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Deadline
20 December 2007
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Description
E-PROCUREMENT
Outline layout:
The concept of procurement is old but the process of procurement has taken dramatic changes. There has been a great deal of argument whether public procurement or automating procurement is effective; Information technology became answer to many questions and it became successful solution to the administrative problems. E-procurement or electronic procurement is said to be part of business which is used to make purchases online, establish agreements for purchasing products ,automating accounting system, electronic ordering and auctions. In this paper potential of organizational e-business, supplier readiness, growth of market due to success of e-procurement, benefits of e-procurement, and the current technologies involved has been carefully studied. Literature review and extensive research has been modelled in these areas. An application has been designed that allows employees, managers and group administrators to streamline the process of procuring items using ASP.NET as a platform and SQL as back end database .
Background to problem:
Daily business have some routine works that are must do like paper works, purchasing, selling that involve lot of time, risk and labour. Although they are boring and laborious task, firms cannot do away with it .Unfortunately these are monotonous tasks do little to add to your bottom line. E-procurement is the process which gave business new identity and made the process ease just by having web browser, email client and internet connection. Customer trust is very important in e-business and this can be done only by developing an application which promises authentication, interoperability, legal framework, open standards and security which can be only achieved by designing application with right platform.
If a company is investing in automating the procurement process then employees can simply login and search for a product in the web, can check whether the product is available or not, and can place orders and send the application for approval. This can be done in very little time, higher authorities can check the order and can approve it online, and supplier gets the order. An invoice is generated automatically and that will be sent to the financial department where the order is analyzed and reported accordingly. Therefore by implementing right e-procurement solution organization can keep track of all the purchase orders, usage of the product and supplier performance in a single place if it has more branches, by this organization can increase its productivity and can perform effectively.
Aim and Objectives:
The aim of this project is to to design a web based application that allows employees, managers and group administrators to streamline the process of procuring items (books/hardware/media etc).
Objectives:
• To study the capability of e-business and supplier readiness.
• To study the significant role of e-procurement in today’s market
• Current state of e-procurement technologies
• Benefits and advantages of e-procurement
• To develop an application for streamlining the process of procuring items.
Deliverables:
The following knowledge and output will be gained after the completion of research.
• Organizations e-business capability and suppliers e-business ability for the successful adaption of e-procurement
• Brief overview of how authentication, interoperability, legal framework, open standards and security can change the adaption of e-procurement
• How the success of e-procurement enabled the growth of market
• Finally an application will be developed that can be used by three types of users, employees, administrators , and managers
Employee view:
o Browse through the list of supported items and/or vendors that has been approved by the procurement desk.
o Browse through history details on teams who have procured specific items, read the reviews on it, view any problems faced by the teams on these items.
o Request for information (RFI) on unlisted item from the group admin who in turn can coordinate with the procurement desk and update this RFI.
o Create a new procurement request which needs to be approved by the manger (+any level of approvals based on the amount) and finally acted on by the admin.
o View the current status of an existing request including updates from the vendors on possible arrival dates for the item.
Manager view:
o Browse through history details on teams who have procured specific items, read the reviews on it, view any problems faced by the teams on these items.
o Request for information (RFI) on unlisted item from the group admin who in turn can coordinate with the procurement desk and update this RFI.
o Approve a new procurement request and/or forward it for additional approvals.
o View the history of past approvals.
Admin view:
o View the list of new requests.
o Update requests with additional information.
o Service and close the requests.
o Add/update/remove items in the list of supported items/vendors.
o Additional functions to support the employee or manager view.
In additional as the request goes through the work flow (new, pending approval, updates, closure, etc), emails will be sent to the relevant individuals intimating them about the change in the request.
Business rules:
o When user creates a new request, his reporting manager should be notified for request approval via email, providing a link to the site for Approval
o Manager should be allowed to approve only the requests made by his direct reports
o When manager approves an item request, a notification (email?) is sent to Admin with the request details.
o Admin should not be allowed to delete items, which have some pending requests associated with.
Authentication
o Windows Authentication based on Active Directory. Application should identify Admin, Manager and User roles.
Resources
• Access to university e-resources and e-journals like IEEExplore,ebrary, ACM digital library, Net library.
• Google Scholars search engine.
• Required books on ecommerce and business
• ASP.NET and SQL coding examples from internet
Introduction:
E-procurement or electronic procurement refers to online electronic purchasing of goods, establish agreements for purchasing products, automating accounting system, electronic ordering and auctions. Due to the success of B2B e-commerce the growth of e-procurement has raised significantly, e-procurement emerged as the effective and efficient inventive alternative to achieve better; by automating the procurement process many enterprises have seen the advantages. E-procurement became solution to many sectors as purchasing is done from manufactures to online retailers, therefore firms who have been adopted e-procurement have already seen savings in millions of dollars which include reduction in administrative costs, cut of labour, time ,lowering paper works and price paid for goods. Therefore many firms came forward to invest in newer technologies and on the other side success of B2B applications in recent times brought great confidence in the investors. E-procurement systems became success in both buying and selling side even though failure of many dotcoms and economic slowdown. [1]
A report by Gartner Group shows that companies who have not automated the procurement process have seen more losses and in one report it showed that up to 50 percent of checks which have been issued by the company are not paid to the purchasing department’s preferred suppliers and this is only due to the personal who is managing accounts have very little knowledge about purchasing and negotiation and this leads to crazy spending. Processing costs is the key factor in purchasing and a study report shows it costs nearly 115$ to 150$ for placing an order and this can be reduced up to 85% by using e-procurement. For purchasing MRO related material it takes nearly a month to complete the processing cycle i.e from ordering to delivery but if we use e-procurement instead, the processing cycle can be completed within three days by saving precious time. A survey conducted by a magazine shown that managers will spend more time in doing paper work which is costing the organization more labour and money therefore it became very important for the firms and organizations to automate the procurement process. [3]
E-procurement technologies has been growing significantly day by day and it has been reaching to new limits by improving the standards of e-catalogue, implementing attribute based search engines, including parametric and preference searches which made easy and convenient to search for products faster. Current economic conditions are keeping firms in big trouble therefore professionals who are working in these areas should find more easy and effective ways to keep the firms and governments financially sound. Tender and auction methods are used by the firms and governments to carry procurement process but these are costing billions of dollars to governments and firms which in turn opening way for corruption , fraud and delays and even compromise in the quality . Due to this firms and government suffer losses in time, money and labour. To eliminate this losses and corruption CVC/MDB had designed a five point formula: [4] [5]
o All tenders should be published on the website clearly
o All documents should be published on the website along with the tender information
o Documents should be freely available to the suppliers
o Publish Corrigendum on Website
o Supplier should be able to pay the money on the bid time [4]
Change in technologies and improved security and privacy standards changed the opinion in the public sector. Now a day’s e-procurement is seen as the method to reduce corruption and increase in the transparency. [2]
Organizations e-business capability is most important asset which plays a crucial role for the adoption of e-business by any firm. This paper is going to show the importance of e-business capabilities like authentication, interoperability, legal framework, open standards, security, supplier readiness (availability of resources in organization), significant role of e-procurement in today’s market are the main objectives and this paper is also going to show the current and best technologies involved in designing of e-procurement.
To be continued..........
Literature review:
• Previous procurement process and current practices
• Architecture of e-procurement
• Current state of e-procurement technologies
• Advantages and disadvantages of e-procurement
Literature review:
• Previous procurement process and current practices
• Architecture of e-procurement
• Current state of e-procurement technologies
• Advantages and disadvantages of e-procurement
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