Directorate of distance education

New Generation E-procurement: Direct and Indirect effects

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At the e-procurement stage relational databases, internet 
protocol (IP) and transmission control protocol (TCP) networks and 
new innovations such as wireless technologies all make it essential that 
customer facing activities know goods and services are available to meet 
current and future demand. Failure of non-customer facing activities such 
as purchasing, procurement, manufacturing and such like can result in a 
failure to fulfill customer orders.
As depicted in Figure, e-procurement may be considered a sub-
set of e-commerce and eSCM. Resolving inefficiencies and reducing costs 
associated with the purchasing and procurement process have resulted 
in the implementation by businesses, particularly those engaging in 
B2B transactions, of e-procurement processes. The development and 
implementation of e-procurement strategies has in turn gone on to 
become a cornerstone for successful supply chain management. 
E-procurement, an essential component of eSCM
E-procurement permits the Internet and other data networks to 
address a number of challenges confronting overall eSCM strategies. 
Benefits include: 
➢ Preventing unauthorised purchasing and procurement activities
➢ Accelerating transaction times
➢ Reducing costs
➢ More rapid collection of payments
➢ Improving classification and categorisation of all goods and services

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➢ More accurate processing
➢ Integrating procurement processes with tracking and fulfilment 
processes
➢ Tracking in real-time all expenses and variations
➢ Improving supply side arrangements
➢ Reporting variations in quality or performance against agreed 
standards