E-procurement (electronic procurement, sometimes also known as supplier exchange) is the business-to-business or business-to-consumer or business-to-government purchase and sale of supplies, work, and services through the Internet as well as other information and networking systems, such as electronic data interchange.
Four types of P2P integrations areas where eProcurement or other frontline buying systems are integrated in real-time:
- The first (and most common) is integration into core ERP/MRP environments focused on core financials and inventory. We should note that rarely is any financials integration "vanilla," even in the case of standard ERP/MRP integration, which often forms the connectivity between front line buying and procurement activity and IT/ finance systems. Even in this area, typical fields that organizations map for integrations are often highly dependent on the specific ERP and business application packages they are integrating with (e.g., GL coding structure). Moreover, the degree to which the underlying financials system is set up from a financial accounting, corporate governance and managerial accounting will dictate the level of ideal integration required for P2P.
- The second is focused on procurement related integrations into a range of toolsets. These may include vendor management systems (VMS), software monitoring/metering/licensing applications, T&E and travel tools, contract management systems, supplier management applications and e-invoicing/AP automation tools.
- The third is to more generalized business applications outside of procurement that are relatively similar across industries. This can include CRM, HR, specialized inventory, warehouse management, asset management, claims/warranty and related toolsets.
- The fourth is industry-specific, such as in retail/point-of-sale (POS) systems. Other examples include contract management and e-invoicing capabilities necessary in environments such as oil and gas, where a $200 million PO might have a single-line item: "drill an offshore well."
E-Procurement is very technical hence formal learning is encouraged.
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E- Procurement
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Article extracted from Spend Matters
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