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.

1. Topic: Role of e-Procurement/e-
Commerce in B2B
By-
Mr.Lovekshitij Suryavanshi

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. • 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. 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. Benefits of B2B e-Commerce
• Buyer Benefits
- Reduced procurement process cost
- Reduced inventory costs
- More choices & Better pricing
- Efficient Logistics
- Lower Cycle times

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. The Basic Supply chain
Fig: Activities associated with the flow & transformation of goods
from raw materials to end user

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. e – Procurement Market Functions

10. Models of B2B e- Commerce
• Buyer Oriented Marketplace
• Supplier Oriented Marketplace
• Intermediary-Oriented Marketplace

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. 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. Supplier oriented marketplace by
ShopClues in India

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. Types of communication Network
• Three types of communication network

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

18. • Trains on Walmart Standard
• Online Application
• How to make product with less investment
• Laws & policies
- Labor Hour
- Hiring
- Compensation
- Anti Corruption

19. • 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

20. 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

21. 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

22. • All this has become possible because
Wallmart opted e - Procurement.

23. Thank You!