Electronic procurement
Electronic procurement (also called e-procurement ) is the procurement of goods and services using the internet and other information and communication systems (such as EDI and / or ERP systems ). It is generally used in the area of corporate purchasing in larger companies and organizations .
This term is usually only used when there is secure access in extranets or intranets . VPNs ( virtual private networks ) are often used , which are particularly secured and not accessible to third parties.
Closed system
The two company networks of the supplier and the purchasing company (customer) are linked in a closed system. This usually means a considerable effort to adapt the interfaces to one another. If both companies or organizations use the same software systems, the network is easier. Nowadays, data is often transferred using the platform-neutral description language XML . Nevertheless, there is still a considerable amount of effort to set up. For this reason, such systems are only profitable if a considerable amount of procurement takes place between the supplier and the customer. This is the case, for example, with suppliers to the automotive industry.
The diagram shows the basic arrangement. On the left we have the supplier's network, on the right that of the customer. The data is exchanged between the two networks via the Internet. The usual VPN is shown.
Semi-open systems
Semi-open systems are provided in particular by wholesalers with many customers (retailers). Such systems are integrated into the internal network on the supplier side, while two variants are typically offered on the customer side. Via a standard interface that runs in a browser, customers can intervene directly in the supplier's processes, place orders, track the status of the delivery, view the inventory, etc. Usually an interface (e.g. with Java applications ) is offered in parallel to this , which the customer can use to connect to his own system himself or have this done by a software company .
Open systems
In the case of indirect goods (MRO = Maintenance, Repair and Operations ) in particular , open systems are often used, which are usually asynchronous and connected to one another via the Internet. The data exchange takes place on the basis of product catalogs, which are usually provided by the supplier in a file at longer intervals (weeks to months) and checked by the buyer. The catalog management defines the processes required for this .
The use
The direct connection of two internal networks usually results in considerable process cost savings for both sides. The in-house operations (= processes) take place without a so-called media break . Without e-procurement, orders are usually printed out on paper in the customer system, transmitted to the supplier in some way ( fax , mail ) and then re-entered into the supplier system. The saving of this detour via paper concerns both costs and especially time.
In addition, transmission errors that can otherwise occur when the paper is read in again are avoided - even automatic scanners do not work completely error-free. The availability of the goods can be checked immediately and a decision can be made immediately to select a replacement product, postpone the project or commission another supplier.
Another benefit is on the order page if the ordering process is automated within this system. It is therefore possible for each employee to place their own orders via a web-based interface. The purchasing department defines a web catalog that the employee uses to fill a shopping cart. The order is either forwarded for approval, if it is subject to approval, or sent directly to the supplier. In this way, the internal processing time is reduced, since the operational effort is transferred to the user himself.
Usually, not only the procurement processes as such are electronically processed in such systems. In particular, invoices are usually also issued via the system. The relevant regulations of the tax authorities for the tax recognition of electronic invoices must be taken into account.
The discount systems as well as various statistical evaluations and documentation are usually also automated .
Alternatively, some retailers provide their own shop systems that B2B customers can use to shop themselves - customer-specific discounts that are stored in the connected ERP system are often automatically taken into account.
Public Procurement
E-procurement gained particular importance in public procurement. Changes in the law made electronic tenders possible and in 2004 it was in the test phase. The offers are binding, for example, by means of an electronic signature .
The international EU - Project Pan-European Public Procurement OnLine (PEPPOL) developed since 2008 standards and IT components for cross-border e-procurement.
Security aspects
An important aspect in electronic procurement is data security.
- confidentiality
- The data must remain confidential, i.e. cannot be viewed by third parties. For this reason, data is usually not transmitted over the open Internet , but rather via virtual transmission channels ( VPN ). The transmission is often still encrypted. A suitable system of access rights ensures that only authorized employees can order.
- reliability
- The data must also be legally binding, since they trigger legal transactions. In the area of private companies, these individual contractual provisions can be reserved. Certain manageable risks can also be taken. Therefore, password systems are mostly used here. The situation is different with procurement systems with authorities. Here the documents must be signed by the supplier in a legally binding manner. This is generally done through an electronic signature.
- Four-eyes principle
- Complex systems map operational processes that are based on the passage through various approval authorities. For example, the four-eyes principle (two signatures under one order) can also be implemented electronically.
technical realization
The technical implementation is very diverse. Data transfer with XML is more recent. In existing systems, specially developed data formats are mostly used. Java was often used as the programming basis . However, this requires a clear definition of the technical requirements for the computer on the other side and is therefore only used in practice in closed systems. Semi-open systems can be used if one side has the market power to stipulate the use of certain hardware and software for the contractual partner. The use of XML has made the programming language more flexible. In some cases in which orders are placed via a web-based system, both the customer's and the supplier's ERP system are linked to the shop system. Here plays in companies that the management system R / 3 of SAP AG , the data exchange format using IDOC a significant role. An overview of some providers can be found in the BIP eSolutions Report 2014, published by the Federal Association of Materials Management, Purchasing and Logistics e. V. was developed in cooperation with the amc Group from Bonn.
Commercial realization
Both sides will seldom have the same market power. Therefore one can speak of supplier systems and procurement systems.
Supplier systems (sell-side)
In the case of supplier systems, the supplier specifies the system and specifies the requirements that the customer must meet in order to use the system. Since the supplier is interested in the business, he often also offers a simplified system in which the customer only has a PC with a suitable interface. In particularly simple cases, commercially available PCs with standard browsers are sufficient. The necessary software routines are made available partly free of charge, partly for a fee. Any hardware required is defined so that the customer can procure it. Occasionally special hardware is offered for sale or for rent (often for security reasons).
Procurement systems (buy-side)
In the case of procurement systems, the buyer (procurer) defines the technical requirements for the ordering system. For a long time, only companies were considered as suppliers who met these conditions and were often able to bear the considerable investment costs. In particular, the recommendation for a standardized data exchange format, VDA , developed by the automotive industry , and its explicit use presented smaller suppliers with insurmountable difficulties until a browser-based alternative was created in recent years through the so-called WebEDI .
Marketplace systems (Marketplace-Side)
In marketplace systems, the operators often offer standardized interfaces for electronic data exchange on both the supplier side and the customer side. These benefits are offset by fees such as basic fees, fees for updating the electronic catalogs , often also transaction costs per business document and other costs for additional services, such as the signing of invoices, which both trading partners have to pay to the marketplace operator.
The term e-procurement through the ages
Electronic procurement began with software that supported operational purchasing (e.g. electronic catalogs). Therefore, the same term was initially used for "electronic procurement" and "operational electronic procurement": e-procurement. Later software solutions came to maturity that served as "strategic electronic procurement" known as e-sourcing. This explains why in some literature sources e-sourcing is referred to as a sub-area of e-procurement and in others not.
literature
- Thomas Andreßen: Successful strategic management of e-procurement . In: Bogaschewsky, R./Eässig, M. / Lasch, R. / Stölzle, W (eds.): Supply Management Research . Gabler Verlag, Wiesbaden 2010, ISBN 978-3-8349-2057-7 , p. 291-312 .
- Wieland Appelfeller, Wolfgang Buchholz: Supplier Relationship Management . Gabler Verlag, Wiesbaden 2005, ISBN 3-409-12687-2 . * Wieland Appelfeller, Wolfgang Buchholz: Supplier Relationship Management . Gabler Verlag, Wiesbaden 2005, ISBN 3-409-12687-2 .
- Walter Brenner, Roland Wenger: Requirements for Electronic Sourcing Systems . In: Brenner, W./Wenger R. (Ed.): Electronic procurement . Gabler Verlag, Heidelberg 2007, ISBN 978-3-540-34018-8 , p. 7 .
- Supplier Relationship Management . In: Knut Hildebrand (Ed.): HMD 228 . dpunkt.verlag, Heidelberg 2002, ISBN 3-89864-163-5 ( dpunkt.de ).
- Peter Kleusberg: E-Collaboration and E-Reverse Auctions . VDM Verlag, Saarbrücken 2009, ISBN 3-639-19034-3 , p. 15th f .
- Tobias Kollmann: E-Business: Basics of Electronic Business Processes in the Net Economy . Gabler Verlag, Wiesbaden 2007, ISBN 978-3-8349-0680-9 .
- Alexander Nekolar: e-Procurement euphoria and reality . Springer Verlag, Berlin 2002, ISBN 3-540-43980-3 ( e-procurement.info ).
Individual evidence
- ↑ PJH Baily: Procurement principles and management . Prentice Hall Financial Times, Harlow, England 2008, p. 394.
- ↑ BME e. V. & amc Group: BIP eSolutions Report. BME e. V., Frankfurt / Bonn, Germany 2014. ( Memento from June 11, 2014 in the Internet Archive ).