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Role of e-commerce e-procurement in B2B

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This presentation describes role of e-procurement and e-commerce in business to business. Detail case study of e-procurement in Walmart has been discussed. Benefits of e-procurement and different types of market place has been covered in this presentation.

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Role of e-commerce e-procurement in B2B

  1. 1. Topic: Role of e-Procurement/e- Commerce in B2B By- Mr.Lovekshitij Suryavanshi
  2. 2. e-Procurement • It is B2B, B2C and B2G purchase & sale of supplies, work & services over internet or ERP. • e-Procurement consist of - Purchase order integration - Catalogue management - Vendor management - e-Tendering - e-Auctioning - Order Status - Ship Notice - e-Invoicing - e-Payment - Contract Management
  3. 3. • No standard process • Individual procuring departments defines their indenting process. • In works procurement, administrative approval and technical sanction are obtained in electronic format. • In goods procurement, indent generation activity is done online.
  4. 4. Why e-Procurement? • Market is Large & expanding • B2B is 80-90% of e-commerce • It has changed business process • Automates of supply chain • Great benefits for buyer & supplier as well as the overall economy
  5. 5. Benefits of B2B e-Commerce • Buyer Benefits - Reduced procurement process cost - Reduced inventory costs - More choices & Better pricing - Efficient Logistics - Lower Cycle times
  6. 6. • Supplier Benefits - Lower sales & marketing cost - Reaching new customers : generating new revenue - Reduce the process cost of order management - Better customer support Overall Benefits: - Increased market efficiency - Greater Market Intelligence
  7. 7. The Basic Supply chain Fig: Activities associated with the flow & transformation of goods from raw materials to end user
  8. 8. Global B2B • Automobile Industry - GM, Ford & DaimlerChrysler join forces to form a $500 billion electronic marketplace with their supplier • Food & Beverage Industry - Kraft Foods, P&G, Coca Cola, Nestle and Unilever formed a industry e-marketplace - $200 billion purchase of goods and services • Other International Examples - Federal Express, Cisco, Dell and General Electric
  9. 9. e – Procurement Market Functions
  10. 10. Models of B2B e- Commerce • Buyer Oriented Marketplace • Supplier Oriented Marketplace • Intermediary-Oriented Marketplace
  11. 11. Buyer Oriented Marketplace • Buyer opens a market on its server • Invites potential supplier to bid on the RFQ (Request for Quotes) • Software agent is needed • e.g: GE Lightning’s TPN (Trading Process Network) http://www.tpn.geis.com
  12. 12. Supplier Oriented Marketplace • Manufacturer driven e- Stores • Same store used by Individual consumers(B2C) & business corporate (B2B) • May involve auctions run by supplier e.g: 1.Dell : for PCs & High End servers 2. ShopClues
  13. 13. Supplier oriented marketplace by ShopClues in India
  14. 14. Intermediary-Oriented Marketplace • 3rd party marketplace: matches buyers & seller • Brings buyer & seller at one place • e.g: industry.net , procure.net , indiamart.com
  15. 15. Types of communication Network • Three types of communication network
  16. 16. Walmart e- Procurement • Online system ‘Walmart Suppliers’ • Vendors participates from all over the world • Available in 30+ languages e.g: for Indian vendors system available in Hindi, Punjabi and English • Works on ground level • Online Training
  17. 17. • Trains on Walmart Standard • Online Application • How to make product with less investment • Laws & policies - Labor Hour - Hiring - Compensation - Anti Corruption
  18. 18. • Dedicated portal to maintain ethics among vendors • http://ethics.walmartstores.com https://walmartethics.com • User: Vendors & Workers • The 3 Basic Beliefs - Respect for the Individual - Service to the Customer - Striving for Excellence
  19. 19. How Walmart is benefitted due to e –procurement? • 60, 000+ supplier • Best Quality at cheapest price • Billions of Happy customers • World’s biggest Discount Store • Minimum 2%-5% discount on all products • Highest percentage of returning customer in industry
  20. 20. Continued… • Money Spent at per hour/day: $36,000,000 • Profit Makes every min: $34,880 • Total number of customers per week: 100,000,000 (globally) • World Rank by economy if Wal-Mart were a country : 19th
  21. 21. • All this has become possible because Wallmart opted e - Procurement.
  22. 22. Thank You!

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