e-Procurement is hot. And no wonder: companies are reporting that e-Procurement systems are saving them millions of dollars annually -- in some cases, billions. GE's Jack Welch claims that GE will save $10 billion dollars from e-procurement. Cisco Systems's John Chambers says it is Cisco's #1 priority. Now, there's a start-to-finish guide to implementing e-Procurement in any enterprise. Dale Neef covers it all -- from making the business case to architecting the solution, managing the risks to reaping the benefits. Neef begins with an up-to-the-minute overview of the promise of B2B e-procurement in supporting globalized, extended enterprises. He reviews the options for deploying e-Procurement, including internal solutions and e-Hubs; then identifies key issues associated with e-procurement in the enterprise. Learn how to make the business case for (or against) e-Procurement, and how to architect the optimal solution. You'll find detailed coverage of today's leading e-procurement technologies, including XML; and today's leading approaches, from ERP-based solutions to enterprise application integration. Neef covers the entire lifecycle of the e-Procurement initiative, identifying key pitfalls and areas of risk -- and proven solutions.
Author(s): Dale Neef
Publisher: FT Press
Year: 2001
Language: English
Pages: 223
e-Procurement From Strategy to Implementation......Page 2
Title Page......Page 4
Copyright 2001 by Prentice Hall......Page 5
TABLE OF CONTENTS......Page 8
PREFACE......Page 12
CHAPTER 1 The New World of Business-to-Business E-Commerce......Page 18
IS IT FOR REAL?......Page 21
THE UNIQUE NATURE OF B2B E-PROCUREMENT......Page 23
DRAGGING THEIR FEET......Page 27
IS B2B 4 U?......Page 31
ENDNOTES......Page 36
CHAPTER 2 The Fundamentals of Procurement......Page 40
INDIRECT PROCUREMENT: ORM VERSUS MRO......Page 42
Select Goods......Page 45
Creating the Purchase Order......Page 46
NEITHER DIRECT NOR INDIRECT— JUST E-PROCUREMENT......Page 47
E-PROCUREMENT VISION OF THE FUTURE: TOMORROW......Page 48
ENDNOTES......Page 51
CHAPTER 3 Understanding the Strategic Nature of E-Procurement......Page 52
BACK-END SYSTEMS AND THE MODERN ORGANIZATION......Page 55
THE STRATEGIC NATURE OF E-PROCUREMENT......Page 57
STRATEGIC FOCUS OF THE E-PROCUREMENT INITIATIVE......Page 59
CHAPTER 4 Making the Business Case for E-Procurement......Page 62
PROCESS EFFICIENCIES......Page 63
Process Automation Savings......Page 64
Compliance......Page 66
Leverage......Page 70
STRATEGIC SOURCING......Page 71
THE CHANGING ROLE OF PROCUREMENT SPECIALISTS......Page 74
ENDNOTES......Page 75
CHAPTER 5 The E-Procurement Software Landscape......Page 76
THE STORY SO FAR......Page 77
E-PROCUREMENT SOFTWARE SPECIALISTS......Page 81
ERP SUPPLIERS AND E-PROCUREMENT......Page 83
TRANSLATION AND CONNECTIVITY......Page 85
PAYMENT SYSTEMS......Page 87
FINDING YOUR WAY THROUGH THE MINEFIELD......Page 88
ENDNOTES......Page 89
CHAPTER 6 The Architecture of Web-Based Procurement......Page 90
SELL-SIDE ONE-TO-MANY: THE STOREFRONT MODEL OR SHOPPING MALL......Page 91
BUY-SIDE ONE-TO-MANY MODEL......Page 93
Buy-Side Central Procurement......Page 95
INDEPENDENT PORTAL AND ONLINE TRADING COMMUNITIES......Page 96
VERTICAL E-MARKETS AND MARKETPLACE CREATORS......Page 98
HORIZONTAL E-MARKETS......Page 101
AUCTIONS......Page 104
APPLICATION SERVICE PROVIDERS......Page 109
THE FUTURE OF E-MARKETS......Page 111
ENDNOTES......Page 115
CHAPTER 7 Standards......Page 116
FROM EDI TO XML......Page 117
CHAPTER 8 Government and E-Procurement......Page 124
ADVANTAGES WILL NOT BE IN SAVINGS ALONE......Page 125
GOVERNMENT-TO-BUSINESS E-COMMERCE......Page 127
THE MILITARY......Page 131
ENDNOTES......Page 133
CHAPTER 9 The Future of E-Procurement......Page 134
ENTERPRISE VERSUS E-MARKET MODELS......Page 135
CONSOLIDATION OF E-MARKET VERTICALS......Page 136
SINGLE-SOLUTION SUPPLIERS......Page 138
THE CHANGING ROLE OF PROCUREMENT SPECIALISTS......Page 141
GOVERNMENT DRIVEN......Page 142
CHAPTER 10 Assessing the Pros and Cons of E-Procurement......Page 144
For Buyers......Page 145
For Sellers......Page 146
System-to-System Integration Issues......Page 147
Initial Investment Costs......Page 149
Security and Encryption Issues......Page 150
Fundamental Changes to Procurement Business Processes and Company Culture......Page 153
WHY E-PROCUREMENT INITIATIVES FAIL......Page 154
ENDNOTES......Page 155
CHAPTER 11 Guiding Principles for Developing an E-Procurement Initiative......Page 156
GROUND RULES FOR AN E-PROCUREMENT PROJECT......Page 158
Executive Sponsorship and Participation......Page 159
Integrate E-Procurement Project with E-Business Strategy......Page 160
A Legitimate Business Case......Page 161
Strong Change Management Program......Page 163
Redesign Business Processes......Page 164
Integration Issues......Page 166
Involving Suppliers and Vendors......Page 167
Bringing in Consultants......Page 168
NEW RESPONSIBILITIES FOR CONSULTANCIES......Page 170
ENDNOTES......Page 174
CHAPTER 12 Structuring the Project: Phases of an Enterprise-wide E-Procurement Initiative......Page 176
STRATEGY PHASE......Page 177
Strategic Direction, Guiding Principles, and Project Goals......Page 180
Target Performance Measures......Page 181
The Supplier Side......Page 182
Resources and Critical Areas of Concern......Page 183
Project Readiness Assessment and a Plan of Work......Page 184
Confirming Supplier Support and Compatibility Levels......Page 185
Completing an Implications Analysis on Changes to Activities and Employee Jobs......Page 186
Cost......Page 188
Integration and Interoperability......Page 189
IMPLEMENTATION PHASE......Page 190
ENDNOTE......Page 191
CHAPTER 13 The Executive E-Procurement Strategy Workshop......Page 192
STEP ONE: DEFINING AND AGREEING ON FUNDAMENTALS......Page 194
STEP THREE: REVIEWING THE BUSINESS VISION......Page 196
STEP FOUR: UNDERSTAND THE PROCUREMENT BUSINESS CASE......Page 197
STEP FIVE: DEVELOPING SCENARIOS......Page 199
STEP SIX: PROJECT READINESS REVIEW......Page 200
CHAPTER 14 Creating an Effective Plan of Change Management......Page 202
E-Procurement Program Manager......Page 205
Nontechnical Program Director......Page 207
THE CORE TEAM......Page 208
CREATING A BUSINESS CHANGE IMPLEMENTATION PLAN......Page 210
INDEX......Page 215