E-Procurement Assignment Example | Topics and Well Written Essays - 750 words

E-Procurement - Assignment Example Deptt. prepares a â€Å"Components List† 2) The components list is then forwarded to the Planning Deptt., which plans Product Codes (for new components, if any) and schedule reservation; 3) Thereafter the list is handed-over to the Purchase Deptt. for raising a Purchase Order (PO). In case of new requirements, three quotations are first obtained from different suppliers. Finally the PO is created, signed by two persons – i.e DGM Commercial and GM Technical and then delivered to the supplier. 4) Once goods are received, Inspection checks the quality of goods and if found ok, it hands-over to the Store, which makes a Goods Receipt (GR) upon receiving the goods 5) Planning then prepares a â€Å"Pick List† of the required components and gives it to Production for issuance of components from the Store. 6) Upon receipt of supplier’s invoice, items & amount charged are reconciled and then payments are made to the supplier. 7) The performance of Purchase Deptt. is checked through certain KPIs set by the Company while suppliers’ performance is analyzed by means of assigning different grading. Ans# 3: Three key advantages of using e-Procurement over manual processes: 1) Using e-Technology and an integrated ERP application, automates & speeds up business processes related to the production of goods and services. 2) It also serves as a tool in sourcing new suppliers and tendering bids whilst cutting down material cost 3) It ensures modernization which keeps your workplace up to date with the latest procurement/selling techniques. Ans# 4: Three critical process flows of e-Procurement system: 1) Data integrity: In case of error in a PO shall cause incorrect delivery/shipment. Therefore an extra care needs to be taken when preparing & submitting a PO to the supplier. 2) Availability: Ensuring availability of the required material is a critical part of e-Procurement, as the firm is committed to timely delivery of the finished goods to its cus tomers. 3) Inventory Management: Being a fully integrated system, a small error has a large impact. For Instance, it could result in over-stocking or under-stocking of inventory or distracting inventories’ safety level, etc. Ans# 5: How EDI works? The diagram below shows a two-way nature of EDI. For example, if a customer/business partner wishes to place an order, it shall generate an electronic purchase order which shall automatically get transmitted and arrive into the company’s order management system indicating arrival of new order(s). Once the order is processed and goods delivered to the customer, company’s inventories position will be automatically updated. In a nutshell, from order processing till payment, relevant information through out the system shall get automatically updated at both sides (Customer & Vendor). Ans# 6: Business-to-employee requisitioning system benefits an employee in several ways. Many terms used in this context. Human Resource Mana gement System (HRMS) or Shared Services Human Resource (SSHR) is the most commonly used term in business world. The system provides an online submission and approval of a requisition including viewing attendance, applying for leave, requesting a loan, seeking training, submitting Work Objectives or Appraisal, and much more. For example, if applying for a leave, an employee needs to fill-up an online leave form and click on â€Å"Submit† button. The application directly goes to the concerned supervisor under intimation to