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Introduction
Partie 1: E logistic in the service of procurement
E- logistic and E procurement
The process of e-procurement
Benefits
Challenges
Strategies for Successful Implementation
Current trends
Introduction:
E-logistics and Efficient Consumer Response (ECR) are integral components in the
service of e-procurement, enhancing the efficiency and effectiveness of procurement
processes. E-logistics refers to the use of electronic technologies and systems to optimize the
management of the logistics and supply chain aspects of procurement. ECR, on the other
hand, focuses on improving the coordination and collaboration between suppliers and retailers
to achieve cost reductions and enhance customer satisfaction. Together, these two elements
contribute to the seamless execution of e-procurement strategies, ensuring timely delivery,
inventory management, and effective supply chain integration.
1. Identification of Needs:
- The process begins by identifying the organization's procurement needs. This involves
determining the goods or services required, quantity, quality specifications, and delivery
timelines.
e-Informing
All steps of the traditional procurement cycle are covered by e-informing. It also intersects
with all e-procurement digital procedures. E-informing entails a two-way exchange of
confidential data. The communication takes place between internal and external partners
inside the company, helping the organization to improve its e-procurement procedures.
e-Sourcing
The first phase of e-procurement is e-sourcing, which includes requirement definition
and sourcing. It entails pre-qualifying potential suppliers based on the needs of the
procurement firm to narrow down vendors for the assessment stage.
e-Tendering
Solicitation and assessment are both parts of the e-tendering process. It entails
seeking information, proposals, and quotes from the suppliers that have been shortlisted. This
aids in the procurement organization’s analysis and evaluation of vendors. The procurement
organization employs technologies at this stage to guarantee transparency during the selection
process.
e-Auctioning
E-auctioning, also known as e-reverse auctioning, is linked to contracting and evaluation. The
parties engaged at this stage negotiate price and contract conditions. The procurement
organization purchases the products or services from the vendor after striking an agreement.
Many buyers compete in e-auctioning to contract with one provider by proposing greater
prices. In e-reverse auctioning, on the other hand, numerous providers compete for a contract
with a single customer by underbidding.
e-Ordering
E-ordering occurs at the same time as contracting and contract management. It entails
generating and authorizing requisitions, placing orders, and receiving the things that have
been placed on hold. Completed on-call contracts are indexed in a digital catalog at this level.
Employees can visit this catalog at any moment and place an order. Managing suppliers and
catalogs, integrating purchase orders, e-invoicing, and e-payment are all examples of e-
procurement operations.
3-Benefits of eProcurement?
Procurement management within a purchasing company can benefit significantly from e-
procurement, which includes :
1. Savings
Built-in cost-control and performance-optimization technologies help reduce expense and
paperwork while increasing efficiency. Fully automated systems can speed up the process of
producing and fulfilling orders. A wider range of products and services is also possible.
4. Transparency
All data is consolidated and may be shared with management, stakeholders, shareholders, or
the general public as needed.
4. Challenges in Implementing E-Logistics:
- Technological infrastructure:
- "Robust IT infrastructure and systems integration are necessary for successful e-logistics
implementation."
- "Investment in hardware, software, and network capabilities may be required."
- Data security and privacy:
- "Protecting data integrity and ensuring privacy are critical considerations in e-logistics
implementation."
- "Compliance with data protection regulations, such as GDPR, is essential."
- Change management:
- "Resistance to change may arise among employees accustomed to traditional procurement
processes."
- "Change management strategies, training programs, and clear communication are vital for
successful adoption."
-Supplier Resistance:
Some suppliers may be resistant to adopting e-procurement systems due to various reasons
such as a lack of technical capabilities, concerns about security and data privacy, or reluctance
to change their existing processes. Suppliers may prefer traditional methods of procurement or
may have limited resources to invest in e-procurement technology
1. Cloud-Based Solutions:
- Cloud computing has become increasingly popular in e-procurement. Cloud-based solutions
offer scalability, flexibility, and accessibility, allowing organizations to access procurement
systems and data from anywhere, at any time. They also eliminate the need for extensive IT
infrastructure and provide enhanced security and data protection.
2. Mobile Procurement:
- With the proliferation of mobile devices, there is a growing trend towards mobile
procurement applications. These applications enable users to initiate and approve purchase
requisitions, access supplier information, track orders, and receive notifications on their
smartphones or tablets. Mobile procurement enhances efficiency and allows for real-time
decision-making, even while on the go.
2. Case study:
JUMIA
Conclusion:
In conclusion, E-logistics and Efficient Consumer Response (ECR) play a crucial role in the
service of e-procurement. E-logistics leverages electronic technologies to optimize logistics
and supply chain management, enabling timely delivery and efficient inventory management.
ECR focuses on enhancing collaboration between suppliers and retailers, leading to cost
reductions and improved customer satisfaction. By integrating these elements into e-
procurement strategies, organizations can achieve streamlined procurement processes,
increased operational efficiency, and enhanced supply chain integration. Embracing e-
logistics and ECR empowers businesses to leverage digital tools and systems to optimize
procurement practices and stay competitive in today's rapidly evolving market