This document discusses e-procurement at IBM and Siemens. It begins by defining e-procurement as using the internet and new technologies to facilitate strategic procurement activities by connecting buyers and suppliers. It then discusses how e-procurement provides tools for improved analysis and linkages across the supply chain. The document also summarizes various e-procurement strategies used at IBM and Siemens like online purchasing systems, e-sourcing, e-tendering, and procurement marketplaces. It concludes by noting some potential cons of e-procurement.

1. E-Procurement By: Nikhil Soni – 91038 Mayank Sharma – 91031

2. Traditional Procurement Cycle Pay Order Receive Source Request Analytics Procurement cycle starts from Raising of the requirements for an item or a service and ends only after settlement of supplier payments.

3. Traditional Procurement Process

4. Constraints

5. For IBM, The acquisition of direct and indirect products and services using the internet and new technologies to facilitate a seamless, end-to-end stream of strategic procurement activities by connecting buyers and suppliers.

6. For IBM, The inclusion of tools and business intelligence systems that enable improved responsiveness and analysis within the procurement organization.

9. E-Procurement’s Popularity Trends

10. Topics for Discussion

11. Web-Based ERP Creating and approving purchasing requisitions, placing purchase orders and receiving goods and services by using a software system based on Internet technology. Product Vendors – SAP, Oracle, The SAGE Group

12. Web-Based ERP

13. Web-Based ERP

14. E-MRO - Maintenance, Repair and Overhaul The same as web-based ERP except that the goods and services ordered are non-product related MRO supplies.

15. E-Sourcing Identifying new suppliers for a specific category of purchasing requirements using Internet technology.

16. E-Sourcing Benefits

17. Reverse Auctioning Using Internet technology to buy goods and services from a number of known or unknown suppliers.

18. E-Tendering Sending requests for information and prices to suppliers and receiving the responses of suppliers using Internet technology. Tender Preparation Tender Publishing Bidder Response Bid Evaluation Contract Award Indent To Tender Request e-Tendering Solution An e-Tendering solution primarily facilitates the ‘Tendering Process’ and may cover from Indenting of Requirements to the placing of contract/PO

20. New Supplier Discovery

21. Close Monitoring of Activities/ Vendor Performance

22. Rich MIS and Analytics

24. Increased business opportunities,

25. Greater degree of transparency

26. Cycle time reduction in participation and award of Contract

28. E-Informing Gathering and distributing purchasing information both from and to internal and external parties using Internet technology.

31. IBM’s SupplyPortal

32. E-Procurement at Siemens

33. Siemens – Click2Procure