e-procurement issues & perspectives 1 group 4 presented by: narayan kumar26sameer karwal40...

E-ProcurementIssues & Perspectives 1Group 4

Presented By:Presented By:Narayan KumarNarayan Kumar 2626 Sameer KarwalSameer Karwal 4040Puneet PuriPuneet Puri 3030 Saurabh KumarSaurabh Kumar 0000Rahul SoniRahul Soni 3232 Vijay PratapVijay Pratap 0000Sachit BhatiaSachit Bhatia 3838 Kapil Vuthoo Kapil Vuthoo 0000


Presentation Flow…Presentation Flow…Presentation Flow…Presentation Flow…

ProcurementProcurement E-ProcurementE-Procurement BenefitsBenefits Best Practice ApproachBest Practice Approach E-Procurement ModelsE-Procurement Models Global PerspectiveGlobal Perspective Indian PerspectiveIndian Perspective Challenges & RisksChallenges & Risks EnablersEnablers Trends & FutureTrends & Future ConclusionConclusion

ProcurementProcurement E-ProcurementE-Procurement BenefitsBenefits Best Practice ApproachBest Practice Approach E-Procurement ModelsE-Procurement Models Global PerspectiveGlobal Perspective Indian PerspectiveIndian Perspective Challenges & RisksChallenges & Risks EnablersEnablers Trends & FutureTrends & Future ConclusionConclusion


Procurement ProcessProcurement ProcessProcurement ProcessProcurement Process

PlanningTender Notice

Receipt of bids

Tech bidEvaluation

Fin. bidEvaluation

AwardReceipt of GoodsPayment


What is E-Procurement?What is E-Procurement?What is E-Procurement?What is E-Procurement?

SuppliersBuyer

Web Based Application

Software

E-Procurement is the value-added application of Internet and e-commerce solutions to facilitate, integrate and streamline the entire procurement process, from buyer to supplier and back.


Supports Online Reverse AuctionSupports Online Reverse Auction

Core ObjectivesOf e-procurementCore Objectives

Of e-procurement

Real Time MonitoringReal Time Monitoring

Process Efficiency Process Efficiency

New supplier discovery

New supplier discovery

Cost Reduction

Cost Reduction

Paper less environmentPaper less

environment

TransparencyTransparency

Benefits of e-ProcurementBenefits of e-ProcurementBenefits of e-ProcurementBenefits of e-Procurement

StreamliningProcurementprocesses


Benefits of e-ProcurementBenefits of e-ProcurementBenefits of e-ProcurementBenefits of e-Procurement

Strategic BenefitsStrategic Benefits Align Procurement strategy with procurement GoalsAlign Procurement strategy with procurement Goals Strengthen Alliances for product innovation Strengthen Alliances for product innovation

combining complementary capabilities in discovery and development stage.combining complementary capabilities in discovery and development stage. Exchanging key suppliers with market informationExchanging key suppliers with market information

Reduces RisksReduces Risks Diversify risk with key suppliers for product failure.Diversify risk with key suppliers for product failure.

Reduces Spending and TimeReduces Spending and Time 90% Conversion of spot purchasing into contract purchasing90% Conversion of spot purchasing into contract purchasing

Strategic BenefitsStrategic Benefits Align Procurement strategy with procurement GoalsAlign Procurement strategy with procurement Goals Strengthen Alliances for product innovation Strengthen Alliances for product innovation

combining complementary capabilities in discovery and development stage.combining complementary capabilities in discovery and development stage. Exchanging key suppliers with market informationExchanging key suppliers with market information

Reduces RisksReduces Risks Diversify risk with key suppliers for product failure.Diversify risk with key suppliers for product failure.

Reduces Spending and TimeReduces Spending and Time 90% Conversion of spot purchasing into contract purchasing90% Conversion of spot purchasing into contract purchasing


Cost BenefitsCost BenefitsCost BenefitsCost Benefits

Cost reduction by 10% *Cost reduction by 10% * e-Tender, e-Auction and e-Contract Management e-Tender, e-Auction and e-Contract Management

Avoid grouping of BiddersAvoid grouping of Bidders

Avoid Mafia Avoid Mafia

User friendly and paperless procurement processUser friendly and paperless procurement process

Savings in processing time by 30% - 40% *Savings in processing time by 30% - 40% * From e-Indent to decision makingFrom e-Indent to decision making

* (As per the * (As per the report of PWC)report of PWC)

Cost reduction by 10% *Cost reduction by 10% * e-Tender, e-Auction and e-Contract Management e-Tender, e-Auction and e-Contract Management

Avoid grouping of BiddersAvoid grouping of Bidders

Avoid Mafia Avoid Mafia

User friendly and paperless procurement processUser friendly and paperless procurement process

Savings in processing time by 30% - 40% *Savings in processing time by 30% - 40% * From e-Indent to decision makingFrom e-Indent to decision making

* (As per the * (As per the report of PWC)report of PWC)


Supplier SelectionSupplier SelectionSupplier SelectionSupplier Selection

Best Practice Best Practice BenefitsBenefits ChallengesChallenges E-procurement E-procurement Solution Feature Solution Feature

Able to generate Able to generate prospective list of prospective list of

suppliers from suppliers from existing database existing database

Drastically cut time Drastically cut time and logistics billsand logistics bills

Lack of data Lack of data aggregation,aggregation,

Cleansing and analytical Cleansing and analytical capabilitiescapabilities

Category Management, Category Management, Search Capabilities and Search Capabilities and friendly user interfacefriendly user interface

Accurate evaluation of Accurate evaluation of suppliers based on suppliers based on

multiple factors with multiple factors with attached documentsattached documents

Cuts time and cost in Cuts time and cost in evaluation and evaluation and reduce bias in reduce bias in

supplier selectionsupplier selection

Difficulty in defining Difficulty in defining and integrating and integrating quantitative and quantitative and

qualitative qualitative parametersparameters

Portals for better internal Portals for better internal collaboration, collaboration,

integration tools and integration tools and analytics to evaluate bid analytics to evaluate bid

optionsoptions


Contract ManagementContract ManagementContract ManagementContract Management


Clear definition of Clear definition of roles of people, roles of people,

process and process and standardsstandards

Brings Accountability, Brings Accountability, Sets Standards Sets Standards

reduces maverick reduces maverick spending, cuts spending, cuts

overheads overheads

Resistance to changeResistance to change Change ManagementChange Management Contract Compliance Contract Compliance

toolstools

Standards and targets Standards and targets for contract setfor contract set

Improves performanceImproves performance Lack of Analytics to Lack of Analytics to measure performancemeasure performance

Contract evaluation Contract evaluation

Strong external Strong external compliancecompliance

To ensure reliability and To ensure reliability and compliance of compliance of

appropriate contract appropriate contract termsterms

Inability to real time Inability to real time tracking and tracking and

communication with communication with suppliers suppliers

Portals for real time Portals for real time communication. communication.

Automatic triggering Automatic triggering of eventsof events

Strong internal Strong internal compliancecompliance

Reduce Maverick spending Reduce Maverick spending Lack of purchase standards Lack of purchase standards and manual errorsand manual errors

Automation of events to Automation of events to eliminate manual eliminate manual

errors.errors.


Procurement ProcessProcurement ProcessProcurement ProcessProcurement Process


Automation of Automation of possible possible

Procurement Procurement activities:activities:

From Purchase From Purchase requisition to requisition to

payment.payment.

Dramatically cuts Dramatically cuts time and cost time and cost and increases and increases

reliabilityreliability

Lack of Lack of coordination of coordination of departments and departments and segregated data segregated data and documents and documents and Supplier and Supplier

BehaviorBehavior

Portals both for Portals both for internal as well as internal as well as

external external communicationcommunication

Integration of Integration of

applicationsapplications


Buyer-Centric E-Procurement ModelBuyer-Centric E-Procurement Model Buyer-Centric E-Procurement ModelBuyer-Centric E-Procurement Model

The buyer is at the hub with suppliers connected at the end of the spokes


Buyer-Centric E-Procurement ModelBuyer-Centric E-Procurement ModelBuyer-Centric E-Procurement ModelBuyer-Centric E-Procurement Model

Buying OrganizationBuying Organization

ImplementsSoftware

Obtains

Catalogue Data

AggregatesData

SingleCatalogue


Seller-Centric E-Procurement ModelSeller-Centric E-Procurement ModelSeller-Centric E-Procurement ModelSeller-Centric E-Procurement Model

The seller is the centre of the hub, with buyers connected at the spokes

• Buyer Use Suppliers Internet • Browses Catalogue• Places Orders


‘System', provided by a third party, is at the hub

• Buying and selling organizations trade • The common marketplace Hosts Supplier Catalogues• provides electronic transaction capabilities

E-Market PlaceE-Market PlaceE-Market PlaceE-Market Place


Buyers implement software

• Maintain Local Catalogue• Access Suppliers Catalogue

Open Trading Environment ModelOpen Trading Environment ModelOpen Trading Environment ModelOpen Trading Environment Model

Suppliers are Free to Choose

• Maintain Catalogue or Marketplace• Visible to Widest Possible Market

Flexibility


E-Procurement – Global PhenomenaE-Procurement – Global PhenomenaE-Procurement – Global PhenomenaE-Procurement – Global Phenomena

E-Procurement is not a local phenomena but a global one, E-Procurement is not a local phenomena but a global one, Enabled global sourcing Enabled global sourcing

of goods and servicesof goods and services

Reduction of CostsReduction of Costs

Breaking Trade BarriersBreaking Trade Barriers

Reduction in AgentsReduction in Agents

Benchmark Report –04 by Aberdeen Group indicates the Benchmark Report –04 by Aberdeen Group indicates the followingfollowing Reduced requisition-to-order cycles by 66%Reduced requisition-to-order cycles by 66%

Cost Reduction : up to 25% or moreCost Reduction : up to 25% or more

E-Procurement is not a local phenomena but a global one, E-Procurement is not a local phenomena but a global one, Enabled global sourcing Enabled global sourcing

of goods and servicesof goods and services

Reduction of CostsReduction of Costs

Breaking Trade BarriersBreaking Trade Barriers

Reduction in AgentsReduction in Agents

Benchmark Report –04 by Aberdeen Group indicates the Benchmark Report –04 by Aberdeen Group indicates the followingfollowing Reduced requisition-to-order cycles by 66%Reduced requisition-to-order cycles by 66%

Cost Reduction : up to 25% or moreCost Reduction : up to 25% or more


E-Procurement – EuropeE-Procurement – EuropeE-Procurement – EuropeE-Procurement – Europe

Adoption from year 2000 Adoption from year 2000 E-procurement accounts for E-procurement accounts for

33% of E-business activities. 33% of E-business activities. UK is the most prominent UK is the most prominent

player in Europe.player in Europe. Followed by Nordics, Followed by Nordics,

Switzerland, the Switzerland, the Netherlands. Netherlands.

Germany and France less Germany and France less dominating role in B2B dominating role in B2B ecommerce, ecommerce,

Adoption from year 2000 Adoption from year 2000 E-procurement accounts for E-procurement accounts for

33% of E-business activities. 33% of E-business activities. UK is the most prominent UK is the most prominent

player in Europe.player in Europe. Followed by Nordics, Followed by Nordics,

Switzerland, the Switzerland, the Netherlands. Netherlands.

Germany and France less Germany and France less dominating role in B2B dominating role in B2B ecommerce, ecommerce,

E-Procurement Trends (Europe)

0

200

400

600

800

1000

1200

1400

1600

1800

1999 2000 2001 2002 2003 2004 2005

Year

Vol

ume

eDistribution eMarketPlaces eProcurement

E-Procurement Trends (Europe)

0

200

400

600

800

1000

1200

1400

1600

1800

1999 2000 2001 2002 2003 2004 2005

Year

Vol

ume

eDistribution eMarketPlaces eProcurement


E-Procurement – AsiaE-Procurement – AsiaE-Procurement – AsiaE-Procurement – Asia

e-Sourcing's Potential Impact on National GDP

$151,000

$89,700

$74,859

$92,700

$122,130

$96,417

$79,202

$159,438

$128,494

$99,142

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

Indonesia Malaysia Philippines Singapore Thailand

GDP Before e-Sourcing GDP After e-Sourcing

in $US M illions

e-Sourcing's Potential Impact on National GDP

$151,000

$89,700

$74,859

$92,700

$122,130

$96,417

$79,202

$159,438

$128,494

$99,142

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

Indonesia Malaysia Philippines Singapore Thailand

GDP Before e-Sourcing GDP After e-Sourcing

in $US M illions Adoption from year 2002 Adoption from year 2002 E-procurement mostly in E-procurement mostly in

private businesses. private businesses. South Asians countries South Asians countries

(S’pore,Malaysia,Thailand) (S’pore,Malaysia,Thailand) topmost users.topmost users.

Followed by Japan & Korea. Followed by Japan & Korea. India – Increasing rapidlyIndia – Increasing rapidly China – Its growingChina – Its growing


Lumen AGLumen AGLumen AGLumen AG

CompanyCompany commercial lighting repair company commercial lighting repair company

8 locations in Europe, 8 locations in Europe,

ProblemProblem streamline its purchasing process streamline its purchasing process

for both repair parts and ordinary office supplies and materials. for both repair parts and ordinary office supplies and materials.

Wait Time > 1 weekWait Time > 1 week

Central purchasing group spent time chasing paper Central purchasing group spent time chasing paper

No focus on locating new suppliers No focus on locating new suppliers

and securing better prices and terms.and securing better prices and terms.


Lumen AGLumen AG

SolutionSolution An Internet-based e-procurement systemAn Internet-based e-procurement system Empowering staffEmpowering staff Distributed DeliveryDistributed Delivery Central purchasing group was relieved of overseeing Central purchasing group was relieved of overseeing

transactions below a set threshold. transactions below a set threshold. Direct real-time link to suppliers Direct real-time link to suppliers Increased flexibility Increased flexibility Purchasing authority for dispersed employees, Purchasing authority for dispersed employees, Simplified buying processesSimplified buying processes


FORD FORD

CompanyCompany Auto manufacturer Auto manufacturer

Locations WorldwideLocations Worldwide

ProblemProblem High Purchase costsHigh Purchase costs

Lot of procedures & processesLot of procedures & processes

Tedious approval processTedious approval process

Solution – E-Procurement SystemSolution – E-Procurement System New purchasing process, New purchasing process,

Empowerment of Employee to place orders online.Empowerment of Employee to place orders online.

Purchase approval in minutesPurchase approval in minutes

Cost Cutting by 30%.Cost Cutting by 30%.


Labinal Labinal Labinal Labinal

CompanyCompany an automotive and aeronautics groupan automotive and aeronautics group

ProblemProblem High Purchase costsHigh Purchase costs

Lot of procedures & processesLot of procedures & processes

Indirect purchasesIndirect purchases

Solution – E-Procurement SystemSolution – E-Procurement System Web Based Tool, Web Based Tool,

More efficient than manual processMore efficient than manual process

25% reduction in non-production procurement cost25% reduction in non-production procurement cost

Halved unit acquisition costs.Halved unit acquisition costs.


CompranetCompranetCompranetCompranet

CompanyCompany A Mexican Government InitiativeA Mexican Government Initiative

ProblemProblem No consistent controls on purchases No consistent controls on purchases

procurement processes were costly procurement processes were costly

plagued by corruption; plagued by corruption;

acquisitions were overpriced; acquisitions were overpriced;

suppliers were concentrated in the Mexico City area. suppliers were concentrated in the Mexico City area.

Solution – E-Procurement SystemSolution – E-Procurement System Web-based on-line procurement system Web-based on-line procurement system

Variety of hardware and software.Variety of hardware and software.

government suppliers can submit their proposals via the Web site. government suppliers can submit their proposals via the Web site.

Increased transparencyIncreased transparency


GlaxoSmithKlineGlaxoSmithKlineGlaxoSmithKlineGlaxoSmithKline

CompanyCompany Research-based pharmaceutical company Research-based pharmaceutical company

80 manufacturing sites in 37 countries 80 manufacturing sites in 37 countries

24 research and development centers globally.24 research and development centers globally.

Annual revenues total $37.2 billionAnnual revenues total $37.2 billion

ProblemProblem GSK relied on paper catalog and phone communication GSK relied on paper catalog and phone communication

Waste valuable time scientists Waste valuable time scientists

Archaic buying process Archaic buying process

No benefit of negotiated deals with suppliers.No benefit of negotiated deals with suppliers.

GSK needed a way to make the most of theirGSK needed a way to make the most of their


GlaxoSmithKlineGlaxoSmithKlineGlaxoSmithKlineGlaxoSmithKline

SolutionSolution Solution contract compliance improved > 20%Solution contract compliance improved > 20%

supplier content directly allowed GSK supplier content directly allowed GSK

saving more than $500,000 a year. saving more than $500,000 a year.

streamlined GSK’s procurement processstreamlined GSK’s procurement process

Manual purchase orders have been eliminated,Manual purchase orders have been eliminated,


Rolls-RoyceRolls-RoyceRolls-RoyceRolls-Royce

CompanyCompany Leading producer of power systemsLeading producer of power systems

Operates in 4 global markets civil aerospace, defense aerospace, Operates in 4 global markets civil aerospace, defense aerospace, marine, and energy. marine, and energy.

ProblemProblem Large quantity of non-value-added productsLarge quantity of non-value-added products

Poor Visibility into annual spending on low value goods & Poor Visibility into annual spending on low value goods & servicesservices

No Consolidation based on SuppliersNo Consolidation based on Suppliers

Humongous paperworkHumongous paperwork

Manual Key Entries of records leading to inefficienciesManual Key Entries of records leading to inefficiencies


Rolls-RoyceRolls-RoyceRolls-RoyceRolls-Royce

SolutionSolution web-based catalog-ordering systemweb-based catalog-ordering system

Direct purchasingDirect purchasing

No pre-approvalsNo pre-approvals

No involvement of purchase department for non vale added No involvement of purchase department for non vale added goodsgoods

Supplier base rationalized (5000 reduced to 10)Supplier base rationalized (5000 reduced to 10)

Development of strategic partnerships with suppliersDevelopment of strategic partnerships with suppliers

Reduction in inventory stock value levelsReduction in inventory stock value levels


MetalJunction.comMetalJunction.comMetalJunction.comMetalJunction.com

Re-engineering of the buying and selling


MetalJunction.comMetalJunction.comMetalJunction.comMetalJunction.com

Split into 2 Major Business Units (Commercejunction and Split into 2 Major Business Units (Commercejunction and Metaljunction)Metaljunction) Specific Requirements of Clients/CustomersSpecific Requirements of Clients/Customers

Specific procedures for both the functionsSpecific procedures for both the functions

Knowledge and Information management for the two functionsKnowledge and Information management for the two functions

Benefits given by various facets of MetalJunction:Benefits given by various facets of MetalJunction: e-Procurement : Cost Saving of 5.96%e-Procurement : Cost Saving of 5.96%

e-Selling : Reduction of Cycle Timee-Selling : Reduction of Cycle Time

e-Collection : Better Cash Managemente-Collection : Better Cash Management

Channel finance : Finance Generated in 2003 Rs 262 Cr.Channel finance : Finance Generated in 2003 Rs 262 Cr.

Split into 2 Major Business Units (Commercejunction and Split into 2 Major Business Units (Commercejunction and Metaljunction)Metaljunction) Specific Requirements of Clients/CustomersSpecific Requirements of Clients/Customers

Specific procedures for both the functionsSpecific procedures for both the functions

Knowledge and Information management for the two functionsKnowledge and Information management for the two functions

Benefits given by various facets of MetalJunction:Benefits given by various facets of MetalJunction: e-Procurement : Cost Saving of 5.96%e-Procurement : Cost Saving of 5.96%

e-Selling : Reduction of Cycle Timee-Selling : Reduction of Cycle Time

e-Collection : Better Cash Managemente-Collection : Better Cash Management

Channel finance : Finance Generated in 2003 Rs 262 Cr.Channel finance : Finance Generated in 2003 Rs 262 Cr.


CDAC’s etradehub.inCDAC’s etradehub.inCDAC’s etradehub.inCDAC’s etradehub.in

Government department, PSU’s can useGovernment department, PSU’s can use e-tenderinge-tendering

e-Auctionse-Auctions

Rate ContractsRate Contracts

Post Contract Management Post Contract Management

etradehub supports the following procurement routesetradehub supports the following procurement routes e-tendering (supports all types of tenders) e-tendering (supports all types of tenders)

e-Auction (supports all types of auction) e-Auction (supports all types of auction)

e-Rate Contracts (Catalogue based Procurement) e-Rate Contracts (Catalogue based Procurement)

Government department, PSU’s can useGovernment department, PSU’s can use e-tenderinge-tendering

e-Auctionse-Auctions

Rate ContractsRate Contracts

Post Contract Management Post Contract Management

etradehub supports the following procurement routesetradehub supports the following procurement routes e-tendering (supports all types of tenders) e-tendering (supports all types of tenders)

e-Auction (supports all types of auction) e-Auction (supports all types of auction)

e-Rate Contracts (Catalogue based Procurement) e-Rate Contracts (Catalogue based Procurement)


Benefits of etradhub.inBenefits of etradhub.inBenefits of etradhub.inBenefits of etradhub.in

Buyers end Buyers end facilitates tendering authority to create online tenderfacilitates tendering authority to create online tender

including technical bid and financial bidincluding technical bid and financial bid

After receiving bids, software performs the evaluation taskAfter receiving bids, software performs the evaluation task

Result of tender evaluation can be viewed on the web. Result of tender evaluation can be viewed on the web.

Supplier end Supplier end facilitates the bidders to download the tender documentfacilitates the bidders to download the tender document

attend pre bid meeting electronicallyattend pre bid meeting electronically

submission of EMD’s thru secured payment gatewaysubmission of EMD’s thru secured payment gateway

submission of digitally signed technical bid and financial bidsubmission of digitally signed technical bid and financial bid

Buyers end Buyers end facilitates tendering authority to create online tenderfacilitates tendering authority to create online tender

including technical bid and financial bidincluding technical bid and financial bid

After receiving bids, software performs the evaluation taskAfter receiving bids, software performs the evaluation task

Result of tender evaluation can be viewed on the web. Result of tender evaluation can be viewed on the web.

Supplier end Supplier end facilitates the bidders to download the tender documentfacilitates the bidders to download the tender document

attend pre bid meeting electronicallyattend pre bid meeting electronically

submission of EMD’s thru secured payment gatewaysubmission of EMD’s thru secured payment gateway

submission of digitally signed technical bid and financial bidsubmission of digitally signed technical bid and financial bid


Govt. of Andhra PradeshGovt. of Andhra PradeshGovt. of Andhra PradeshGovt. of Andhra Pradesh


www.eprocurement.gov.inwww.eprocurement.gov.inwww.eprocurement.gov.inwww.eprocurement.gov.in


Benefits to GOAP: Cost Savings

-25.00124166107eProcurementMode

2003-04

-9.00758353Conventional Mode

2003-04

-8.65115126125Conventional Mode

2002-03

- 2.65166177188Conventional Mode

2001-02

% discount

TenderedContract Value in $(Million)

Estimated Contract Value in $(Million)

No of tenders

Mode of procurement

Year

Source: Commissionerate of Tenders, GOAP


All Around BenefitAll Around Benefit

Advantage to Govt.Advantage to Govt. In First Year of implementation : Tender Cycle Time reduced from 90 to 135 days In First Year of implementation : Tender Cycle Time reduced from 90 to 135 days

Average reduction of 20% in costAverage reduction of 20% in cost

Advantage to Private PartyAdvantage to Private Party Receives 0.24% as transaction fees on the total volume of each projectReceives 0.24% as transaction fees on the total volume of each project

Advantage to Bidder/ Supplier Advantage to Bidder/ Supplier Real time availability of tender statusReal time availability of tender status

Single Window contact for all information Single Window contact for all information


Anand GroupAnand GroupAnand GroupAnand Group

33 Plants in 8 States33 Plants in 8 States Decentralized Operations till 2004Decentralized Operations till 2004

E-Procurement InitiativeE-Procurement Initiative Centralized procurement of Key commoditiesCentralized procurement of Key commodities

Centralized vendor selectionCentralized vendor selection

E-sourcing via Baazi.comE-sourcing via Baazi.com

Procurement worth Rs. 1000 CrProcurement worth Rs. 1000 Cr

Savings realized 7 – 8%Savings realized 7 – 8%


E-Procurement - ChallengesE-Procurement - ChallengesE-Procurement - ChallengesE-Procurement - Challenges

Commitment of Top ManagementCommitment of Top Management Change Management IssuesChange Management Issues Inability to Capture Required BenefitsInability to Capture Required Benefits Cost & Time OverrunCost & Time Overrun Computerized AuditingComputerized Auditing

Commitment of Top ManagementCommitment of Top Management Change Management IssuesChange Management Issues Inability to Capture Required BenefitsInability to Capture Required Benefits Cost & Time OverrunCost & Time Overrun Computerized AuditingComputerized Auditing


E-Procurement - RisksE-Procurement - RisksE-Procurement - RisksE-Procurement - Risks

ConfidentialityConfidentiality Proving to buyers that the personal information will remain Proving to buyers that the personal information will remain

confidentialconfidential

IntegrityIntegrity Proving to buyers that the sellers are who they say they areProving to buyers that the sellers are who they say they are

Authentication & Non-RepudiationAuthentication & Non-Repudiation Seller will not be able to refute the occurrence of a valid Seller will not be able to refute the occurrence of a valid

transactiontransaction

Availability – 24 x 7Availability – 24 x 7

ConfidentialityConfidentiality Proving to buyers that the personal information will remain Proving to buyers that the personal information will remain

confidentialconfidential

IntegrityIntegrity Proving to buyers that the sellers are who they say they areProving to buyers that the sellers are who they say they are

Authentication & Non-RepudiationAuthentication & Non-Repudiation Seller will not be able to refute the occurrence of a valid Seller will not be able to refute the occurrence of a valid

transactiontransaction

Availability – 24 x 7Availability – 24 x 7


Enablers : Design FactorsEnablers : Design FactorsEnablers : Design FactorsEnablers : Design Factors

• TechnologyTechnology

• Security MechanismSecurity Mechanism

• Procurement process knowledge baseProcurement process knowledge base

• Integration with other Systems (Payment Integration with other Systems (Payment Gateways, Supplier’s systems, MRP’s etc)Gateways, Supplier’s systems, MRP’s etc)

• Audit Trail MechanismsAudit Trail Mechanisms

• Notification MechanismsNotification Mechanisms

• TechnologyTechnology

• Security MechanismSecurity Mechanism

• Procurement process knowledge baseProcurement process knowledge base

• Integration with other Systems (Payment Integration with other Systems (Payment Gateways, Supplier’s systems, MRP’s etc)Gateways, Supplier’s systems, MRP’s etc)

• Audit Trail MechanismsAudit Trail Mechanisms

• Notification MechanismsNotification Mechanisms


E-Procurement - Trends & FutureE-Procurement - Trends & FutureE-Procurement - Trends & FutureE-Procurement - Trends & Future

Finding Suppliers - Reverse auctionsFinding Suppliers - Reverse auctions

Managing Suppliers - Supplier relationship Managing Suppliers - Supplier relationship management (SRM)management (SRM)

Inventory tracking (e.g. RFID..) integrated Inventory tracking (e.g. RFID..) integrated with procurement through software with procurement through software applications.applications.

Finding Suppliers - Reverse auctionsFinding Suppliers - Reverse auctions

Managing Suppliers - Supplier relationship Managing Suppliers - Supplier relationship management (SRM)management (SRM)

Inventory tracking (e.g. RFID..) integrated Inventory tracking (e.g. RFID..) integrated with procurement through software with procurement through software applications.applications.


Conclusion Conclusion Conclusion Conclusion

E-procurement system must be an integral E-procurement system must be an integral part of any company’s supply chain and part of any company’s supply chain and

corporate strategy to enable it to sustain its corporate strategy to enable it to sustain its competitive advantage.competitive advantage.

E-procurement system must be an integral E-procurement system must be an integral part of any company’s supply chain and part of any company’s supply chain and

corporate strategy to enable it to sustain its corporate strategy to enable it to sustain its competitive advantage.competitive advantage.

e-procurement issues & perspectives 1 group 4 presented by: narayan kumar26sameer karwal40...

Documents