B2B Integration : A Practical Guide to Collaborative E-commerce

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vJ Supply Chain Management (SCM) 425 Buyer Buyer Supplier Supplier II 11 II II CXML Internet E-marketplace | E-marketplace 1 T Tl Buyer Buyer Supplier Supplier Figure 14.11. A typical e-procurement cycle Distributors Distributors Distributors Automation not only reduces errors, but also makes information available on a real-time basis, thereby streamlining corporate purchasing policies. Instead of manually browsing through all the brochures to order a specific item, a company can get that information pushed electronically over the Internet. The gains are significant and available across the whole spectrum of an organization's purchasing. Numerous companies such as Ariba (Ariba Buyer), Agile Software Corp (Agile Buyer), Extensity (Extensity Purchase Reqs), i2 Technologies (TradeMatrix Buy Solution), J.D. Edwards (JDEdwards E-procurement), SAP (SAP Enterprise Buyer), PeopleSoft (PeopleSoft E-procurement and Purchasing), Peregrine Systems (Get.Resources), Commerce One (Enterprise Buyer), BroadVision (Enterprise Procurement provide e-procurement solutions.
426 B2B Integration — A Practical Guide to Collaborative E-commerce An e-procurement solution should include features for desktop requisitioning, automated processing, indirect purchasing, direct and indirect sourcing, travel and expense management and electronic forms. It should streamline accounts payable systems; enable easy transition from a paper-based contract management system to an electronic one, procurement of requisition and project-based resources, aggregation with service suppliers and optimization of business processes; provide access to centralized commerce services, such as supplier content, sourcing, liquidation, logistics and payment; deliver an open architecture that allows buying organizations to connect with thousands of trading partners worldwide; and track requisitions allowing end users immediate visibility into the procurement process. Once integrated into a company's infrastructure, the solution should enable connectivity with any number of e-marketplaces and collaborative networks. This feature is only possible if the solution is based on open standards and architecture. GET ON TO THE FAST, EFFICIENT TRACK WITH E-PROCUREMENT A recent American Express and Ernst & Young study revealed that firms using manual purchase orders to buy low-dollar supplies and services incur an average process cost of $90 for each transaction, with some organizations spending as much as $200 on certain transactions. In comparison, the study indicated that companies using e-procurement systems incurred significantly lower processing costs of $20 to $45 per purchase. Better still, firms that employed purchasing cards for payment and accounting tasks with electronic procurement systems to buy supplies reduce their process costs to as low as $4 per purchase, a decrease of 95%. In addition, companies can cut the time required for the purchasing process from two hours to 7.4 minutes by using a combined purchasing card and electronic purchasing solution. Source: Condensed from eProcurement: End-to-end Solutions Deliver Big Cost Savings, Alliente, Inc.
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