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Information Technology in Procurement Activities - Essay Example
Author : tschowalter
Pages 24 (6024 words)
The study observes a complete background of Procurement and Sourcing activities in Supplier Value chain system and evaluates the need of Information technology in Procurement activities. The study also observes the features and forms of e-procurement operations…
A shorter purchasing cycle to maintain lower inventory levels and respond more quickly to stock-outs is the core business value through e-procurement. Along with some strategical challenges on implementation, study observed standardization and internationalization of problems as few limitations of the technology integration with e-procurement.
In the late 1990s, big corporations managed their supply chains with a combination of paper, faxes, e-mail, and proprietary electronic data interchange networks. But these systems provided opportunities for errors. Executives responsible for maintaining an unceasing flow of supplies to keep production lines running and distant field operations on schedule were at the mercy of primitive purchasing processes that were beyond their control.
Though they could select from a host of qualified suppliers, they didn't have the most convenient ways to find the perfect supplier with exactly the right product at just the right price. Alternatively, it could take days or weeks to have the requisitions signed by executives who spend most of their time on the road. A critical pre-requisite for success in digital economy is the implementation of an integrated value chain that extends across - and beyond - the enterprise.
The term "extended enterprise" represen ...