Page 113 - BA1 Integrated Workbook STUDENT 2018

Customers, suppliers and supply chains

2.2 E-procurement

The term e-procurement is used to describe the electronic methods used
in every stage of the procurement process, from the identification of the
organisation’s requirements through to payment.

E-procurement can therefore have several main applications.

 Electronic Data Interchange (EDI) – link the organisation’s systems to those
of its suppliers.

 Use of the Internet – to shop around for suppliers.

 Disintermediation – buy from suppliers further up the supply chain to reduce
costs.

2.3 Other uses of IT within the upstream supply chain

 Communication – email and other IT-based communication can speed up the
flow of information between the organisation and its suppliers.

 Information gathering – gathering and processing of information relating to the
upstream supply chain.

 Extranets – allow the organisation to grant suppliers access to information to
aid collaboration.

Illustrations and further practice

Now review Illustrations 1 to 3 and TYU 1 to 3 in Chapter 11 of the text.

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