E-procurement, also known as e-purchasing, is the process of requisitioning direct or indirect materials using the Internet as the primary medium.【T1】With online catalogs and purchasing systems , companies can save time and money at order time as well as when dealing with accounts payable and receivable.By some estimates, an automated order and approval system reduces the cost of purchase orders by as much as $ 75 to $ 150 each. Engaging in e-procurement requires two major steps; First, your company must become an e-business. Once you've embraced the Internet as a way of doing business(or if you already have), you must deploy the actual e-procurement system. 【T2】In white paper entitled"Reap Rewards with an Efficient E-procurement Strategy", you learn about the big picture issues of setting up an e-procurement system as well as specific steps.In tacking the opportunity of engaging in e-business, companies must take several steps; Build the infrastructure. Doing business on the Internet requires servers that can handle enterprise demands, as well as building blocks for securing load balancing of Internet traffic. This infrastructure can be built in house or outsourced. Modify business processes.【T3】This is perhaps the most difficult phase because it requires changing the way you do things in order to streamline processes and implement technology uniformly.Evaluate your customers' perspective. Once you hour have new processes and technologies in place, you must get feedback from your customers to find out how well you're meeting their needs and expectations. As an e-business, you're ready to reap the benefits of an e-procurement system. The steps to deploying such a system fall into four areas; Understand and automate the workflow. You must fully understand requisition, approval and acquisition process as it now.【T4】As you move to automate it, you shouldn't stray too far from the current practice or employees may resist the change.Create an electronic catalog. Pull together electronic catalogs from your suppliers to create a single catalog. Also, determine what electronic payments your suppliers can accept. Design and test the system. Generic company described in the white paper required 20 person weeks, or 800 hours, to set up its system. The paper delves deeper into spew civic steps. Implement the system.【T5】Once the system works, you need to launch it on an enterprise class architecture. The white paper provides details, including configurations and topologies.
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