Electronic Systems FCs LO2 Flashcards
Q6C1
Question 6: What is an electronic system (ESys)? Describe the following: e-requisitioning, e-catalogues, e-sourcing, e-payment technologies (25 marks)
- AKA E-procurement
- Is B2B / B2C of G/Serv. purchases
- Uses Internet or Info/ networking Sys.
- E.g. ERP systems
- Replaces time-consume manual processes
- Used throughout entire SC
- It`s > than single buyer + Supp.
- ESys examples are inc. in this essay
Q6C2
E-requisitioning (E-ReqSys)
*Q6C2-C4 are for E-ReqSys
- Used in ManuOrgs. to order Raw Mat.
- electronic ‘bill of materials’ is created +
- stock levels automatically updated
- As materials get used +
- Pre-determined lvl reached -> New Order
- Placed @ E-ReqSys => MRP
Q6C3
How having E-ReqSys tools often as cloud-based helps buyer?
- Simplifies buying process + track orders
- Provides higher visibility lvl on spend
Q6C4
Give a disadvantage of E-ReqSys
- Requires technology interfacing
- Bet. buyer and supp. => Expensive
Q6C5
E-catalogues (E-Catl.)
*Q6C5-C7 are for E-Catl.
E-catalogues
- Digi. / online catalogue version
- Detailed Doc. on items for sale + £P
- Has 2 Catl. types – buy side + sell side
Q6C6
What is a buy-side Catl.?
- An Internal sys. buyer uses
- Has pre-approved. supp. list
- Of whom purchases can be made
- Inc. commonly bought items details + £P
- This ↓maverick spend + ensures…
- Consistency in purchases
- E.g. When lightbulbs needs to be ordered
- Same lightbulbs are ordered => Consistent
Q6C7
What is a sell-side Catl.?
- Provided by Supp. on what Supp. offers
- Details inc. £P + discounts for bulk buying
- Let buyers know of availability
- Supp. web show item X has 2 in stock
- Available for anyone to view
- E.g. Argos / Amazon
Q6C8
E-sourcing
- Helps buyer find most suitable supp. tool
- E.g. e-tendering webs
- For buyer to host competition to find supp.
Q6C9
Name 2 types of E-Sourcing tool
1 - E-auctions
2 - Artificial Intelligence
Q6C10
Give an E-sourcing tool
E-auctions
- The tool (web) hosts all tendering docs
- Allows buyers + supp. to communicate
- During tender process
- E.g. Need for spec. clarifications
- Tool allows transparency + =treatment
- Saves time in tender exercise completion
Q6C11
How does Artificial Intelligence (AI) help as a E-Sourcing tool.
- Having PQQs be automated
- Can ‘read’ tender submissions
- ∴ automatically exclude supp.
- That doesn`t fulfil required criteria
Q6C12
E-payment technologies
- methods to pay G/Serv.
- Replaces cash + cheques
- E.g. online bank transfers,
- Electronic PO + Invoices +
- Pre-Payment cards (P-Pay) use.
Q6C13
Give example/use of using E - payment technologies
- E.g. Maintenance team need
- Purchase low-£V items: screws + paint
- Issue team a P-Pay card with a limit (£500) - To buy what they need.
- The company will then automatically be sent a monthly invoice for all of the purchases.
Q6C14
Advantage of E - payment technologies
- Saves time in issuing maintenance team
- No need give cash/cheque for purchases
- Allows greater spend visibility
- E.g. Screws bought per year?
- Can use for staff travel / business trips
Q6C15
Conclusion for:
Question 6: What is an electronic system (ESys)? Describe the following: e-requisitioning, e-catalogues, e-sourcing, e-payment technologies (25 marks)
- Many benefits using electronic tools (list)
- For Proc. teams
- Inc. enhance EC-E of Proc. process.
- E-Proc. tools helps develop ProcFunc.
- To be pro-active > reactive approach
- In purchasing.
Q6C16
Give Examples of E-Sourcing software/sites
For example, e-sourcing tools include MyTenders.com and Delta E-Sourcing. PO / Invoice systems include Sage, Xero and QuickBooks.
Q7C1
Give Intro for:
Question 7: Explain, with examples, the advantages of a Procurement Department using electronic systems (25 marks)
- Using electronic Sys. has Proc. benefits
- Inc. => EC-E0 + Accu. + transparency
- Essay will show why PD must adopt ESys.
Advantage 1: Cost-Savings
- Electro. tools use saves Org. £M over time
- Due to Init.£C
- Electronic portals contribute to
- Supp. to ‘sharpen their pencils’
- Unlike in Trad. Phone calls
- Gives best £P to win work/project
How Communication contribute to cost Savings
- Digital Comm.
- No £C from paper/postage
Give 2 Examples of Cost Savings via
1 - E-Procurement
2 - E - Sourcing
- E.g. e-procurement tools used saves £M
- By access to wider pool of suppliers.
- E.g.2. Using e-sourcing portal
- Tender reaches large Supp.no.`s
- ↑ tender competitiveness = ↓ £P
Advantage 2: Time savings
Give E.g. via
1 - Tool used (How?)
2 - Cake Manu. Example using Tool in [1]
- Cos E-tools automate lots of processes
- E.g. E-Req. tools
- Orders canbe placed automatically
- When MatQuan. reach a certain lvl
- E.g. Cake ManuOrg. using MRP Sys.
- Calculates Eggs Quan. required per day
- E.g. If company have <= 50 eggs left
- New order needs & will be issued to Supp.
How MRP Sys. (E-Req. Sys.) saves time for ProcDep. (PD)?
- No need for PD to phone Supp. +
- To lace the order with Supp.
- Completed automatically
Advantage 3: Access to higher levels of information (HLInfo)
- E-Proc. gives centralised access to all data
- Access Sys. for historical purchases
- Rather through folders + filing cabinets.
- E.g. Electronic PO system
- will hold all historical POs details,
- E.g. If Q`s raised 4 months ago on PO
- Will be easier + quicker to find info.
- Some Sys. may provide analytical data
- E.g. ∆ spend over time
- Or Supp. the buyer spends most £M on
With an example:
How can HLInfo can help with future decision making?
- E.g. Org wishes to consolidate Supp. base
- Need historical data analysis prov. by ESys - On Supp. least used +
- Removed from ‘pre-approved supp. list’
- May not be available in manual Sys.
