Procurement and Outsourcing Xiaohong Pang Automation Department Shanghai Jiaotong University
Procurement and Outsourcing Xiaohong Pang Automation Department Shanghai Jiaotong University
Lecture Outline Introduction Outsourcing Benefits and Risks A Framework for Buy/Make Decisions ■ e-Procurement A Framework for e-Procurement Case Study:FreeMarkets Online
Introduction Outsourcing Benefits and Risks A Framework for Buy/Make Decisions e-Procurement A Framework for e-Procurement Case Study: FreeMarkets Online Lecture Outline
E-Procurement In the mid to late 90s,business to business automation was considered a trend. It would have a profound impact on supply chain performance. Between 1998 and 2000,hundreds of e-markets were established in dozens of industries.from chemicals and steels to utilities and human resources. These e-markets promised increased market reach for both buyers and suppliers,reduced procurement costs and paperless transactions
E-Procurement In the mid to late 90s, business to business automation was considered a trend. It would have a profound impact on supply chain performance. Between 1998 and 2000, hundreds of e-markets were established in dozens of industries, from chemicals and steels to utilities and human resources. These e-markets promised increased market reach for both buyers and suppliers, reduced procurement costs and paperless transactions
Why Holding High Expectations for E-Procurement In the mid 90s,many companies wanted to outsource their procurement functions, since the procurement process is highly complex,it requires significant expertise, and is very costly. These companies need help with their procurement functions
Why Holding High Expectations for E-Procurement In the mid 90s, many companies wanted to outsource their procurement functions, since the procurement process is highly complex, it requires significant expertise, and is very costly. These companies need help with their procurement functions
The Move to B2B Commerce U.S.eCommerce Transaction Percent of FORTUNE 1,000/very large Volumes companies that have/intend to: Billions 3,000 2,500 Establish eCommerce 92% 2,000 presence: 1.500 Implement Internet 89% 1.000 B2B purchasing: 500 Develop B2B marketplace: 53% 0 B2C 1999 2000 2001 2002 2003 2004 Source:PricewaterhouseCoopers;Forrester;Goldman,Sachs
The Move to B2B Commerce