Technological Institute of the Philippines

PURCHASING
MANAGEMENT
Today's Agenda

1 Team Check In 3 E-Procurement

2 Purchasing Process/Procedure
4 Question and Answer
Purchasing Process
Assignment Discussion - Group 1
Purchasing Process
Assignment Discussion - Group 2
Purchasing Process
Assignment Discussion - Group 3
Purchasing Process
Assignment Discussion - Group 4
Purchasing Process
1 Request to purchase / requisition

2 Supplier Selection

3 Purchase Order

4 Fulfillment

5 Goods Receipt

6 Supplier Invoice/Payment
Electronic Procurement
AKA e-procurement
refers to the use of Internet-based (integrated) information to
carry out individual or all stages of the procurement process
including search.
The process of e-procurement covers every stage of purchasing,
from the initial identification of a requirement, through the
tendering process, to the payment and potentially the contract
management.
Electronic Procurement
E-Procurement Model

1. Web-based ERP (Enterprise Resource Planning)

2. e- MRO (Maintenance, Repair and Overhaul)
Creating and Approving Purchasing requisitions,
ERP software can also generate and send
placing purchase orders and receiving goods
purchase orders for maintenance, repair and
and services by using a software system based
operating supplies
on internet technology.
Some features:
Generate Purchase Orders using details
from Purchase Requisition
Forward Purchase Order to Suppliers 3. e- Sourcing
Issue reschedule notices to suppliers. Used to identify new suppliers for a specific
Reschedule notices are supplementary category of purchasing
orders that can either cancel, delay, speed Connect to a wider variety of suppliers
up and alter the size of pending orders.
Electronic Procurement
E-Procurement Model

4. e-Informing 5. e- Tendering
Staging of information about the supplier’s The process of screening suppliers and
quality financial status or delivery capabilities. sending suppliers requests for information
(RFI) and requests for price (RFP)
Electronic Procurement
Benefits of e-Procurement

Real time business intelligence to vendor of customer’s needs

Companies can track purchases being made in all
departments and ensure compliance to standards.
Reduction of inventory levels
Procurement managers do not need to be as highly trained or
paid because such systems are standardized and easy to
learn
Electronic Procurement
Benefits of e-Procurement

Transactional Benefits
Reduced invoice to payment time
Compliance Benefits
Adherence to policies and procedures. Sticking to the list of suppliers
rather than going outside to arbitrary and questionable sources. These
sources on the list have already been verified by the company
Management Information Benefits
Customer satisfaction
Supplier satisfaction
Price Benefits
electronic processing saves costs relating to postage stamps and
stationeries.
Electronic Procurement
Risks e-Procurement

Security of information
Risk that information could get into the wrong hands
Impersonal interaction methods
User Confidence
Question?
 Thank you
for your g
Have a
r e a t
ahead.
d a y

participation! -Prof. Jaemee

 “The capacity to learn is a
gift; the ability to learn is a
skill; the willingness to learn is
a choice.”
Brian Herbert, author