V. ARE YOU AWARE OF THE TECHNICAL FOUNDATIONS FOR E-PROCUREMENT?


E-mail / Web Connection: Having an e-mail / web connection requires obtaining a computer system and procuring an Internet Service Provider's services for Web connection, e-mail address(es), and a domain name / web site. The home page (web site) serves as an electronic business card of the company for limited interaction such as supplying order forms online, answering inquiries via e-mail, searching for documents, and preparing catalogues, leaflets, etc. for customers, users, employees, and business partners. For instance, by utilizing a spreadsheet such as Excel for purchase orders, you could streamline communication and eliminate redundant entering of purchase order information.  However, with only a web site and web connection, this type of system is not connected to information systems that support the operation of the firm (i.e., there is no ERP connection).
 

Internal Enterprise Resource Planning System (ERP):  Enterprise Resource Planning software, also known as Business Management System (BMS), integrates business processes into information technology.  All processes of a company are monitored and processed by one tool or integrated systems.  ERP software systems integrate all business processes into information technology.  All processes of a company can be monitored and processed by one tool.  ERP systems are the backbone and central nervous system of an organization, responsible for capturing, organizing, and presenting a vast amount of financial, process, and performance information. Although most e-procurement software applications provide solutions for mainly large companies, some software suppliers (e.g., SAP, Oracle, etc.) have developed small business software solutions.  It is important to note that the different parts of the ERP system do not have to be purchased at the same software company, but they need to be compatible to ensure a smooth connection and interaction.

 

For further and more detailed information on overall ERP Topics this web page could give help: http:// www.erpassist.com

 
 
 

Application Service Provider (ASP):  An Application Service Provider provides software applications and services for rent, often including ERP systems modules, on a fixed-cost basis.  These third-party providers provide a wide range of services, including full web-based e-procurement services.  Instead of purchasing an expensive ERP system, the small enterprise can rent company-specific parts of an ERP system from the ASP, thereby reducing acquisition and implementation and staff costs.

 

An ASP could implement and install the database to run an ERP system, provide a service to run the ERP system of your company on the ASP system, train staff on use of the system, and provide support and follow-up.

 

An ASP may also provide interfaces to other companies for automated e-procurement and / or to marketplaces.  To find an adequate ASP, it is important to ask software distributors such as SAP and / or hardware distributors such as IBM, Compaq, or HP.  Make sure to compare prices and offers before signing a contract.