Directorate of distance education

Sourcing E-Procurement Services
Sourcing e-procurement services requires much prior forethought 
and planning and a clearly defined strategy. A basic explanation of 
e-
procurement
is that it is the business-to-business purchase and sale of 
supplies and services over the Internet. External service providers who 
are experienced in operating an e-procurement business can provide 
economies of scale resulting in cost savings for the client.
The definition
: However, e-Procurement is more than just a 
system for making purchases online. A true e-procurement system can 
connect companies and their business processes directly with suppliers, 
managing all interactions between them. This traditionally includes the 
management of bids, supplier correspondence, pricing history and an 
electronic communication system. 
The services
: Outsource companies provide services covering 
the design of the strategy through to implementation, hosting and 
maintenance of the on-going operations. The selection of the right service 
for a company’s requirements is the key to success. Some e-procurement 
service providers only provide e-sourcing services, others may only 
provide the hosting services and some specialize by industry.
E-Sourcing

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Notes
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E-sourcing
: The whole process from identifying suitable vendors, 
to obtaining competitive terms and managing the on-going supply 
relationship constitutes e-sourcing. This process, illustrated below, is the 
central hub of e-procurement.
Reverse auctions, where suppliers offer their goods for the best 
price, is one of the services most offered by e-procurement specialists. The 
management of the whole sourcing process using a Request for Information 
or Proposal (e-RFx) through to the finalization of the contract is a popular 
service that shows the process to be fully transparent as it is managed by 
a third party.
E-procurement services also include doing an analysis of the 
client’s spend profile, hosting and maintaining a database of suppliers 
whilst recording their performance history for future negotiations. The 
more developed and established e-procurement services include supplier 
and market intelligence, knowledge management and the full range of 
staff training modules.
There is a lot of choice in the level, extent and quality of the 
services offered in this field. Research is needed and references should be 
taken from existing clients to ensure that the right supplier is engaged. 
The selection of suitable e-procurement services depends on the maturity 
of the client and his intended strategy.
E-Fulfilment
It is not the purpose of this section to overview fulfillment in its 
entirety. Our aim is purely to illustrate the impact of e-commerce on 
fulfillment; i.e. uncover the current state of play for e-fulfillment.