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