L4M1 - 2.3 Explain how
electronic systems can be
used at different stages of the
sourcing process
Elements of the CIPS Procurement Cycle that are commonly carried out electronically - Answer: - Raising
& receipt of requisition - e-requisitioning
- Researching product ranges - e-catalogues
- Sourcing - e-ordering & e-soucing
- Payment - e-payment
Electronic procurement - Answer: Uses the same process as the CIPS Procurement Cycle but includes
technology rather than manual processes.
Consists of:
1. E-sourcing
2. E-purchasing
E-procurement Process - Answer: E-sourcing
Knowlege
Specification
RFQ/Tender
Negotiation & Evaluation
Contract
E-purchasing
Identifying the need & requisition
Authorise
Order Receive
, Payment
This is the cycle.
E-requisitioning - Answer: First part of the electronic process. Triggered when an internal customer is
informed of a need.
Once the individual knows that an item is required, they can raise an internal e-requisition. This contains
all the same information as in the manual process - the only difference is that this document will be
raised & sent to the procurement department electronically.
Advantages of E-requisitioning - Answer: - Quicker than the manual process. Reduces the amount of
time an individual is taken away from their core activity. Can be processed electronically.
- Traceability.
- Consistent Style
- More control
- Reduces risk. Less chance of an electronic document getting lost than a paper-based one, full
traceability of who sent it, to who and when.
- Saves cost in long term
Disadvantages of E-requisitioning - Answer: - Large investment to install e-system
- Less personal - lack of contract can be seen as negative as the two people involved may never speak to
or see each other. Impersonal transaction which could be detrimental to the long-term relationship.
- Individuals may resist change
- Reliant on technology - if there is a power failure or technological problem then the whole process will
stop. Could have serious effects on the organisation & cause problems for consumers.
- Individuals need training (downtime from the role)
- Affected by power failure
E-catalogues - Answer: Used by buyers to research products & by suppliers to show available ranges.
Found on websites or may be shown on the procuring organisation's intranet & can be usually viewed
online or downloaded for future reference.
electronic systems can be
used at different stages of the
sourcing process
Elements of the CIPS Procurement Cycle that are commonly carried out electronically - Answer: - Raising
& receipt of requisition - e-requisitioning
- Researching product ranges - e-catalogues
- Sourcing - e-ordering & e-soucing
- Payment - e-payment
Electronic procurement - Answer: Uses the same process as the CIPS Procurement Cycle but includes
technology rather than manual processes.
Consists of:
1. E-sourcing
2. E-purchasing
E-procurement Process - Answer: E-sourcing
Knowlege
Specification
RFQ/Tender
Negotiation & Evaluation
Contract
E-purchasing
Identifying the need & requisition
Authorise
Order Receive
, Payment
This is the cycle.
E-requisitioning - Answer: First part of the electronic process. Triggered when an internal customer is
informed of a need.
Once the individual knows that an item is required, they can raise an internal e-requisition. This contains
all the same information as in the manual process - the only difference is that this document will be
raised & sent to the procurement department electronically.
Advantages of E-requisitioning - Answer: - Quicker than the manual process. Reduces the amount of
time an individual is taken away from their core activity. Can be processed electronically.
- Traceability.
- Consistent Style
- More control
- Reduces risk. Less chance of an electronic document getting lost than a paper-based one, full
traceability of who sent it, to who and when.
- Saves cost in long term
Disadvantages of E-requisitioning - Answer: - Large investment to install e-system
- Less personal - lack of contract can be seen as negative as the two people involved may never speak to
or see each other. Impersonal transaction which could be detrimental to the long-term relationship.
- Individuals may resist change
- Reliant on technology - if there is a power failure or technological problem then the whole process will
stop. Could have serious effects on the organisation & cause problems for consumers.
- Individuals need training (downtime from the role)
- Affected by power failure
E-catalogues - Answer: Used by buyers to research products & by suppliers to show available ranges.
Found on websites or may be shown on the procuring organisation's intranet & can be usually viewed
online or downloaded for future reference.
