Internet-based Procurement of Direct Materials

Designing the Support of Procurement by Internet – Technologies (diss.)

Researchers:

Dr. R. Alard

Motivation:

Most companies face today considerable difficulties when attempting to plan, design, and implement Internet-based electronic procurement solutions. The thesis addresses this deficit. We have developed a model that aims to provide a comprehensive concept for the design of direct goods procurement utilizing Internet-based technologies. A discussion of relevant aspects of procurement management is followed by an overview of Internet-based electronic procurement solutions. A typology arranges Internet-based electronic procurement solutions according to the institutional provider of the application. Four basic forms are presented along with their underlying concepts and their advantages and disadvantages from the perspective of procurement. In addition, data exchange formats that are particularly relevant to Internet-based electronic procurement are presented (EDI, XML). The second part of the thesis shows the use of an analysis and design matrix for the procurement of direct goods and the support potentials of Internet-based electronic procurement solutions. On the basis of proven procurement strategies, five different characteristic procurement reference relationships are differentiated for the mechanical engineering and plant manufacturing industry. The particular procurement process phases that can be supported by Internet-based electronic procurement solutions and the procurement reference relationships for which this type of support is appropriate are identified – based on a differentiated examination of the use of advanced information and communications technologies with an aim towards intelligent deployment. Finally, the thesis presents two methods: a procedural method that can be used when planning, designing, and executing Internet-based electronic procurement solutions and an assessment method for evaluating organizational changes caused by the use of Internet-based electronic procurement solutions. Two case studies of the implementation of innovative Internet-based electronic procurement solutions for strategic and operational procurement illustrate the use and practical relevance of the methods. In sum, the analysis and design matrix offers procurement management a way to plan, develop, implement, and evaluate Internet-based electronic procurement solutions systematically in order to get real value from Internet-based electronic procurement in supply-chain scenarios.

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