e-procurement: the future of purchasing.

by:Rocket PCB     2019-10-11
The world\'s top 500 enterprises have begun to implement electronic procurement (e-procurement)
Management of procurement systems, more printed circuit boards (PCB)
Manufacturers will also start using the new technology soon. E-
Procurement provides many benefits for PCB manufacturers and engineers.
For example, industry analysts believe that even if a purchase order is issued to buy a $25 part, the cost of a manual purchase order processing company is as high as $15. E-
Purchasing can greatly reduce these high costs, and more importantly, it can enable engineers and technicians to do what they are best at, design and invent future products, do not fill in purchase orders and order parts by phone. What Are E-
Procurement System? If an e-commerce-
The enabled site is like a grocery store open to anyone with a wide variety of products and then an e-commerce site
The purchasing system is like a private store in your company.
It is only open to your employees and only carries products purchased by your company.
It also offers the best price to negotiate with the preferred supplier. With e-
Purchase, time required to issue manual purchase orders, place orders and track
Vendors can be simplified to a few simple points and clicks.
In some cases, orders can be received on the same day the order is placed.
Many leading OEMs (OEMs)
Using systems for key players in video games
PROCUREMENT industries like Ariba (r)
Business 1 (r)
At first, they only focused on the products of the business. to-
Business Procurement.
Resource planning for several large enterprises (ERP)
The company has also entered the era of e-commerce.
Purchase software business including SAP, i3 and Oracle.
While these systems can save companies a lot of money, they can also bring millions
That\'s why big companies are the first to implement them. Why Use E-
Procurement System?
For most companies in the PCB industry, the procurement process consists of several steps, including selecting products, finding the right supplier, negotiating prices, getting approval, ordering products, receiving products and paying invoices.
The time, labor and resources associated with the process cost the company millions of dollars a year.
Errors or delays in shipment increase procurement costs, slow down the design process, and have design engineers wait for the products they need to complete their work on schedule.
Therefore, procurement professionals are under tremendous pressure to eliminate errors and reduce these costs. E-
The procurement system can improve the procurement process in several aspects.
First, they eliminate paperwork by generating an electronic purchase order and immediately sending it to the right person for approval and execution.
This ability improves the efficiency of procurement personnel. Second, e-
The procurement system forces end users to purchase from the preferred supplier to negotiate a contract with the company. Finally, e-
The procurement system allows management to track expenditures with individual suppliers and product categories, providing visibility into the problem area.
Because billion
Dollar companies may save tens of millions of dollars, and many companies are working hard to implement e-commerce
Procurement system. E-
The procurement system usually works as follows (Figure 1): -
The online directory of the main supplier is loaded into the email
Procurement system.
Typically, these hosting directories contain the most common ordered parts. -
Employees can access the system from the desktop, browse through the catalog and place orders.
If the correct item cannot be found in the hosting directory, the user can use \"punch-
Choose from the supplier\'s website. -
Orders are transmitted electronically via an approval chain similar to an email, and then electronically via XML to the supplier.
XML is the markup language for documents that contain structured information. -
The supplier processes the order immediately without human intervention.
These new automated processes have brought some benefits to many companies, including reduced procurement costs, reduced purchases of \"maverick\", and better reporting of expenditures.
While a website that tracks suppliers may offer something more efficient, such as a faster purchase speed, it does not offer a company benefit --procurement.
What is the supplier\'s role?
While supporting the customer\'s shift to e-commerce, suppliers and distributors face many challengesprocurement.
The purchasing managers have favorite sales reps who provide them with information on how to choose and serve their goods.
The challenge is to copy this information in the online directory.
Vendors must find a way to capture, manage, and deliver content based on email
The specifications of the purchasing supplier and the goods and contract prices specified by the customer.
An additional challenge involves getting raw data inside
Create a clean, searchable product description, product attributes, unit of measure, and product name.
In addition, various coding categories such as United Nations standard product and service codes (UNSPSC)
Or the necessary uniform structure (RUS)
Support must be provided for drilling down and tracking of internal merchandise.
While the information that a sales representative can provide is critical, even the best sales representative cannot provide 24-hour, real-
Timing of order submission and tracking, inventory availability and price updates, elements that are critical to the electronic procurement system.
For example, the buyer wants to know if the 50 boxes of the product are actually shipped.
Supplier needs support real-
Time to access this product data through XML standards.
While XML may be the basic standard, each vendor has its own nuances for the same transaction.
In the end, many purchase decisions are based not on product prices, but on factors that add value.
In this case, suppliers that support e-commerce
The purchase may win the supplier at the lowest price.
Companies are looking for suppliers to invest in technology so they can achieve returns on their investments
Purchase as soon as possible.
Successful implementation of e-commerce
Procurement requires investment from both buyers and sellers. Because many e-
Procurement benefits come from limited partnerships with a small number of suppliers, and companies that help customers save money through investments will receive returns from loyal customers and long-term customers
What is blocking adoption?
Although the company has been using electronic
Over the past three years, buyers and suppliers have been slow to fully embrace these systems.
Although many people think
Procurement, as a new technology, is a radical change in business processes.
Many companies mistakenly choose technology and then try to adapt their processes to the product.
If there is no authorization to use the system internally, buyers will usually call their favorite suppliers whether or not they sign a contract.
Many suppliers are slow to adopt e-commerce
Fear of merchandising, lack of catalog data, and reluctance to invest in high-tech, sourcing.
The XML standards are also changing, with each vendor using its own version of XML.
What will the future look like? E-
Procurement is in a very early stage, and the industry is undergoing great changes.
Many companies are still trying to exchange electronic data (EDI)
Their rank. onesuppliers.
In a few years, we may go beyond that and asXML is the standard for trading business documents and connecting business partners.
Focus on cost savings is the driving force of e-commerceprocurement.
Due to the need to show return on investment, the senior management will entrust e-
Procurement use to reduce costs.
With the popularity of applications and changes in business processes, the demand for data will increase.
The demand for automation will also increase.
E-commerce today
The focus of the procurement is on known or commonly ordered items, and buyers will begin to look for and automate ways to buy new products.
Customers who order known parts through e-commerce today
Better data and improved search capabilities are available by looking at part numbers, brief descriptions and prices.
Today, the quantity and price of spart will be expanded, including detailed descriptions, attributes, online data sheets, technical specifications and even pictures.
Customers currently browsing paper catalogs want to browse online catalogs with the same information.
Globalization of procurement is another factor in future ofeprocurement.
Many North American companies, whose revenues come from overseas, are well aware of the strategic importance of global sourcing and sourcing.
Since many of the material suppliers used in the PCB industry are located in Asia, PCB manufacturers need to purchase from around the world and experience the cost-effectiveness of nearby purchases.
In addition to the fact that suppliers and buyers can see the benefits of the market in a faster time, there are many challenges.
Global supplier participation in e-commerce
Procurement must be adapted to issues such as language and currency conversion, order processing and customs, customs and logistics handling of global orders.
As PCB manufacturers adopt more efficient purchasing methods to increase profits and productivity,
Procurement will become a more attractive solution.
However, PCB manufacturers, whether or not they
Whether the procurement system is in place, it should be proactive to establish a partnership with e-commerceprocurement-
Enable the supplier now.
Building relationships with these suppliers will enable pcb manufacturers to gain a competitive advantage when turning to e-commerce
Procurement system. ---
Tony Chien is vice president and general manager of e-commerce and Dianne Ahrens is director of business development and Internet partnership with Newark electronics, Chicago, IL; e-
Postage: Dahrens @ Newark. com. ---
The automatic quotation system saves time and money for the PCB warehouse to purchase products effectively, which is a difficulty and time --consuming job.
Purchasing costs usually exceed the cost of the product, when managing hundreds or even thousands of non-
Production inventory.
Many warehouse managers in the PCB industry are now turning to suppliers who are able to provide detailed inventory quotes for the entire warehouse.
However, it is not easy for the supplier to make a detailed quotation.
The turnaround time for a large quote is also a challenge for the inventory manager, who needs a quick response to help design the project move forward and keep the maintenance department running properly.
In addition, the PCB engineer\'s demand for hardwareto-
It is found that part scanning consumes valuable time and increases the cost of the quotation process.
Therefore, many suppliers now charge customers for purchasing products.
As the time to find and quote uncommon items increases, the cost of customers and suppliers has risen sharply.
One step to cite all products in the warehouse is by far the most costly-
An effective way to get current and future product requirements.
In addition to getting a quote quickly, the warehouse manager needs to consider other issues such as lead time, pricing, and minimum order requirements.
For example, if the quotation for a part is $25 per piece, but the quotation does not specify a minimum purchase quantity of 100, the warehouse manager may not be aware of it, his company paid a higher price for a small amount of goods. Such over-
Checking the quotation details can quickly and significantly affect the company\'s profits (see chart).
Some vendors have taken steps to streamline the customer\'s quotation process to provide additional value.
For example, a supplier can set up a procedure for qualified customers to offer a quote for any number of products within 24 to 48 hours.
Quotations can be made either in paper or electronically and should include prices, lead time, minimum order requirements and alternatives.
Another recommended feature of this program should be an inventory management software tool that monitors inventory levels and notifies warehouse managers when inventory reaches a predetermined re-order point.
These types of technologies
System-based can help inventory managers in the PCB industry get quotes faster, manage inventory better, and monitor pricing and supply issues more effectively. -
Steve Hopkins, assistant vice president of value
New services for Newark Electronics; e-
Postage: shopkins @ Newark. com. Copyright [copyright]
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