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    B2B and E-Procurement

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    Nikhil Joy
    B2B e-procurement aims to address inefficiencies in supply chains by supporting electronic transactions between businesses. It allows companies to streamline procurement processes, reduce costs through online collaboration, and gain procurement expertise without requiring extensive internal resources. Key factors for the successful adoption of B2B e-procurement include fragmented or complex supply chains, product configurations, and pressure to lower costs.

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    B2B and E-Procurement

    Uploaded by

    Nikhil Joy
    130 views22 pages
    B2B e-procurement aims to address inefficiencies in supply chains by supporting electronic transactions between businesses. It allows companies to streamline procurement processes, reduce costs through online collaboration, and gain procurement expertise without requiring extensive internal resources. Key factors for the successful adoption of B2B e-procurement include fragmented or complex supply chains, product configurations, and pressure to lower costs.

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    B2B e-procurement aims to address inefficiencies in supply chains by supporting electronic transactions between businesses. It allows companies to streamline procurement processes, reduce costs through online collaboration, and gain procurement expertise without requiring extensive internal resources. Key factors for the successful adoption of B2B e-procurement include fragmented or complex supply chains, product configurations, and pressure to lower costs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    130 views22 pages

    B2B and E-Procurement

    Uploaded by

    Nikhil Joy
    B2B e-procurement aims to address inefficiencies in supply chains by supporting electronic transactions between businesses. It allows companies to streamline procurement processes, reduce costs through online collaboration, and gain procurement expertise without requiring extensive internal resources. Key factors for the successful adoption of B2B e-procurement include fragmented or complex supply chains, product configurations, and pressure to lower costs.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 22

    B2B and E-Procurement

    E-BUSINESS

    SAJI GOPINATH

    What is the role of B2B E-Biz


    Support the Supply Chain
    But what is the primary problem in Supply Chains?
    How E-Biz addresses it

    E-BUSINESS

    SAJI GOPINATH

    Illustration
    Rs 80
    Rs 35 Rs 125 Salvage value : Rs 20 Demand Data
    0.3
    0.25 0.2 0.15 0.1 0.05 0 8000 10000 12000 14000 16000 18000 prob

    What should be the ideal sales?


    What will be the actual sales
    E-BUSINESS

    SAJI GOPINATH

    What should be the ideal quantity


    Chain gain as per production qty

    6000 540000 8000 720000 10000 876900 120001008600 140001083600 160001112400 180001103400

    1200000 1000000 800000 600000 400000

    Series2

    200000
    0 6000 8000 10000 12000 14000 16000 18000

    E-BUSINESS

    SAJI GOPINATH

    Look from retailers angle


    But what will be the amount the retailer will stock?

    500000 450000

    6000 8000 10000 12000 14000 16000 18000

    270000 360000 466500 468600 453600 392400 293400

    400000 350000 300000 250000 200000 150000 100000 Series1

    50000
    0 6000 8000 10000 12000 14000 16000 18000

    E-BUSINESS

    SAJI GOPINATH

    Loss of Chain Gain

    1200000

    1000000

    800000

    600000

    Series1 Series2

    400000

    200000

    0
    6000 8000 10000 12000 14000 16000 18000

    E-BUSINESS

    SAJI GOPINATH

    How do E-Biz Solve it?

    E-BUSINESS

    SAJI GOPINATH

    Why E-Procurement?
    What is the objective of procurement process?
    Procurement Process is complex

    E-BUSINESS

    SAJI GOPINATH

    PROCUREMENT
    The process of obtaining goods and services for a firm consistent with user requirements
    Identify needs Market Analysis

    Define user requirements

    Identify all possible suppliers; screen and evaluate

    Make or Buy?

    Select a supplier

    Identify type of purchase

    Make a post purchase audit

    E-BUSINESS

    SAJI GOPINATH

    PROCUREMENT APPROACHES
    HIGHEST TOTAL VALUE TO CUSTOMER

    LOWEST TOTAL COST TO FINAL FIRM LOWEST TOTAL COST TO FIRM LOWEST LANDED COST

    LOWEST UNIT PRICE

    E-BUSINESS

    SAJI GOPINATH

    ELEMENTS OF COST
    LC

    QUALITY COSTS

    SUPPLY RELATIONAL COSTS

    DIRECT TRANSACTION COSTS

    TRADITIONAL BASIC INPUT COSTS

    E-BUSINESS

    SAJI GOPINATH

    Why E-Procurement?
    What is the objective of procurement process?
    Procurement Process is complex What is the level of expertise required
    Negotiation skills, operational skills, HR Skills

    Procurement Process decisions: Tactical or Strategic? Limitations of conventional procurement

    E-BUSINESS

    SAJI GOPINATH

    E-Procurement o Is the sourcing of maintenance, repair and operations (MRO) and non-MRO requirements from suppliers securely via electronic media.. o Internet-based technologies used to create a Web-based, self-service environment that pushes product selection and order initiation to employee desktops while maintaining corporate trading agreements, workflow, and rules. Aberdeen Group

    E-BUSINESS

    SAJI GOPINATH

    B2B Commerce & e-procurement?

    Supplier

    Customers

    Intermediary
    E-BUSINESS

    Support

    SAJI GOPINATH

    B2B E-Commerce Space*


    Supply Chain Management Activities Purchasing Demand Management Activities Selling Collecting Customer Service Product/ Service Support Support Activities Financing Cash Management Planning Training Human Resources Management Skills Management

    Transaction Oriented Activities

    Paying Sourcing Forecasting

    Collaboration Oriented Activities

    Inventory Management Scheduling Production Planning

    Product Configuration Product Design Sales Forecasting

    Transportation Planning and Control

    Sales Analysis

    * www.ecommerce.vanderbilt.edu/research/papers/b2b.html

    E-BUSINESS

    SAJI GOPINATH

    The Evolution of B2B Commerce

    Automated Order Entry

    EDI

    Store Fronts

    Market Places

    Private Networks

    Horizontal markets Vertical Markets


    E-BUSINESS

    SAJI GOPINATH

    Drivers for B2B Growth


    Web Technologies Industry standards Simplification of technical architecture Stickiness of solutions Cost reduction and revenue opportunities

    E-BUSINESS

    SAJI GOPINATH

    Why B2B E-Commerce


    Administration Cost Search Cost Inventory Cost Transaction Cost Production flexibility On-line Collaboration
    High quality Low production run time

    E-BUSINESS

    SAJI GOPINATH

    Who will adopt?


    SC Cost & Number of Intermediaries SC is highly diffuse
    Fragmented Imperfect mkt information Long transaction cycle Complex logistics

    Techno-innovators Process cost accounts for more than 20% Product exhibit complex configuration High pressure on cost reduction

    E-BUSINESS

    SAJI GOPINATH

    How to select the business model


    Systematic Sourcing

    How Businesses Buy

    MRO Hubs

    Catalog Hubs

    Yield Managers

    Exchanges

    Spot Sourcing Operating Inputs Manufacturing Inputs What Business Buy Kaplan & Sawhney Framework

    E-BUSINESS

    SAJI GOPINATH

    What are the revenue models


    Transaction Fee Auction Commission Advertising Content subscription Software licencing

    E-BUSINESS

    SAJI GOPINATH

    Key Success Factors


    Business Model Market Size Industry Expertise Branding and distribution Management Execution (team)

    HOW TO SELECT?

    E-BUSINESS

    SAJI GOPINATH

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