Procurement Management E-Procurement

Procurement Management

E-Procurement

1.0 Introduction

Electronic procurement or e-procurement is an Internet Technology application which is to be uses internet function. It is a procurement system which enable supplier to sell their product and services to the online shopper. This system also helps to link and develop good relationship between supplier and buyer. The internet usage in Malaysia nowadays becomes more important to various industries. The Malaysian government’s e procurement system was implemented in 1990. In addition e-procurement can enhance corporate through more reaching market over the internet.

The implementation of e-government is seek to improve the convenience, accessibility and quality of interaction with the citizen and business, it also parallel will improve information flow and process within government to improve the speed and quality of policy development, coordination and enforcement (Maniam et al, 2009).

According to Martin and Matlay (2001), the new adoption of new technology is very important to surviving and growing of an organisation. According to Boer, Harink and Heijboer (2002) there are six form of e-procurement that is e-ordering or e-maintaining repair operate, web enterprise resource planning, e-sourcing, e-tendering, e-reserve auctioning or e-auctioning and also e-information. E-procurement software is highly mobilized where it can be used anywhere as long as internet connection exist compare with old traditional ways by using paper as a medium of transactions. It is tedious, time and money consuming, involed lots of documenting process. The software is highly dynamic and all the data can be updated easily according to the market movement. Every business process can smoothen with this software (Ann and Jason, 2006)

2.0 Literature Review

According to Neef (2001), e-procurement is new phenomenon but what it wants to achieve is not new. As long as companies have been around, they have required improving efficiency and effectiveness. Neef (2001) have given three of this example, firstly is e-procurement system continue the trend of reducing transaction costs by automating process, replacing human labour with information technology. Secondly, e-procurement facilities the breakdown of functional silos toward horizontal process that facilitated increased integration. Neef (2001) argues e-procurement are an important step toward development of the extended enterprise where the supply chain becomes a continuous, uninterrupted process extended from buyer through selling partners.

E-procurement or electronic procurement is the exchange of information across electronic network, at all stage in supply chain either within the organization, between businesses or between businesses