E-İŞLETME - Deneme Sınavı - 5

In the literature related to procurement management, there are different definitions. Procurement, with the most general state of it, can be defined as the process to obtain quality in the right time and the right price from the right resource.

In this scope, in industrial procurements and e-procurement, the process is executed as follows:

• Needs Recognition

• Needs Identification

• Source Selection

• Price Comparison

• Placing an Order

• Order Follow-up

• Keeping Records

• Professional Supplier Relationship

In this scope, in industrial procurements and e-procurement, the process is executed as follows (Zenz, 1994: 10-13; Dobler and Burt, 1996: 62).

• Needs Recognition

• Needs Identification

• Source Selection

• Price Comparison

• Placing an Order

• Order Follow-up

• Keeping Records

• Professional Supplier Relationship

Cost limiting provides large benefits about quality, delivery, flexibility, and innovation.

Procurement is one of the most basic functions of every kind of processes and organization. Procurement, as a result of its activities, is a basic and integrative function of business management. To become successful, it is necessary for any business to perform at full capacity in its main segments, such as production finance, marketing, distribution, human resources. These functions can perform well if the procurement department perfectly performs its activities. Procurement provides benefits to business and has a great importance

There are three e-procurement strategies. The first strategy, in which a business signs a long term contract with a single supplier, is strategic partnership. The second strategy is online call up, in which the internet is used to select suppliers to be placed an order. In this case, it is assumed that unit price randomly occurs; however, distribution is previously known, and it is assumed that the number of suppliers made contact for price offer has a function. The third strategy is a united strategy, in which a supplier is used as a long term partner, however, a second resource can be selected through the internet.

First Generation Commodity Exchanges (communities and offer demand facilitators): First Generation Commodity Exchanges are information and content centers. E-procurement applications stand out the developed B2B portals called commodity exchange. This exchange contains functions such as online trade magazines, industrial news and trends, product information, classified contents of sectoral participants, and technical examinations.

Internet market exchanges: They are websites bringing together more than one purchasers and sellers and enabling them to sell with a dynamic price identified according to exchange market rules

Strategic Advantages are in the way of

• Realizing procurement applications that will provide more discount and better service,

• Accelerating information flow between purchasers and suppliers,

• With reducing administrative hours, directing staff to the other tasks, and

• Accelerating participation in new markets, where competition is high, and reaction to competitors.

Opportunity advantages are

• Developing business image and institutional trade relationships,

• Developing purchaser-supplier relationships,

• Possibility to access to more accurate information.

Operational Advantages

• Facilitating financial audition

• Eliminating document costs

• Providing that personnel and supervisors follow movements of orders through the system, increasing supervision and security.

• Shortening delivery time by eliminating the need to wait for paper documents by mail

• Removing impediments of time slice

• Reducing inventory levels.

• Reducing workload, cycle time delays, stocks and errors, increasing effectiveness in each stage

• Allowing for flexible access in every time and every place

• Providing delivery in time

All other options except for the one in option E are disadvantages of e-procurement procedures.

Supply is much more comprehensive than procurement
that expresses purchasing goods and service in
exchange of money or any payment.

Family size

It is in the form of more than one
purchaser and seller in a virtual market.

Definition of procurement needs according
to the demand of the final consumers of a business.

Order follow-up stage

It identifies and selects competitive
suppliers.

It motivates employees for success.

Aggressive strategy

This exchange contains functions such as online trade magazines,
industrial news and trends, product information,
classified contents of sectoral participants, and
technical examinations.

Data taking place in e-procurement systems include prices of materials, and these prices and even
discounts should be regularly updated.