

  • Compare products and check prices

  • Create purchase order

  • Order tracking

  • Order receiving

  • Payment

    http://www.isteelasia.com


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Purchase Options

  • Catalogs with fixed prices

  • RFQ posting

  • Use RFQ to negotiate

  • Trade leads

  • Alerts

  • Auctions


Option comparison l.jpg

Option Comparison


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Catalog and Content

  • Catalog type

    • Product catalog

    • Service catalog

    • Customer-specific catalogs

  • Content

    • Information on products and services

    • Content imported from multiple suppliers

    • Content aggregation by categories

    • Buyers can retrieve content directly from suppliers

      http://dmena.dmecompany.com/cgi-bin/ncommerce3/ExecMacro/DMENA/R2DMENA/r2_catalog.d2w/report


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Procurement Process

  • Facilitate communication

  • Maintain catalog content

  • Requisitioning and order management

  • Real-time tracking

  • Order fulfillment

  • Invoicing and payment

  • Workflow and transactions

  • Infrastructure

  • Customized processes


User management l.jpg

User Management

  • Who may access catalogs?

  • Who may create or edit requisitions?

  • Who may access purchase orders?

  • Authorization to use e-procurement

  • Enrollment of users

  • Access to trading community

  • Catalog filters

  • Unique contractual relationships between buyers and sellers

  • Supplier identification

  • Shipping parameters


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Pricing and Billing

  • Fixed and negotiated pricing

  • Dynamic pricing

  • Computation of usage charges

  • Distribute operating costs to specific orders


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Data Transmission

  • Messaging

  • Publishing

  • Transactions are sent over the Internet as messages

  • Synchronize with buyer/seller financial posting

  • Security


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Process Step

Manual/EDI

E-Procurement

Time

(Minutes)

(Minutes)

Product Selection

20

3

Availability/Price Check

10

1

Requisition Creation

11

2

Requisition Approval

21

3

PO Generation

11

0

PO Approval

3

0

Send PO to Vendor

14

0

PO Confirmation

4

0

Status Check

11

1

Receive Shipment

12

2

Match Invoice Receipt

8

5

Process Exceptions

8

3

Payment Approval

4

3

Payment Generation

8

5

Process Returns

5

3

Total Minutes/Purchasing Cycle

150

31

Cost/Cycle Time (Avg. $0.50/minute)

$75

$15.50

Price Advantage

Source: NAPM and Commerce One, Inc.

Source: NAPM and Commerce One, Inc.


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Characteristics of structured and unstructured procurements

Structured

Procurement

Unstructured

Procurement

Product characteristics

-Low demand uncertainty

-High demand volume

-Specifications do not change with each order

-High risk of supply uncertainty

-High demand uncertainty

-Low demand volume

-Greater product variety

-Low risk of supply uncertainty

Process characteristics

-High level of automation

-Mostly of re-orders

-Product selection, supplier selection and order details and coded in to procedures

-No approvals needed for individual transactions

-Orders initiated manually

-Mostly of one-time orders

-Product selection, supplier selection and order details vary by transaction

-Approvals are required for most transactions

Examples

-Tooling items

-Welding supplies

-Custom replacement parts

-Office furniture

-Office equipment


Effects of procurement types on organization and information systems l.jpg

Effects of procurement types on organization and information systems


Selling online l.jpg

Selling Online

  • Create and deliver product content

  • Brand messaging and promotions

  • Deliver customer service

  • Punch-out capability

  • Consolidate catalogs using scattered data in different databases


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Order Processing

  • Different channels

    • Web, call centers, cell phones, and brick and mortar locations

  • Customer-specific catalog

  • Buyers must receive targeted content relevant to their products

  • Need to update content for customization

    • Use of data-mining technology

  • Enforce customer-specific contracts and business rules

  • Track contract terms and conditions


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Customized Catalogs

Customer 1

Customer 2

Customer 3

Product

Catalog 1

Product

Catalog 2

Product

Catalog 3

Products

Pricing

Promotion

Content

E-Marketplace

http://www.x-solutions.poet.com/eu/solutions/xsolutions/buyer/xbuy.html


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Selling Channels

  • Existing contracts (fixed price sales)

  • Auction for surplus goods

  • Distributors


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Distributor Model

  • Connects sellers to distributors

  • Replenishment orders sent to sellers automatically when inventory runs out

  • Buyer sees distributor’s price and product availability

  • Distributor can negotiate with sellers for discounts


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Distributor Model

Manufacturer

1

ORDER

CONFIRMATIONAND

STATUS

ORDER

RESPONSE

Buyer 1

Manufacturer

2

PURCHASE

ORDERS

SALES

ORDERS

Distributor

Buyer 2

Manufacturer

3

Manufacturer

4

Catalog

Buyer 3

Contracts

Orders

Buyer Purchasing Scenario

1.Buyer views distributor catalog and contract prices

2.Manufacturer responds to distributor on sales orders

3.Buyer receives order confirmation

Manufacturer

5

http://www.e-distributor.com/index.html


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Differentiation

  • Loss of differentiation

    • Can only display standard product information

  • Customer-specific catalogs

  • Punch-out capability to access specific supplier’s site (from e-marketplace)

  • Evaluate multiple product information and return to e-marketplace to complete transactions


Punch out capability l.jpg

Punch-out Capability

Punch out to Supplier 2

Supplier 2

Web Site

Supplier 1

Supplier 2

Supplier 3

Buyers

Suppliers

E-Marketplace


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