Many individual orders and high procurement costs with low volumes and minimal call-offs at the same time make the procurement of C-parts a challenge in large manufacturing companies. However, e-procurement systems are used to be able to procure consumables systematically and efficiently; these handle the operational processes on desktop purchasing systems and enable a more or less automated digital interaction between the supplier and buyer depending on the requirement.

Sell-side e-procurement: The disadvantages of webshops

The best known e-procurement solution is the supplier’s webshop that is primarily used for B2C procurement, but presents a number of obstacles and causes additional costs in the B2B sector:

  • The webshop is limited to a finite product portfolio.
  • The user is forced to leave their own system and go into the supplier’s system.
  • Order details are not automatically kept in the customer’s system.
  • The floodgates are opened for maverick buying.
  • It makes controlling more difficult
  • Considerable efforts are needed to control incoming goods and quality.
  • Special delivery requirements cannot be taken into account.
  • The processing of invoices and payments is more difficult.

Buy-side: Company’s own e-procurement solutions

Complex systems procurement management, production control and ERP systems tailored to the respective business area are already maintained in large industrial companies that efficiently manage and control the flow of goods. Since a move away from these systems is always associated with the above-mentioned costs and disadvantages, there is often a requirement in the B2B sector for the supplier to adapt and ideally establish an appropriate connection to the customer’s system. The customer therefore has the option to order through their own system securely, systematically and efficiently. The advantages of this solution are obvious:

  • The customer can maintain all the parts that they need.
  • The order processing personnel work in a familiar system.
  • The order and delivery data can be processed directly in the customer’s system.
  • Suppliers and products are defined and qualified.
  • The controlling of the procurement process is covered by internal mechanisms.
  • Goods receipt checks are handled automatically.
  • Individual delivery conditions can be integrated.
  • Invoices and payments are processed automatically.

Project plan

E-procurment project plan

There are three steps at the start of every procurement project. First of all, the customer defines the C-parts and quantities required and determines the service requirements. At the same time, we provide product advice and create an individual service concept for ordering and deliveries. Additional procurement optimisation and preparations for the implementation of the-procurement system are made after providing this basic advice:

  1. Data cleansing and harmonisation
  2. The creation of an e-catalogue
  3. Interface connection to the required EDI standards

e-procurement based procurement process for your C-parts

The benefits of the project work can be enjoyed in day-to-day business after the successful implementation. The procurement process now runs automatically and in a structured manner according to the set requirements. The error rate is very low and can be reduced further through regular feedback channels.

Your contact

Thomas Dahmen

Project Manager e-procurement