e-Procurement: From Strategy to Implementation

223 Pages·2001·2.69 MB·English

by  Dale Neef

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e-Procurement
From Strategy to Implementation
FinancialTimes_series.fm Page 1 Thursday, April 5, 2001 9:06 AM
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fm_title.fm Page iii Friday, April 6, 2001 11:07 AM
e-Procurement
From Strategy to Implementation
Dale Neef
Prentice Hall PTR
One Lake Street
Upper Saddle River,NJ 07458
www.phptr.com
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Library of Congress Cataloging-in-Publication Data
CIP data available
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Development Editor: RUSS HALL
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Manufacturing Buyer: MAURA ZALDIVAR
Editorial Assistant: ALLYSON KLOSS
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Cover Design: NINA SCUDERI
Interior Design: WEE DESIGN GROUP
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TABLE OF CONTENTS
Preface xi
Chapter 1 The New World of Business-to-Business
E-Commerce 2
Is It for Real? 5
The Unique Nature of B2B E-Procurement 7
Dragging Their Feet 11
Is B2B 4 U? 15
Chapter 2 The Fundamentals of Procurement 24
Indirect Procurement: ORM Versus MRO 26
A Day in the Life of a Typical Procurement Scenario:
Today 29
Select Goods 29
The Requisition Process 30
Waiting for Approval 30
Creating the Purchase Order 30
Neither Direct nor Indirect—Just E-Procurement 31
E-Procurement Vision of the Future: Tomorrow 32
Chapter 3 Understanding the Strategic Nature of
E-Procurement 36
Back-End Systems and the Modern Organization 39
The Strategic Nature of E-Procurement 41
Strategic Focus of the E-Procurement Initiative 43
Chapter 4 Making the Business Case for E-Procurement 46
Process Efficiencies 47
Process Automation Savings 48
Compliance 50
Leverage 54
Strategic Sourcing 55
The Changing Role of Procurement Specialists 58
Chapter 5 The E-Procurement Software Landscape 60
The Story So Far 61
E-Procurement Software Specialists 65
ERP Suppliers and E-Procurement 67
Translation and Connectivity 69
Payment Systems 71
Finding Your Way Through the Minefield 72
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Chapter 6 The Architecture of Web-Based Procurement 74
Sell-Side One-to-Many: The Storefront Model or
Shopping Mall 75
Buy-Side One-to-Many Model 77
Buy-Side Desktop Requisitioning 79
Buy-Side Central Procurement 79
Independent Portal and Online Trading Communities 80
Vertical E-Markets and Marketplace Creators 82
Horizontal E-Markets 85
Auctions 88
Application Service Providers 93
The Future of E-Markets 95
Chapter 7 Standards 100
From EDI to XML 101
Chapter 8 Government and E-Procurement 108
Advantages Will Not Be in Savings Alone 109
Government-to-Business E-Commerce 111
The Military 115
Chapter 9 The Future of E-Procurement 118
Standards 119
Enterprise Versus E-Market Models 119
Direct Versus Indirect 120
Consolidation of E-Market Verticals 120
Single-Solution Suppliers 122
Vendor Rationalization 125
The Changing Role of Procurement Specialists 125
Government Driven 126
Chapter 10 Assessing the Pros and Cons of E-Procurement 128
The Pros 129
For Buyers 129
For Sellers 130
The Cons 131
System-to-System Integration Issues 131
Initial Investment Costs 133
Security, Trust, and Supplier-Buyer Relationships 134
Fundamental Changes to Procurement Business Processes and
Company Culture 137
Why E-Procurement Initiatives Fail 138
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Chapter 11 Guiding Principles for Developing an
E-Procurement Initiative 140
Ground Rules for an E-Procurement Project 142
Executive Sponsorship and Participation 143
Integrate E-Procurement Project
with E-Business Strategy 144
A Legitimate Business Case 145
Guiding Principles 147
Strong Change Management Program 147
Redesign Business Processes 148
Other Key Issues to Consider Before Starting 150
Integration Issues 150
Involving Suppliers and Vendors 151
Bringing in Consultants 152
New Responsibilities for Consultancies 154
Chapter 12 Structuring the Project: Phases of an
Enterprise-wide E-Procurement Initiative 160
Strategy Phase 161
Program and Project Planning 164
Strategic Direction, Guiding Principles, and Project Goals 164
The Case for Action 165
Target Performance Measures 165
The Supplier Side 166
Resources and Critical Areas of Concern 167
Project Readiness Assessment and a Plan of Work 168
Analysis and Design Phases 169
Collecting Information to Confirm the Business Case 169
Confirming Supplier Support and Compatibility Levels 169
Redesigning Business Processes 170
Completing an Implications Analysis on Changes to
Activities and Employee Jobs 170
System Selection Phase 172
Cost 172
Functionality 173
Integration and Interoperability 173
Implementation Phase 174
Customer Support 175
Future Viability of the Group 175
Chapter 13 The Executive E-Procurement Strategy Workshop 176
Step One: Defining and Agreeing on Fundamentals 178
Step Two: Education on E-Procurement 180
Step Three: Reviewing the Business Vision 180
Step Four: Understand the Procurement Business Case 181
E-PROCUREMENT Table of Contents ix