e-Procurement: Managing Successful e-Procurement Implementation(MB Finance)

e-Procurement is currently one of the hottest topics in the Internet arena. However, many organisations, fearful about the expense and risk, need advice and guidance about proceeding with this new technology. This briefing guides you through the procurement process. It describes the benefits that 'best practice' procurement yield and why you need to take a step-by-step approach to reclaiming your procurement process before wandering into the new and exciting world of e-procurement. It offers lessons from organisations on the 'bleeding edge' of this new wave of technology. Any organisation, big or small, considering making the investment into e-procurement can use this briefing both as a reference and a training manual. By following the advice provided, you will achieve the substantial benefits that managed procurement can generate. Contents include: *Procurement Lifecycle*Redefining the procurement strategy *How is e-buying different from traditional buying? *The biggest challenge suppliers face: e-catalogues *Marketsites *Benefits of e-procurement *Best Practice Procurement *Keys to successful e-procurement implementation

Table of Contents:
Preface PART ONE: THE PRACTICAL GUIDE e-Procurement: an introduction *Buying is an essential function in every organization *Putting e-procurement into perspective *AMEX survey *Traditional location of the purchasing department *Systems that the purchasing function uses *The role of the buyer The traditional procurement life cycle *Traditional life cycle *A need is identified *Approve the requisition *Decide from where to source the need *Large new purchases may require a request for quotation *Create a purchase order *High value orders may need additional approval *Record goods receipt *Supplier submits invoice *Invoice matched to GRN and purchase order *Supplier payment generated and purchase order closed Model procurement systems *General *Suppliers *Catalogues *Requisitions *Request for quotations *Buyer queues *Purchase orders *Commitment accounting *Receiving and returns *Invoicing and payments *Workflow *Interfaces *Shortcomings Implementing an e-procurement system road map *General *Define a comprehensive procurement strategy *Develop procurement policies and procedures *Start with an in-house procurement system *Implement a procurement improvement programme *Identify an e-procurement pilot project *Implement the pilot project *Evaluate the lessons learned and benefits gained Benefits of professionally managed procurement *Overview *Eliminate maverick buying *Make use of purchasing muscle *Control budgets better *Track organization spend *Automate authorization of spend *Improve terms and conditions *Decrease administration costs *Reduce order cycle time *Eliminate duplicate payments *Self-billing Redefining the procurement strategy *General *Document spend by category of goods and services *Define procurement policies *Write procedures How e-buying differs from traditional buying *New e-procurement software that connects to the Internet *Availability of the procurement system *Communication with suppliers is changing *Requisitions are simplified *New methods of placing purchase orders *Recording receipt of goods and services *Payment methods are being transformed *How supplier relationships are being revolutionized *Security must become a high priority Benefits of e-procurement *Speed supplier communications *Instant access to up-to-date prices and supplier offers *Comparison shopping easier *24 x 7 access *Reduce paperwork *Supply chain management simplified *Reduce order costs *Shorten order cycle time *Greater access to procurement functions *Identifying new sources of supply *Comparing traditional and e-procurement processes *The MasterCard difference The biggest challenge suppliers face: e-catalogues *What are e-catalogues? *The content of e-catalogues is critical to e-business *Catalogues can be hosted in different locations *The challenges of building and maintaining catalogues *Benefits of e-catalogues to suppliers *e-catalogue characteristics Market sites *What is a market site? *Market site services *Characteristics of market sites *Market sites fall into different types Best practice procurement *Best practice produces best results *Limiting the number of active suppliers *Establish contract orders *Automated workflow of approvals *Eliminate non-matching invoices *Construct an internal item catalogue *Ensure compliance Keys to successful e-procurement implementations *Lessons learned *Get supplier buy in *Set up workable processes and procedures *Start with a prototype *Work with suppliers to build usable catalogues *Integrate the e-procurement system with back office and data warehouse systems *Transmission of electronic documents between organizations *eliminates administration overheads *Automate spend areas that are under control Conclusions Benefits too great to ignore The new world of e-procurement is here Must plan for it The solution must be flexible Look for quick wins Start now PART TWO: THE PROBLEM ISSUES Understanding the hype and negative claims The positive claims appearing in the media Media concern: not all e-procurement models succeed *The choices *The private exchange *The market sites or marketplaces *The big exchanges or marketplaces created so far Media concern: key players in trouble *Ariba *Commerce One Media concern: security is questionable Media concern: rethink procurement strategy Media concern: suppliers not playing ball Media concern: market sites stopped by authorities Media concern: e-procurement experience lacking Media concern: e-procurement is expensive to implement Media concern - B2B does not exist Glossary

About the Author :
Dale Neef is a management consultant and founder and principal of DNA Consulting, where he helps executives develop and implement their e-business and e-procurement strategies. He has worked for IBM and CSC and was a fellow at Ernst & Young's Center for Business Innovation. He has written or edited numerous books on business and the economy, including The Knowledge Economy and A Little Knowledge Is A Dangerous Thing. He earned his doctorate from Cambridge University.

Review :
Both parts of the book are well written and logically laid out ... is brilliant as a guide to all those around an implementation who need to get a grip with the key issues fast. The second section will be of great use to all those needing to convince their boards about the need for e-procurement. Overall, this is a very useful and well-written book, and a great addition to the shelves of anyone considering implementing e-procurement. "Ian Russell, programme director, e-procurement Barclays Bank """.