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  Purpose 

 To identify responses to problems of maverick purchasing.  

  Activity 

 To avoid maverick purchasing, businesses introducing e‑procurement need to put 

safeguards into the e‑procurement system. Think about the type of rules that could be 

written into an e‑procurement system. 

  Answers to activities can be found at    www.pearsoned.co.uk/chaffey   

  Implementing  e‑procurement 

 Implementing e‑procurement has the challenges of change management associated with any 

information system (which are discussed in  Chapter   10   ). If the implementation can mirror 

existing practices, then it will be most straightforward, but many of the benefits will not be 

gained and the use of new technology often forces new processes to be considered. CIPS 

(2008) forcefully makes the case that some re‑engineering will be required: 

  Organisations should not simply automate existing procurement processes and systems 

but should consider improving ways of working and re‑engineering business processes 

  Implementing  e‑procurement 

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Chapter 7  E‑procurement

prior to the implementation of eSourcing/eProcurement. Purchasing and supply manage‑

ment professionals should challenge established procurement practices to test whether 

these have evolved around a  paper‑  based system and as such can be replaced. CIPS 

strongly recommends that, wherever possible, processes should be re‑engineered prior to 

implementing ePurchasing.

To introduce e‑procurement the IS manager and procurement team must work together to 

find a solution that links together the different people and tasks of procurement shown in 

Figure 7.1. Figure 7.3 shows how different types of information system cover different parts 

of the procurement cycle. The different type of systems are as follows.

● 

Stock control system – this relates mainly to  production‑  related procurement; the sys‑

tem highlights that reordering is required when the number in stock falls below reorder 

thresholds.

● 

CD or  web-  based  catalogue – paper catalogues have been replaced by electronic forms that 

make it quicker to find suppliers.

● 

 Email-    or   database-  based  workflow  systems integrate the entry of the order by the origina‑

tor, approval by manager and placement by buyer. The order is routed from one person 

to the next and will wait in their inbox for actioning. Such systems may be extended to 

accounting systems.

● 

 Order-  entry  on  website – the buyer often has the opportunity to order directly on the sup‑

plier’s website, but this will involve rekeying and there is no integration with systems for 

requisitioning or accounting.

● 

Accounting systems – networked accounting systems enable staff in the buying department 

to enter an order which can then be used by accounting staff to make payment when the 

invoice arrives. The  IFO‑  Basware (2012) global e‑invoicing report that automation is still 

Figure 7.3

Use of different information systems for different aspects of the  

fulfilment cycle

Matching

and payment

Goods received

and delivered

Buyer, originator